Plano Texas Politics

July 1, 2009

My Own Argument Against Cap and Trade

I’m sure someone has already come up with this, but this is one argument against cap and trade that I call my own.

While I would deny that we are producing to much carbon, I will also say that, going under the assumption we do need to reduce carbon, cap and trade will not be an effective way to limit it.  Business costs rise.    What do businesses do?   They relocate.  Let’s suppose that businesses that represent 10 percent of American carbon emissions move.  This seems pretty reasonable because the businesses with the most carbon emissions will be the first to go.  Suppose some of them go to China, and when they research environmental protection laws in china, they find that if there are any, they don’t come close to the American standards.  Begin to produce more carbon than they produced before.  If they increase carbon output by only one fifth, or produce 12% of America’s 2008 carbon output, and companies still in America produce 80% (80% is less than what I heard America should be producing in a decade under cap and trade) of America’s 2008 carbon output, then we have arrived at a whopping 8% reduction in carbon output.  And that’s before adding other ways to get around the law, or breaking the law, into my calculations.  All that at a tremendous cost: jobs lost, prices up, more real pollutants as companies move to less regulated countries, and probably effects on businesses similar to that of Europe’s cap and trade system.  (see this article paragraphs 7-10.  the rest is good too)

Finally, if you think the cap could just be lower to make it effective, (and I think it supposed to lower much further, just don’t quote me there) then more companies would relocate until carbon production was somewhat affordable.  That’s the way markets work.  If man is responsible for global warming, then, well, I’m afraid that’s just too bad if cap and trade is the best we can do. 

–Samuel Peck

Call and Ask Your Senators to Oppose Cap and Trade

I didn’t realize how much of this was redundant when I wrote it because I had not read James’ pasts, but I’ll keep it.

“[U]nder my plan of a cap and trade system, electricity rates would necessarily skyrocket.”

            — Barack Obama, 2008  (click here to see video of Obama saying it, this quote is about 40 seconds into it, but the whole thing is only 2 minutes.  If you watch the whole thing you can give his points a much fairer evaluation and rejection, knowing you didn’t get him out of context in any way)

Take action now by clicking here to tell your senators to vote it down regardless of amendments.

Below is part of Senator Kay Bailey Hutchinson’s response to an email about cap and trade:

Some Members of Congress have expressed their intent to mandate a cap-and-trade policy to be imposed on all Americans.  I believe that cap-and-trade would increase energy prices. In 2008, Peter Orszag, who then served as the Director of the Congressional Budget Office, and who now serves as the Director of the Office of Management and Budget, testified before the U.S. Senate’s Committee on Finance on the implications of a cap-and-trade regime.  In his testimony, Director Orszag stated, “Under a cap-and-trade program, firms would not ultimately bear most of the costs of the allowances but instead would pass them along to their customers in the form of higher prices.”

For this reason, I believe that a cap-and-trade approach to address climate change would be onerous and would adversely impact the economy.  It could create economic hardship for farmers, ranchers, workers and small businesses, in addition to consumers.  The last thing our nation needs during this time of economic hardship is higher energy prices and higher levels of unemployment due to a federal mandate passed down from Washington.

–posted by Samuel Peck