Thursday, April 01, 2010

The Flawed Economics of Emission Trading

Does 0 << x = 0 ever make sense?

Under any climate change  x is the probability of a catastrophic climatic event occuring.

We assume x >> 0 to justify the neccessity of tackling climate change and joining up to the Kyoto Protocols.

x = 0 to select an Emissions Trading Scheme as the lowest cost methodology capable of meeting the Kyoto Protocols.

This seems a little flawed to me, but hey what would I know.

An ETS is useful only in meeting Kyoto requirements. To be effective at combatting climate change an ETS would need to be global and that is unlikely. By eliminating any consideration of climate change from the economic equation an ETS has been selected by our government.

0 < x = 0

We get taxed to save the planet by getting taxed to kill the planet...

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