The Fake Factory That Pumped Out Real Money

Re:The Fake Factory That Pumped Out Real Money by tomjen3 on Sunday July 17, 2016 @01:33PM (#12110917)

If I can save 10 tons of co2 at a cost of 2 dollars and you can save it only at 4 dollars, then if we have to lower the amount by 10 tons with a tax that is evenly distributed the total cost is going to be 3 dollars - 50% more than under a cap and trade system, where I sell you 10 tons worth of co2 credits and implement all the changes.

Since ultimately a carbon limitation is going to mean more expensive products, it is important to limit it as much as possible.

Also I don't see how a cap-and-trade system is going to be more difficult to enforce than a tax, you are still going to have to check if all the companies have paid their taxes.

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Re:The Fake Factory That Pumped Out Real Money by slavik81 on Sunday July 17, 2016 @07:28PM (#12112419)

The 50% in your analysis stems entirely from the fact that you're using ridiculously small integers. At any tax rate greater than $2, the first person would save money by making the change. You say $3, but it could be $2.01. At exactly $2 they would have no preference between enacting the change or not.

Of course, you omitted that the same must be true for cap and trade. The person who can save CO2 at a cost of $2 would have no preference between enacting the change or not if they were only to be paid $2. You'd need to pay them more. Like, $2.01 or $3 if we're only using integers. Exactly like the tax.

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