Quote:
Originally Posted by rdret1
Ok, I admit I am not the sharpest tack in the box when it comes to global finances and "green" initiatives, but this kind of thing boggles my mind.
1. How do you place a monetary value on pollution that can be traded in stock exchange?
2. If all you are doing is trading your pollution output for someone else's pollution output, how is that supposed to eventually decrease the total world "greenhouse gas" content?
It all sounds like so much economic chicanery to me.
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It's actually pretty slick. You purchase the right to pollute, versus spending the additional resources to reduce pollution or reducing production.
Viola! A new commodity, which can be bought in bulk by speculators (enter Al Gore and company) and resold at a higher cost.
The best part is, like taxes, you pass the cost onto the consumers--as they ultimately pay for everything. This additional cost will ultimately pressure the consumer to reduce:
1. Their energy consumption (less money) and
2. Their material consumption (again less money)
Less demand for products will pressure manufacturers to produce less, which in turn...you get the picture.