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  • Cap And Tax - The Waxman-Markey Act Blog 4 comments
    Jun 17, 2009 12:32 PM

    I am starting this blog as a place to put data, my thoughts and others thoughts on cap and tax. the first post is an excellent analysis by lazyJ:


    The Waxman-Markey Act does NOT "give away" 85% of emission allowances. It gives away 22%, and reserves the other 78% for the public interest.

    Specified trade-sensitive industries (steel, aluminum, cement) get 15%, so they can compete with overseas competitors. They cannot grow, and their allowances decline every year, so they must become more efficient, or shrink.

    Merchant power plant owners get about 5%, about half of what they need to operate. Oil refineries get 2%, enough to cover nearly all of their emissions (so they can compete with Caribbean refineries), but not their product (which will be subject to purchasing emission allowances regardless of where the crude is refined).

    The rest is reserved for electric consumers, natural gas consumers, heating oil consumers, energy efficiency, low-income assistance, environmental adaptation, tropical forest preservation, and other public interest purposes. Many, or most of these will be auctioned, with the proceeds used for the specified purposes. Only the utilities which actually own their own power plants will directly use the allowances that are targeted for the benefit of their consumers.
    Jun 16 10:18 AM
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  • lighthouse10
    , contributor
    Comments (6) | Send Message
    That certainly sounds better than what is usually reported...


    However, Cap and Trade is still avery roundabout way of achieving emission reduction - with numerous offsets still applying.


    Direct regulation achieves the stated aim, and federal goals could be overseen by individual state regulators, in line with the David Sokol (MidAmerican Energy) proposal.


    The problem of energy conversion costs can be solved
    taking into account the long term planning associated with the 2050 CO2 targets, such that loan or equity financed cost of changeovers could be recuperated by a slow payback from customers, with little effect on the price they are charged, which is the usual political worry.


    I am writing an alternative way the USA could handle climate change:




    Climate Change USA 2009
    How to achieve emission reduction and how to fund it:
    Without efficiency regulation, industrial carbon taxes or cap and trade schemes


    Part 1: Why All Energy Efficiency Regulation is Wrong
    Politicians don't object to energy efficiency as it sounds too good to be true. It is.


    The Consumer Side
    Product Performance -- Construction and Appearance
    Price Increase -- Lack of Money, Energy or Emission Savings


    The Manufacturer Side
    Meeting Consumer Demand -- Green Technology -- Green Marketing


    The Energy Side
    Energy Supply -- Energy Security -- Cars and Oil Dependence


    The Emission Side
    Buildings -- Industry -- Power Stations -- Light Bulbs


    A New Car Deal for America
    All cars available and their emission output lowered


    Part 2: Emission Policy
    Introduction: The need to deal with emissions


    The Overall Picture
    Emission sources, land and ocean cycles, agriculture and deforestation


    Electric Politics in a new Electric World
    A summary of electricity policy that also brings a new role with buildings and transport


    Carbon Taxation
    Fuel Tax -- Emission Tax


    Market Reduction of CO2: Cap and Trade - or Not?
    Basic Idea -- Offsets -- Tree Planting -- Manufacture Shift -- Fair Trade -- Surreal Market -- Real Market -- Allowances: Auctions + Hand-Outs -- Allowance Trading -- Companies: Business Stability + Cost --
    In Conclusion


    Industrial Regulation [in development]
    Energy and Emissions in a Free America [in development]
    Emission reduction solutions, Federal Grid Commission, Consumer protection


    Peter in Dublin
    17 Jun 2009, 05:29 PM Reply Like
  • Living4Dividends
    , contributor
    Comments (1217) | Send Message
    Author’s reply » Thanks Peter


    The original post was by LazyJ. I put it here in my blog because it shows how Cap n Tax will affect various industries, especially utilities.
    18 Jun 2009, 08:14 AM Reply Like
  • Living4Dividends
    , contributor
    Comments (1217) | Send Message
    Author’s reply » Congressional Budget Office's numbers for the cost of Waxman-Markey, these numbers are suspect:


    "On that basis, the Congressional Budget Office (CBO) estimates that the net annual economy-wide cost of the cap-and-trade program in 2020 would be $22 billion—or about $175 per household. That figure includes the cost of restructuring the production and use of energy and of payments made to foreign entities under the program, but it does not include the economic benefits and other benefits of the reduction in GHG emissions and the associated slowing of climate change. CBO could not determine the incidence of certain pieces (including both costs and benefits) that represent, on net, about 8 percent of the total. For the remaining portion of the net cost, households in the lowest income quintile would see an average net benefit of about $40 in 2020, while households in the highest income quintile would see a net cost of $245."
    21 Jun 2009, 07:13 AM Reply Like
  • AltonDelmote
    , contributor
    Comments (4) | Send Message
    It is extremely obvious that given our environments limitations in coping with all of the poisons we have been literally dumping into it.


    20 Oct 2010, 12:38 AM Reply Like
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