Granted, theory and practice don't always line up [...]
Yeah. Europe's version doesn't work (http://www.cphpost.dk/news/national/88-national/47643-denmark-rife-with-co2-fraud.html).
[...] but the economics seem basically sound.
Only for the first sale. Once the original owner of the allotment chooses to re-sell his allotment, the cost will still be passed onto the consumer. Since they no longer receive a kickback from the resale, they become a net loser in the process.
This also assumes that companies can't overbuy during the initial sale. I'll bet you dollars to donuts that companies will do everything they can to get spare allocations, as this will give them a cartel position in the new artificial market for pollution.
(Also, it's worth mentioning that your zeroth assumption is not exactly sound. I stopped believing in AGW last year as I dove into Climategate. After following up on the issues that were contained in the e-mails and the software engineer's ReadMe file, I've come to the conclusion that the only data inputs that are actually trustworthy are the satellite data. If you're willing to grind through technical minutia, my journey through the data is haphazardly recorded in this tag (http://meiczyslaw.livejournal.com/tag/climaquiddick).)
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Date: 2010-02-17 03:57 am (UTC)Yeah. Europe's version doesn't work (http://www.cphpost.dk/news/national/88-national/47643-denmark-rife-with-co2-fraud.html).
[...] but the economics seem basically sound.
Only for the first sale. Once the original owner of the allotment chooses to re-sell his allotment, the cost will still be passed onto the consumer. Since they no longer receive a kickback from the resale, they become a net loser in the process.
This also assumes that companies can't overbuy during the initial sale. I'll bet you dollars to donuts that companies will do everything they can to get spare allocations, as this will give them a cartel position in the new artificial market for pollution.
(Also, it's worth mentioning that your zeroth assumption is not exactly sound. I stopped believing in AGW last year as I dove into Climategate. After following up on the issues that were contained in the e-mails and the software engineer's ReadMe file, I've come to the conclusion that the only data inputs that are actually trustworthy are the satellite data. If you're willing to grind through technical minutia, my journey through the data is haphazardly recorded in this tag (http://meiczyslaw.livejournal.com/tag/climaquiddick).)