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All Quiet On The Policy Front

Where’s Climate Change at ?

Behind closed doors. Swept under the mat.

I think a number of people are coming to terms with the fact that carbon pricing cannot possibly sort the problem of emissions. The only way forward is regulation, legislation, rules, laws.

So, where are the policymakers ? And what are they saying ?

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The Price of Carbon

The Price of Carbon

by Jo Abbess
20 April 2010

1.   Introduction

Policy strategy for controlling risky excess atmospheric greenhouse gas (Gowdy, 2008, Sect. 4; McKibben, 2007, Ch. 1, pp. 19-20; Solomon et al., 2009; Tickell, 2008, Ch. 6, pp. 205-208) mostly derives from the notion that carbon dioxide emissions should be charged for, in order to prevent future emissions; similar to treatment for environmental pollutants (Giddens, 2009, Ch. 6, pp. 149-155; Gore, 2009, Ch. 15 “The True Cost of Carbon”; Pigou, 1932; Tickell, 2008, Ch.4, Box 4.1, pp. 112-116). Underscoring this idea is the evidence that fines, taxes and fees modify behaviour, reigning in the marginal social cost of “externalities” through financial disincentive (Baumol, 1972; Sandmo, 2009; Tol, 2008). However this approach may not enable the high-value, long-term investment required for decarbonisation, which needs adjustments to the economy at scale (CAT, 2010; Hepburn and Stern, 2008, pp. 39-40, Sect. (ii) “The Consequences of Non-marginality”; MacKay, 2008, Ch. 19; Tickell, 2008, Ch. 2, pp. 40-41).

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Cap and Trade is Going Down

Cap and Trade is….going….down. And that’s probably a good thing :-

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Creating a Carbon Price Differential

Creating a genuine and effective Carbon price differential will be awkward, perhaps impossible. Carbon Taxes will stop working after a few years, and Carbon Caps are already strongly resisted.

As for Carbon Trading, the incentive to cheat, the “leakage”, will mean that most exchanges will be measured in “hot air” – virtual Carbon emissions.

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The Good Energy Lady

The green “trade show” UK Aware was held at the exhibition centre Olympia 2, West London, England on 17th April.

I was talking with the lady from Good Energy. First of all we discussed their proposal to offer a dual fuel tariff, and the fact that there is still no green gas available to domestic customers.