Critics of a cap-and-trade system (whereby companies can purchase credits to offset pollution that they emit) question the financial benefits of such a system and claim that offsets simply allow carbon polluters to proverbially sweep their carbon emissions under the rug, as opposed to confronting the issue head-on by finding viable solutions to reduce their output.
I do agree that cap-and-trade is not a systemic solution because it does not directly incorporate a clear strategy for clean technology innovation. It's like putting a band-aid over a rash rather than determining and treating the cause of the breakout.
However, I believe that cap-and-trade, carbon tariffs, and other vehicles that provide reverse incentives for companies to emit greenhouse gasses will provide enough of a financial burden on polluters so that developing clean technologies will actually become their lowest cost solution. In this way, carbon limits, offsets, and taxes can serve as an effective market vehicle to spur greater innovation, allowing us to simultaneously accomplish our financial and environmental goals.
Posted: 7/23/2009 12:00:00 AM by
| with 0 comments