I was just reading a story on CTVNews's site (
Baird says meeting Kyoto would lead to 'collapse') and came upon the following quote:
Quote:
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Many experts say to effectively reduce emissions, such a system is necessary whereby industrial emissions are capped by regulations -- and those companies who are successful can sell their emissions credits to those that are not.
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There are two main criticisms to this that I hear:
(1) Selling credits to another company will not make it actually reduce any emissions
(2) Regulations set by bureaucrats could be totally unrealistic.
To address the first point, would it be better to have any credits (produced for reducing their regulations further than targets) only be able to be traded in for tax breaks? Every company would then have to strive to meet their targets or be subject to Government penalties, but those that exceed their targets still get some benefit? Would there be any impact of structuring it this way instead of the other way?
Food for thought... fire away.