Five Percent: Conserve a Little Energy

The Facts of Cap-and-Trade from Clean Energy Works on Vimeo.

Yep. It’s that simple.

Cap and trade seems incredibly complex, counter-intuitive, unfair, and misguided — if that’s your view, you have it about right, but the funny thing is, it will work — here’s why. The recent passage of the American Clean Energy Security act (ACES) in the House is a big milestone for cap and trade, but it will only pass the Senate if people understand what it is, and why it’s a good thing.

The first thing to know, is that the main part of cap and trade is the cap. The cap says: no more than a certain amount of CO2 can be released in a given year — major polluters are given a limit. Every year the cap gets tightened according to a predictable schedule. We are aiming for a target, and know what we have to do to get there.

The trade part is what makes things seem complicate and strange. So if I am an electricity utility executive, and I have a bunch of coal plants, I may find that I am releasing more CO2 than my limit. What makes trade cool is that if I don’t want to lay off my work force, I can decide to buy credits from another company — I can pay to pollute. Sure, it makes my costs go up, but now I have more incentive to clean up my act.

And no, it doesn’t mean we have more pollution, just more flexibility. My competitor, who had the foresight (more…)

The Times posted a very thoughtful article explaining why a carbon Cap and Trade policy is now the favored approach making its way through Congress now.

In the end, the merits of the system are mostly that it is expedient, politically and from a management perspective. No one likes a tax, even if it may be the far simpler solution to the problem. But if no one likes a tax, then it’s kind of a tough sell.

Some argue that cap and trade is just a tax wrapped in a politically tolerable icing. They’re pretty much right. (more…)

My Mom is visiting, taking a well-deserved rest from care of my father, who is no longer able to care for himself. After a few days of catching up, I found myself unable to restrain myself from reciting my manifesto. Sorry, Mom.

Condensing the details into a big picture that makes enough sense for a smart, but not-so-technical, and not-as-young person as I is a good opportunity. Throughout my life, I have observed that I only really understand something when I am able to present it in straightforward, no-jargon and instructive manner. For example, I have taught several software development languages to novice computer users — I often learn as much as the students I have taught.

Clean Coal?

We discussed clean coal and carbon sequestration, amongst other things. The simple explanation (more…)

News like yesterday’s is welcome amidst a sea of recent bad tidings — there was a lot of good news, but the most important for the world was an announcement by the EPA.

Sure, the stock market rose 500 points. But that’s only the mercurial stock market.

Yes, some of AIG’s lucky lottery winners bonus recipients have relinquished their ill-gotten gains. But that’s a (mere) $80M or so.

Yes, another $75M of Madoff’s ill-gotten gains have been identified, bringing the total to near $1B. But that’s less that 2% of the ultimate charlatan’s loot.

Yes, Mr. Geithner, recently down on his luck seems to have struck the proper nerve to stimulate our flagging banking system. But that’s … ok, well, if it sticks, this one’s pretty significant. But only in the context of, as my Mom calls it “The Winter of Our Discontent”. All in all, a pretty good news day.

But of all the news I read today, by far the most important bit was that Greenhouse Gasses (GHGs) will (finally once again) be considered a pollutant by our Environmental Protection Agency.
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Check this out. A simple (yep, simple!) explanation of why cap and trade, and another similar program called cap and rebate, both work. From TerraPass.

I came across this excellent, straightforward, and compelling page describing how cap and trade works in the Green Room blog of the Environmental Defense Fund. If anyone knows of such a clear explanation of how a carbon tax would work, please let me know and I’ll post it.

Update, 3/17/09, Here’s another article with a good explanation of cap and trade, in particular with a good contrast with carbon tax.