Once upon a time, people thought they would stop global warming, caused by carbon dioxide, by extinguishing their fossil-fuelled fires. But everybody loved their fossil fires and depended on them for every good thing in modern life. So they didn’t want to give them up. What would be the best way to persuade the people to extinguish the lovely fires?
Tax or ETS
The people decided that they just had to make the lovely fires more expensive and invent other ways of providing every good thing in modern life. That gave them two options to choose between: let the government put an extra tax on the fossil fuels, or create licences to emit carbon dioxide and let everybody trade them with each other. That was called an Emissions Trading Scheme (ETS), sometimes “cap and trade”.
Either scheme would have the effect of making the lovely fires more expensive because the cost of the tax or the emission certificates would be added to the price of the goods and services. Naturally, the people would end up paying more, but that was the whole point. All the good things in modern life were destroying the planet so they had to become too expensive to buy and the leaders said that was a sacrifice they were willing to make. Continue Reading →
Views: 331