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  • Too Many Lobbyist Hands in the Cap and Trade Cookie Jar

    Warning from Dr. Enno Harders, a lead official from German Emissions Trading Authority, who experienced troubled initiating a German cap and trade system:

    Early cap and trade [proposals] receive enormous lobby.”

    Businesses rightfully have an interest in ensuring that they protect their bottom lines. Many of them have calculated that some sort of carbon capping is inevitable and that their interests will therefore be best served by trying to influence how such a cap is implemented. And the best way to do that will be to position themselves as supporters of the legislation and then to provide some helpful suggestions on how to “improve it.” Representatives from oil, coal, gas, wind, solar, energy-intensive producers and just about every company imaginable all have stake in the game one way or another.

    “Corporate support of cap-and-trade is largely responsible for the American Clean Energy and Security Act of 2009,” argues Tom Borelli, Ph.D, director of the Free Enterprise Project at the National Center for Public Policy Research.  Borelli asserts that most of the corporations haven’t done their homework since capping carbon acts as a massive energy tax, primarily on fossil fuels. With cap and trade, absolute limits on total emissions of greenhouse gases are established. Before those in a covered sector can emit a greenhouse gas, they need to have the ration coupons (also known as pollution permits or allowances) for each ton emitted. Because the ration coupons will have a value, and therefore a cost, cap and trade becomes a tax on fossil fuels and the energy they generate.

    The problem is, a number of these corporations have done their homework and are now waiting in line for a government handout, also knowing very well they can simply pass increased costs to the consumer.

    Special interest politics have always been a part of politics and it’s unlikely to stop any time soon. Milton Friedman’s son explains it nicely:

    “Special interest politics is a simple game. A hundred people sit in a circle, each with his pocket full of pennies. A politician walks around the outside of the circle, taking a penny from each person. No one minds; who cares about a penny? When he has gotten all the way around the circle, the politician throws fifty cents down in front of one person, who is overjoyed at the unexpected windfall. The process is repeated, ending with a different person. After a hundred rounds everyone is a hundred cents poorer, fifty cents richer, and happy.”

    In this case, the ‘pennies’ are taken from the American taxpayer, and in return they are hit with higher energy prices, job losses, income cuts, and a sharp left turn toward big government.

    Posted in Energy [slideshow_deploy]

    4 Responses to Too Many Lobbyist Hands in the Cap and Trade Cookie Jar

    1. JD Templeton Ca says:

      I was just wondering if any one in Congress has noticed that warming stopped ten years ago and we are now in a cooling trend caused by The changing P.D.O. (The pacific Decadal Oscillation, the Pacific Ocean has switched from warm to cold) and an exceptionally quit sun. This trend could easily last 30 years, if the past is any guide. As for AGW all the models show a hot spot appearing in the Troposphere as the CO2 traps more heat causing global warming. This heat has yet to be detected leaving us no CO2 signature so no man made global warming. Not that facts matter to Politicians.

    2. concerned, Raleigh, says:

      We need "FairTax"
      http://www.fairtax.org/site/PageServer. read the books before forming an opinion. We definately need to make a change in the way Govenment is running this nation. We are "We the people" and not "We the Government."

    3. Pingback: » Financial News Update - 05/20/09 NoisyRoom.net: “Extremism in the defense of liberty is no vice. Moderation in the face of tyranny is no virtue.” Barry Goldwater

    4. David Beaird says:

      It’s time for the American people to stand up against large corporations and big government and tell then “NO”. No to higher prices. No to more taxes. No to special interest groups who have made a mockery of our society. No to the politicians who want to control every aspect of our lives. No, no, no. Just say NO, before it’s too late. Email your Congressmen and Senators and tell them to vote “NO” on HR-2454, the American Energy and Security Act of 2009, when it comes up for a vote

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