
Here's a quote:
"Confidence in the certainty of declining caps is based on the mistaken assumption that cap-and trade was proven in the EPA's acid rain program. In fact, addressing acid rain required relatively minor modifications to coal-fired power plants... In contrast, the issues presented by climate change cannot be solved by tweaks to facilities; it requires an energy revolution through investments in building clean-energy facilities. The biggest obstacle to this revolution is that uncontrolled fossil fuel energy remains much cheaper than clean energy.
Cap-and-trade alone will not create confidence that clean energy will become profitable within a known time frame and so will not ignite the huge shift in investment needed to begin the clean-energy revolution."
The energy revolution they claim is needed is required--eventually (and, I would agree, the sooner the better).



The United States emits about double the greenhouse gases per dollar of GDP as Japan. That's not because Japan is a generation ahead of us in clean energy generation. It's because they are a generation ahead of us in using the currently existing energy efficiency opportunities that are right in front of us. Because energy is more expensive there, they have learned to be more judicious and smarter with it.
Cap and trade will make energy more expensive here--although probably not by as much as Williams and Zabel (and I for that matter) would like it to be to force a truly rapid revolution. However, the cap will compel companies to find ways to reduce their emissions. It's true that if the cap were declining rapidly and the only solution were renewable energy, that the concept might fail, but that's not the case; renewable energy is not the only solution. We can easily meet the emissions targets in Waxman-Markey or Kerry-Boxer with technologies and practices that are already widely available. At the same time, these bills contain additional incentives to help push investment towards the development of more renewable energy above and beyond what the cap-and-trade component of the bills might drive by themselves.

Williams and Zabel are similarly assuming that there is only one solution and that solution is untenable. The beauty of using cap and trade is that other solutions will also be found, in many cases ones we may not have thought of. In this case, we don't even have to be surprised, though, because the most obvious and cheapest solution is already staring us in the face. Put the cap and trade in place so we can unleash the energy efficiency revolution.
No comments:
Post a Comment