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  • How to Trade 'Cap & Trade' Policies - Barron's [View article]
    The "Cap and Trade" versus "Carbon Tax" is a very interesting debate

    The carbon tax proposed by Exxon's CEO is actually the better route to pursue, since it is easier to add an additional tax to gasoline, diesel, coal or other hydrocarbon. CEO Lee Raymond is extremely brilliant. On one hand he appears to be a responsible corporate citizen by taking responsibility for his company's pollution. On the other hand it, he knows damn well that any politican that even talks about endorsing a carbon TAX will be committing poltical suicide. Either way he wins.

    Obama knows the carbon TAX is politically dangerous, which is why he opted for the Cap-and-Trade route. However, the Cap-and-Trade scheme is a nightmare to administer (compared to a carbon tax). You need an army of thousands of inspectors to police compliance. How do you detect when someone is cheating and emitting more pollution that they are allocated. ? Furthermore, the Cap-and-Trade has many loopholes for legacy polluters.
    Jan 18 10:57 am |Rating: +3 -1 |Link to Comment
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