There’s chatter in the news and on Capitol Hill about Cap & Trade–and while some surveys say the majority of Americans support it, the same surveys say only 23% of Americans really understand what Cap & Trade is.
What is it? According to the EPA, Cap & Trade is an environmental policy tool that “Caps” or limits total carbon emissions. The benefit of capping emissions includes cleaner air, cleaner water, more incentive for alternative fuel sources, reduced acid rain, and a slower march towards climate change. All good, right?
The “Trade” part is where companies that produce emissions can trade their emissions levels, buy or sell the right to emit more carbon. Companies buy or sell permits to emit CO2 and the price of permits gradually rise over time to discourage emissions altogether.
All good, right? So why the big debate? The point of Cap & Trade is to increase the cost of fuel so that Americans use less. Higher prices will trickle through the economy. CEOs will not eat the cost of producing emissions, they’ll pass the cost along to consumers by raising prices. Higher prices will lead to a cut back on consumer spending in turn leading to cutting back production which begets fewer jobs. Not exactly the recipe for economic recovery. In fact, the bulk of the financial burden of Cap & Trade will be shouldered by everyday citizens, many argue that low-income families will be hardest hit because most of their disposable income goes towards goods and fuel costs.
Yet, Enviro Girl argues, we already pay the price for emissions, why not apply a Cap & Trade program that directly links the costs of pollution and fuel to consumption? We’ll pay for it eventually anyway, whether through taxpayer-funded clean up or through diminished water and air quality. And higher fuel prices is a pretty powerful incentive for America to begin taking renewable fuel resources more seriously. If it costs too much to use coal or oil, solar, wind or hydro power might finally become a more viable option.
While the debate rages on, Enviro Girl believes an educated consituency should make their feelings known to their elected representatives. Still confused about Cap & Trade? Planet Green has the Short Attention Span Version here.
Interesting.
While I’d like to believe that companies will do their best to cap their emissions, I’m realistic enough to recognize that some will make token attempts only.
I hate to force issues – I’d rather see change come from within through education. So, I guess it’s up to the ECOwomen to be Protectors of the Planet
Enviro Girl is right. An educated constituency should make their feelings know to their representatives. A cap and trade system is in place in Europe and it has done little to decrease emissions. We will feel a tremendous amount of economic pain from this legislation for little gain. Cap and trade is not the right solution. Visit http://tiny.cc/jAWcZ to write your Legislators.