I was skimming articles on
Real Clear Politics and saw a couple
talking about the monster issue conservative talk radio was sounding the alarms
about during the 2008 election: Cap And Trade.
What is “Cap and Trade,” exactly? Well, at it’s most basic level,
it’s a tax on companies that produce carbon dioxide emissions. At a closer
level, it is a system by which companies, industries, and even states and
countries purchase and carbon credits on an open market. But, in the end,
it’s a tax, because when everything is said and done, the revenue generated
by cap and trade transactions goes to… well, nobody really talks about
where it goes, but it goes to some government account.
There’s an obvious similarity between cap and trade and the SCHIP
legislation recently signed by President Obama: the government maneuvers
itself into a situation where it is actually encouraging the bad behavior
it was supposedly trying to discourage.
In the case of SCHIP, the legislation signed calls for a large tax increase on
cigarette and other tobacco product purchases. The rationale here is that
the increased fee will create a burden on those in society that purchase
these unhealthy products and, therefore, will encourage them to stop
engaging in behavior like smoking. The money collected from these taxes is
funnelled into programs to guarantee health insurance for children.
If you haven’t figured it out already, while legislators called this tax
increase a penalty on smokers that should decrease the number of smokers,
they actually want more smokers in order to fund SCHIP!
It’s will be just the same with cap and trade legislation. Replace a
person smoking cigarettes with a company that produces carbon dioxide
emissions as part of their operations and you’ve got the same thing. The
money collected from this scheme will be funnelled to some program or group
of programs that are then dependent upon companies doing something
government really does not want them to do.
The conflict of interest here is interesting, but to muddy the waters more,
it seems apparent, to me anyway, that the urgency of addressing carbon dioxide
emissions is still far from settled.
In one article I read, 10 Ways To Trade
Up by Kevin
Drum with Mother Jones, Drum compares cap
and trade ideas to the 1970 Clean Air Act and uses it as a proof of cap and
trade’s inevitable success.
We found out in 1990, when the Clean Air Act was modified to address acid rain pollution caused by sulfur dioxide from coal-fired power plants. Instead of requiring every plant to install a specific cleanup technology or meet a specific emission rate, the epa simply set a nationwide cap on the total volume of SO2 emissions and required power plants to own a permit for each ton of SO2 they emitted. Each plant was allocated a certain number of permits, and if a plant reduced its emissions to the point where it didn’t need all its permits, it could sell them to the highest bidder.
The problem I have with this comparison is the “well, duh!” assumption that there’s
nothing wrong with comparing carbon dioxide to sulfur dioxide. They’re
both bad for the environment, one might say.
The problem is that sulfur dioxide is a poisonous gas that can be used to
produce sulfuric acid in the atmosphere. Sulfur dioxide has been well
documented to cause a
wide variety of health issues in humans and animals. Carbon dioxide, not so
much. In fact, carbon dioxide has been shown, time and time again, to
improve the production of plant life and has little or no effect on humans.
It should also be mentioned here that carbon dioxide accounts for anywhere
from one tenth of a percent to one percent of all the greenhouse gases in
the atmosphere (the evil, nasty water vapor being the largest constituent
of these insidious chemicals bent on destroying life on earth.)
The global warming alarmists claim rising carbon dioxide levels in the
Earth’s atmosphere are to blame for seemingly corresponding rising global
temperatures. This is intriguing until you match up temperature
fluctuations on Earth with temperatures on other planets in our solar
system and match that to solar energy output from our sun.
As silly as it may seem to create an ellaborate trading market (to veil a
taxation scheme) to plunder companies for generating a mostly harmless gas
into the atmosphere, it’s very likely it will happen. President Obama has
been consistent in statements about environmental policy and the “rightful
place” of science.
Drum writes, “The backbone of (President Obama’s) climate policy is actually an ambitious program (Cap and Trade) that, if done right, will reduce greenhouse gases and raise desperately needed revenue—and, most important of all, has a fighting chance of making it through the congressional sausage factory in one piece.”
The country and the world seem to be slowly waking up, however. Most of the
online comments to the Mother Jones article seem to be indicative of this
as most of them decry global warming alarmism and question the logistics of
cap and trade legislation.