Economists are fixated on cap and trade systems to set a price for carbon. That is, someone sets an arbitrary target for carbon emissions then allocates permits that people now trade. While this might work it is not the best most certain solution to the problem. Another solution is to estimate the amount of money that we need to invest in renewable energy then apply a carbon surcharge where the money raised must be spent on renewable energy technologies. This is certain to work. The surcharge needed to reduce emissions to zero within 20 years with existing technologies is estimated at 15% on existing energy. As the tax on energy now approaches or is greater than 50% on some energy a surcharge (not a tax) of 15% applied to reducing greenhouse gases would not greatly affect the economy. The approach is market based but the market is in technologies that reduce carbon emissions not an artificial easily compromised market in carbon permits.
-
Recent Posts
- Energy Rewards to Reduce the Level of Greenhouse Gas
- How to build the Cotter Dam with No increase in Water Rates
- Funding the Broadband Network with Zero Interest Loans
- Fixing the GFC while reducing ghg
- Zero Interest with Zero Emissions
- Patent Protection of Genes Unnecessary
- Creative Finance to build the Cotter Dam
- Reforming Election Funding
- Financing a Nation’s Health Bills
- The Democratisation of Government Spending
Archives
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- August 2006
- June 2006