Here’s a half-baked post that I started months ago. I decided to rush it to press for Earth Day, which is today.
The first U.S. auction for carbon emission pollution rights occurred in December of 2008. It raised over $38.5B, which will go to six states in New England. From ScienceNOW Daily News:
The auction’s premise is that putting a price tag on pollution–so-called carbon trading–will eventually reduce emissions industrywide. Companies must pay for the right to emit greenhouse gas emissions and are penalized for excess pollution.
RGGI states, picture
How did the auction work? online, reserve price, open to investors and environmental groups, required for power companies in RGGI states. Not required for manufacturing or transportation. Any earth-day-interested readers out there to fill in these details? Or, to do a little follow up research about how things have gone? (I wrote this last December.)
Finally, here is a humorous critique of carbon trading, based on the observation that carbon credits are a scarce resource. This is highlighted by a paired example from cheatneutral. I find it compelling.