Skip to comments.Hot Air: The EU's Emissions Trading System Isn't Working (So Let's Tax 'Em Instead)
Posted on 02/16/2012 8:38:11 PM PST by Olog-hai
In the perfect world of economic liberals, every commodity has its price. Limited supply makes goods more expensive and vice versa. That's how markets workat least in theory.
In practice, things often look different, and this is especially true when it comes to emissions trading, a business subject to a very different mechanism: laws dictated by the European Union.
Economists have generally praised the trading scheme as a nearly ideal instrument for reducing harmful carbon dioxide emissions. But for the last half year, prices for CO2 certificates have dropped almost continuously, decreasing by about half, to around 8 ($10.60) per metric ton. Not even the closure of eight German nuclear power plants in 2011, and the resulting increase in demand for coal power, has done much to lastingly reverse the trend.
Michael Kröhnert, an emissions trader in Berlin, refers to the plunging prices as a slaughter. And he fully expects it to continue. "The spiral is spinning downward," he says.
Bit by bit, the business of emissions certificates is losing its purpose and incentive. In hindsight, it's clear that introducing a CO2 taxanother alternative discussed initiallywould have been more feasible and more effective. Another option would have been to establish limits and then tighten them every year. A battle raging between the EU and the rest of the world over the decision to require airlines flying to or from Europe to purchase carbon certificates is not exactly generating extra support for emissions trading. For the EU, at this point, it's become purely a matter of saving its prestigious project.
(Excerpt) Read more at spiegel.de ...
You can bet that if the “cost of carbon” was rising instead of dropping they wouldn’t even be discussing this.
The scum are going to make their “global warming” scam work one way or the other.
The total shamelessness of the corrupt political scum is staggering.