These are all part of a dramatic change in the way that we view carbon emissions.
There are three things that are prominently in the news about carbon emissions and addressing them in June of 2012. These are all part of a dramatic change in the way that we view carbon emissions.
- Australia is opening up a Carbon Tax at $23 per ton. They are adjusting from the mistakes of Europe when they started cap and trade at too low a price. Undermining the whole process.
- In the meanwhile, Texas is opening a market for carbon. The Oil capital of the US is also the largest Wind producer of electricity.
- California credit allowances jump in price dramatically.
2. Cap and Trade exchanges. Texas and California.
3. Tax Mechanism.
“The carbon pricing scheme will impose costs on big polluters, which will result in higher end prices for certain products. Treasury estimates that an average family will pay $9.90 more per week in the first year of the scheme’s introduction.” But 9 out of 10 households will get some level of reimbursements “ through personal income tax cuts and increases in pensions and allowances, as well as other measures”. This will already take effect from May-June 2012. Check out the Household Carbon tax estimator for Australia:
A market mechanism like Australia's seems like an good approach. There is not a massive initial gift of credits to the coal-burning companies. The government doesn't take all the money and run. The market is given an opportunity to improve the costing to accommodate the externalities of fossil fuels.
Let's see how that plays forward?
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