Saturday, April 25, 2009

Regardless of What Gingrich Says, Cap & Trade is Nothing to Fear

Here’s an exchange between Newt Gingrich and Rep. Henry Waxman (D-CA).  Mr. Gingrich is citing evidence that has repeatedly been proven false.  Specifically, he’s pointing to a MIT report that Republicans use to make the claim that cap and trade will cost taxpayers $3,100 in new energy expenses.  Waxman proceeds to refute his claims.

Cap and trade is exactly what it sounds like.  A cap is placed on carbon emissions.  If a company A goes over this cap, they can trade, or buy, carbon credits from company B, who is under the cap and has credits to sell.  The purchased credits allow Company A to go over the cap. 

What I gather, Republicans believe that no polluter will be able to remain under the cap, which would force them to buy credits and pass the expense on to the consumer.  They also must believe that no polluter will be able to cover the expense of cleaning up their emissions.  Basically, more defeatist attitude from the Party of No. 

Why don’t they look at it this way?  Company B, who has taken the necessary steps to clean up their act and reduce carbon emissions, is making money by selling to Company A, who may quickly find that spending the money necessary to stay under the cap is advantageous to their long term bottom line.  What’s wrong with that? 

Americans have always gotten things done.  Upgrading our energy grid, regardless of climate change, is necessary and important to our future strength and prosperity.  It’s time to put aside false concerns, roll up our sleeves, and do this.

2 comments:

  1. Amen. I'm with you on this, but you know, don't you, that once cap and trade goes into effect it's going to be like the IRS-- loopholes and a big beaurocracy--a real mess and Newt and the boys will be sqealing like stuck pigs....nevertheless it's the best we've got and we absolutely must do it. Another great post. Well done :-)

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  2. Pinkpackrat,

    You are absolutely right and I have over simplified here. There is probably a better way, but I think ultimately, them main goal is not to trade carbon credits on the open market, but to force these companies to make the necessary adjustments so that they don't have to worry about trading anything. My biggest problem is the lack of vision from the likes of Mr. Gingrich and others who argue that climate change doesn't exist therefore we shouldn't do anything. My argument is, it doesn't matter either way. We have efficiencies that will not only clean the air, but make energy less expensive for all and these guys are arguing that the economy will collapse. I'm not buying what they're selling.

    At any rate, thanks, as always, for the kind words and for stopping by. I really enjoy your feedback.

    Best,
    Andrew T.

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