…environmental economics and the implications of environmental policy

Archive for the ‘upstream cap and trade’ tag

A Carbon Price is a Carbon Price, so Long Live the Fog

with one comment

I have been wrestling on a daily basis about not killing the carbon tax by taking the low road and supporting an upstream cap and trade system for emissions from buildings, transport and manufacturing. UCT essentially assigns caps to fuel wholesalers who then simply pass on the value of purchased permits downstream to fuel users, who see a signal a lot like a carbon tax.

But then I came across this quote from what looks to be Obama’s Treasury Secretary, a known fixer in the financial world:

“Most consequential choices involve shades of gray, and some fog is often useful in getting things done.”


Many have been saying this of upstream cap and trade, but the fog analogy hit home for some reason. So, perhaps it is time to blow some smoke. As my Scottish grandma would say, Lang may yer lum reek!

Written by Dave Sawyer

November 7th, 2008 at 2:56 pm