Comments on: Record CO2 Reduction in US Cap & Trade States http://cleantechnica.com/2012/01/24/record-co2-reduction-in-us-cap-trade-states/ Clean Tech News & Views: Solar Energy News. Wind Energy News. EV News. & More. Tue, 30 Dec 2014 14:13:00 +0000 hourly 1 http://wordpress.org/?v=4.0.1 By: Jake http://cleantechnica.com/2012/01/24/record-co2-reduction-in-us-cap-trade-states/#comment-122452 Wed, 30 May 2012 02:31:00 +0000 http://cleantechnica.com/?p=34226#comment-122452 Actually, a tax (price mechanism) will do the same as a cap (quantity mechanism) theoretically—and your statement that a low tax may not deter rich consumers is true for cap-n-trade if the cap is too lax. Profitable firms will just purchase cheap excess permits and continue to produce at high levels, where on the other hand if a tax higher than the trading permit price existed and was lower than marginal production costs, the tax would achieve better reduction levels. It’s sort of a silly way to denigrate a tax mechanism merely because the RGGI cap system has worked. They are equally effective if done right so why perpetuate unnecessary biases.

The rich may not have “limits” as you suggest, but in aggregate a price necessarily has a corresponding quantity “cap”.

]]> By: Mexico Finalizes Climate Bill to Cap Carbon | CleanTechnica http://cleantechnica.com/2012/01/24/record-co2-reduction-in-us-cap-trade-states/#comment-112559 Fri, 03 Feb 2012 02:43:19 +0000 http://cleantechnica.com/?p=34226#comment-112559 […] have covered some of the details here in: Record CO2 Reduction in Cap & trade States, EU on Track to Meet or Exceed Original Kyoto Targets, and Five Good Things Cap & Trade Has […]

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