What’s a Cap-and-Trade For?
March 10th, 2009Posted by: Roger Pielke, Jr.
Yesterday, Warren Buffett, the Oracle of Omaha, had some critical things to say about proposed cap and trade legislation. That in itself should raise some concerns about the political future of cap and trade, given Buffett’s high standing with both parties. But perhaps of more immediate concern is the reponse of Obama’s spokesperson, when asked about Buffett’s comments:
In terms of cap-and-trade, the President and the administration look forward to working with Congress to put a solution together — a market-based solution that will drive us to energy independence and create a market for — an even more robust market for alternative fuels and, as I said, the steps that we need to become energy-independent.
This is a process that rewards the innovation of the market, a principle that many previously have espoused.
Energy independence? What about climate?
March 10th, 2009 at 9:00 am
What’s a cap and trade for?
The answer may come from examining:
Who’s for a cap and trade?
AGW believers who also believe the government position that the tax will cut down on CO2 emissions are for it.
AGW believers who have critically examined the effect of the tax on global warming and on the economy are against it.
Marxists who want to stick it to the big energy companies and re-distribute wealth are for it.
Marxists who have figured out that the cost will be passed to everyone making the tax regressive are against it.
Believers in big government who want to talk about soaking the rich while taxing everyone are for it.
Believers in big government who want to keep the tax system regressive are against it.
Capitalists are against it.
Nationalists who want to take care of the USA first are against it.
This list could go on way too long for a blog post but the point is that the cap and trade is not an amoral issue of science but a value based policy decision. Honest people with different values will have different positions.
March 10th, 2009 at 10:39 am
People who believe in the principle of “simple solutions are best” are not enthusiasts. On the other hand the complexity of cap and trade will ensure the employment of a large group of interpreters, checkers, lawyers, etc. Perhaps this strategy is carefully addressing white collar unemployment.
March 10th, 2009 at 11:07 am
So, we will go from derivatives supporting no-equity subprime mortgages to bring about universal homeownership to derivatives for hot air to make us energy independent?
Brilliant!