tag:blogger.com,1999:blog-1527766217650773141.post1651341392059963128..comments2023-07-12T06:12:30.772-07:00Comments on Demand Side Transcript: How to create a market for planetary survivalAlanhttp://www.blogger.com/profile/07323700324276425194noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1527766217650773141.post-8399770830981858042007-10-12T09:04:00.000-07:002007-10-12T09:04:00.000-07:00Your point is well taken. Price is necessary, but...Your point is well taken. Price is necessary, but is it sufficient?<BR/><BR/>And as we reduce lenience we approach the regulation that is more effective. The final question in the Q&A following Frost's presentation at the Beyond Stern conference came from a carbon trading advocate who made the point you are making.<BR/><BR/>Frost's response was that as we get close to an actual cap, we are getting close to the regulation that says we're only buying low carbon plant and equipment. So the two points converge.<BR/><BR/>Thanks for the side note as well.Alanhttps://www.blogger.com/profile/07323700324276425194noreply@blogger.comtag:blogger.com,1999:blog-1527766217650773141.post-91187152548269957332007-10-11T15:21:00.000-07:002007-10-11T15:21:00.000-07:00"This market failure has driven governments to con..."This market failure has driven governments to construct the highly imperfect remedies of carbon trading and carbon taxes, clumsy attempts to have the price include at least a fraction of the cost. It hasn't worked."<BR/><BR/><BR/>From what I've seen, carbon trading and such things have worked in various places in the US. But the biggest and most visible carbon trading program, the one in Europe, has so far failed in its early stages.<BR/><BR/>But the reason it failed seems to be that it was so lenient, so cautious, that the number of carbon credits allowed were enough to allow just as much carbon output as there had been without any carbon trading. So there was no scarcity, no costs to producing carbon, and therefore no cost benefits to be had by reducing emissions. That's easily fixed by being more aggressive with the target carbon reductions.<BR/><BR/>On a side note, the link to this blog post found in the "previous" links at the top right was pointing to the wrong blog post.T-Bonehttps://www.blogger.com/profile/02555560301535122149noreply@blogger.com