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Old 05-10-2008   #10 (permalink)
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Re: Carbon credits

Carbon credits may not be the best way to go if the goal is to maximize the health of the environment. An analogy is the government deciding to address national obesity by proposing exercise and diet ,while also offering fat credits. If I don't wish to exercise or diet I can buy fat credits and not have to change my life style. Logically, the goal is to get everyone healthy, which is done better if everyone participates. But if we could buy fat credits, with the national goal calculated at 100 Million tons of fat, this may require some people need to get skinnier than is healthy, so they can make the credits available so others can remain fat.

The system I like better, than carbon credits, is a carbon reward system. One is given a tax rebate based on their conservation. It sort of like, for every pound of fat you lose, you get a $10 bill. One can then spend that as they like, adding this reward money back into the economy. If one adds trees to help absorb CO2 that also receives a reward because it helps the overall good. The credit system is more based on fear and with some of the ingenuity being used to get around the system. The reward system is a positive motivation system that taps into the ingenuity and dedication of everyone. Even businesses will invest in R&D, since the reward will help to pay for the good.

We may first need to establish the baseline with the current weight the zero point; no penalty and no reward. There is no angry pressure just cash incentive to make the earth healthier. It is a more positive experience. Where the free market can enter are those who develop good techniques. They can be the trainers for the fat cats. Their training efforts allows them to share the rewards. I see a smoke stack that can be improved we lease out the technology to help out and share the reward from the system. A carrot always works better than a stick and makes the horse much happier to keep walking forward.
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