FEATURE, NOT BUG::

Carbon: What price simplicity? (Richard Black, 10/17/11, BBC)
 

One alternative to ETS-style emissions trading that was much discussed a few years ago, personal carbon allowances, has many attractions in principle.

But it makes things more complex rather than less; and anyway, in the political atmosphere post-Copenhagen, the chances of introducing it have receded into the invisible part of the spectrum.

So, the question again: is there a simpler way to do it?

Various figures have suggested at times over the last few years that the best approach would be to tackle carbon at source.

Simply, some kind of levy or tax or whatever would be imposed at the coal mine and at the oil and gas well.

As there are far fewer companies involved in these activities than might be candidates for emissions trading, the burden of administration should be much lower.

Yes, it would make fossil fuels and anything manufactured using them more expensive, as extractors would pass costs up the supply chain.

But ETS-style carbon trading makes things more expensive too; indeed, making fossil fuel use more expensive is the whole economic stick with which CO2 production is supposed to be beaten down.

Taxes will have to be awfully high to have the desired effect.

Posted by oj at October 17, 2011 7:07 PM
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