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Why consumer protection means selling carbon permits

One of the thorniest problems in cap-and-trade programs is deciding how to distribute the carbon permits. Should the public sell pollution privileges or give them away for free?

Some folks worry that if we make polluters pay for carbon permits, they'll just raise prices for consumers. That's a perfectly legitimate concern. Unfortunately it turns out to be true, whether we sell the permits or give them away for free. Prices rise by the same amount in either scenario. (The only difference is whether polluters reap windfall profits or whether the public earns revenue from selling the permits.) It may be counterintuitive, but it's true.

It's also very hard to explain why this is the case without resorting to a lecture on economics. So in an attempt to clear things up, Sightline has put together this easy-on-the-eyes summary. It comes in four parts:

1. A simple explanation.
2. A slightly more detailed explanation.
3. A look at Europe's carbon trading market.
4. A review of the (basically unanimous) economic literature.

Take a look and let us know what you think.

Recent studies: organic ag is just as productive, and better for you

For years, industrial-food enthusiasts such as Norman Borlaug have attacked organic farming on two grounds: 1) it produces essentially the same nutritional results as chemical-intensive farming, and 2) it’s less productive. Both of those criticisms are crumbling. This month, the Organic Center released a “state of science” analysis of peer-reviewed studies comparing the nutritional content […]

Washington governor may veto bill restricting toxins in toys

Washington State Gov. Christine Gregoire may veto legislation that would be the toughest in the nation at making sure toys are free of (or low in) lead, cadmium, phthalates, and other toxins. Even though a slew of amendments exempt certain playthings, from tricycles to pellet guns to sleds, Big Toy officials have warned Gregoire that […]

BREAKING: Al Gore still not running, though superdelegates may force him to, only probably not

In his column today, Joe Klein spins out a preposterously unlikely scenario whereby the Democratic superdelegates get together and conspire to pass over both Obama and Clinton and instead hand the nomination to … Al Gore. Two or three paragraphs in I thinking, oh, Joe, pish-tosh. Then: Pish-tosh, you say, and you’re probably right. OK […]

How the Monterey Bay Aquarium makes its safe-seafood list

When it comes to safe seafood, the list-makers don’t horse around. Photo: SqueakyMarmot Back in the late 1990s, I happened to attend an exhibit at the Monterey Bay Aquarium in California called “Fishing for Solutions.” The experience profoundly changed my attitude toward seafood and the supposedly limitless abundance of the sea. The exhibit focused not […]

Prius ‘proven’ to get worse gas mileage than BMW 520d

This story in the U.K.'s Times Online is racing around the interwebs. Google "BMW 520d" and note how many pages deep it goes. Two goofballs journalists took a road trip, one in a Prius and the other in a BMW 520d. The BMW purportedly got about 4 percent better gas mileage than the "gas guzzling" Prius, which amazingly only managed a dismal 40 mpg. Coincidentally, that is exactly what our Prius got on a road trip last summer, which was not only jammed with people and camping gear but also had a giant cargo carrier strapped to the roof! Odd how the Prius always manages to lose these contests ... unless they're performed by independent third parties like Consumer Reports (Prius: 44 mpg, TDI Jetta: 34).

The Prius has set the bar and competitors are finally going after it. This is how homo sapiens are. This is what motivates them to build skyscrapers and airliners. For the first time in human history, they are finally competing over green issues, which is all good. The following story carefully orchestrated farce is, in reality, a tribute to the Prius engineering that kicked this whole show off. Somebody has a serious case of mileage envy.

EPA will request public comment on GHG regulation this spring

SCOTUS decreed that the U.S. EPA must decide whether the climate-change effects of carbon dioxide endanger public health, and, at long last, the agency is moving on that decision — kinda. In a letter to U.S. lawmakers Thursday, chief Stephen Johnson wrote that the EPA is writing proposed rules for regulation of CO2 emissions “from […]

L.A. Times mischaracterizes Pielke Jr.’s arguments in such a way as to make them newsworthy

Early in this L.A. Times piece, reporter Alan Zarembo characterizes Roger Pielke Jr.’s views as follows: His research has led him to believe that it is cheaper and more effective to adapt to global warming than to fight it. Instead of spending trillions of dollars to stabilize carbon dioxide levels across the planet — an […]

New report on massive growth of renewables last year

Climate Progress is the title of my blog posts' main home, as much as the "progress" part strains credulity at times. I only see two major quantitative areas of sustained progress: clean energy deployment (especially in Europe) and private sector clean-tech funding.

Those folk at Clean Edge, who wrote the best 2007 book on clean tech, The Clean Tech Revolution, have quantified these gains -- and made predictions about the future -- in a new report you can read here. Some interesting factoids:

Should emissions from employee commutes be included in company GHG inventories?

When businesses dip a toe in the rising sea of corporate action on climate change, the first box they check before diving in involves tabulating their own greenhouse-gas inventory. In getting your corporate house in order, the first step is defining where your yard ends and your neighbor's begins.

The good news: There is a clearly accepted international standard providing guidance to companies sorting "what's in" and "what's out" for their GHG inventory. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard is the playbook everyone is working from.

The bad news: Some issues are more clearly defined in the guidance than others, leaving individual companies to sort out their own best way forward.

Emissions from employee commutes are one such gray area. In these early days, how leading companies come down on this issue is critically important in setting a precedent. The GHG Protocol does provide general guidance on this issue, but more specific direction is needed.