Wednesday, March 24, 2010

Cap and Trade

The thinking behind Kyoto and Cap'n'Trade is that limiting production will drive the economy to a low carbon future - this fails. The refusal to address the causes of crisis with the most powerful driver to a solution is killing the planet. We need to empower consumers to make changes to the global economy and fight climate change this has become imperiative, because we have suffered years of Kyoto driven pollution.

We embarked on the disastorous Kyoto derived Cap'n'Trade pollution generation process for two self-serving reasons. The Green movement has been captured by the political Left who are very much against relying on consumer driven solutions, because ultimately such solutions require empowering consumers and reducing the state. The movement arose in the consumer society democracies of the West where the imposition of high consumer taxation was not going to be popular and so the Kyoto process of Cap'n'Trade was born to shift costs elsewhere. Cap'n'Trade is an effort to create a global market in pollution that will spread the cost across the globe, through trading imposed costs on production.

Cap'n'Trade will not be adopted worldwide as China, India, Indonesia, Malaysia, Brazil, Vietnam are developing countries who have production driven economies and cannot afford production cost increases. The developing world citizens are less than keen to endure poverty as the solution for a problem caused by the developed world. (Even if Cap'n'Trade were to be adopted worldwide it could only ever be a second best solution, because of the arbitrariness of how the Caps are assigned it will never be the most efficient way to run a planet.) Without a global market Kyoto/ETS/Cap'n'Trade has served to drive production to the developing economies and consequentially increase pollution - Kyoto kills the planet faster than doing nothing at all. The Cap'n'Trade attempt has failled, as it was always doomed to. Al Gore is part of the problem, not the solution and we need a new direction.

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