In a June 26th column in the Houston Chronicle, Fred Krupp, president of the Environmental Defense Fund and Andrew M. Liveris, CEO and Chairman of the Board of the Dow Chemical Company lay out the benefits of such a policy.
Cap-and-trade is a free market way of ensuring environmentally and economically sound ways of reducing our dependence on carbon-emitting fuels while allowing companies to continue their business almost as usual. Companies are given carbon credits.
The column explains it thus:
"Companies that are under their emission targets can sell their allowances on a new carbon market. Companies that cannot meet their targets can buy extra allowances from the same carbon market. Cap-and-trade uses the efficiency of the marketplace to drive innovation, creating new carbon-reducing technologies at the lowest possible cost."
When acid rain became a true menace in the '80s, the Clean Air Act was instituted and "the cap-and-trade approach reduced emissions faster, and more cheaply, than anyone predicted. Under cap and trade, government doesn’t pick winners and losers — private markets do that job."
The tag team columnists go on to say, "This is how it should be."
For those who argue that this could be crippling to the economy, especially in its current state, the pair clarify:
"Opponents claim that this bill will result in higher energy costs. They are confusing price with cost. Although this legislation will lead to modestly higher energy prices, this, in turn, will lead to greater energy efficiency and new, cleaner energy technologies. This will, in all likelihood, result in lower overall energy costs. A true win, win, win — lower energy costs, greater energy security and fewer carbon emissions!"
Not only that, but the policy has the potential of creating new jobs in the lagging manufacturing industry.
"A single wind turbine, for example, contains 250 tons of steel and 8,000 parts, from ball bearings and electronic controls to gearboxes. Jobs manufacturing those parts can be created right here in America, especially in our manufacturing heartland, the Midwest. Ohio has lost more than 213,000 manufacturing jobs since 2000. For Michigan, the figure is almost 497,000 jobs lost. One way to jump-start our economy is with a cap-and-trade bill."
Another win, making it a win, win, win, WIN situation.
And keep in mind, one of the co-authors is the head of Dow Chemical, a company not exactly renowned for its environmental and social responsibility.
Wake up, America!
Cap-and-trade is a free market way of ensuring environmentally and economically sound ways of reducing our dependence on carbon-emitting fuels while allowing companies to continue their business almost as usual. Companies are given carbon credits.
The column explains it thus:
"Companies that are under their emission targets can sell their allowances on a new carbon market. Companies that cannot meet their targets can buy extra allowances from the same carbon market. Cap-and-trade uses the efficiency of the marketplace to drive innovation, creating new carbon-reducing technologies at the lowest possible cost."
When acid rain became a true menace in the '80s, the Clean Air Act was instituted and "the cap-and-trade approach reduced emissions faster, and more cheaply, than anyone predicted. Under cap and trade, government doesn’t pick winners and losers — private markets do that job."
The tag team columnists go on to say, "This is how it should be."
For those who argue that this could be crippling to the economy, especially in its current state, the pair clarify:
"Opponents claim that this bill will result in higher energy costs. They are confusing price with cost. Although this legislation will lead to modestly higher energy prices, this, in turn, will lead to greater energy efficiency and new, cleaner energy technologies. This will, in all likelihood, result in lower overall energy costs. A true win, win, win — lower energy costs, greater energy security and fewer carbon emissions!"
Not only that, but the policy has the potential of creating new jobs in the lagging manufacturing industry.
"A single wind turbine, for example, contains 250 tons of steel and 8,000 parts, from ball bearings and electronic controls to gearboxes. Jobs manufacturing those parts can be created right here in America, especially in our manufacturing heartland, the Midwest. Ohio has lost more than 213,000 manufacturing jobs since 2000. For Michigan, the figure is almost 497,000 jobs lost. One way to jump-start our economy is with a cap-and-trade bill."
Another win, making it a win, win, win, WIN situation.
And keep in mind, one of the co-authors is the head of Dow Chemical, a company not exactly renowned for its environmental and social responsibility.
Wake up, America!
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