Re:The Fake Factory That Pumped Out Real Money
by rayiner on Sunday July 17, 2016 @02:50PM
(#12111242)
And Coase theorem says it doesn't matter who gets the credits--they'll eventually find their way to the most efficient allocation.
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Re:The Fake Factory That Pumped Out Real Money
by AnthonyMouse on Sunday July 17, 2016 @09:15PM
(#12112731)
It doesn't matter who gets the credits as far as efficiency in reducing carbon emissions.
It matters quite a lot financially however, because the credits are worth money, so anybody who gets them for less than the market price is in for a windfall.
Re:The Fake Factory That Pumped Out Real Money
by SilasX on Monday July 18, 2016 @03:14PM
(#12117410)
The Coase Theorem says it wouldn't matter for purposes of optimal allocation if there weren't transaction costs.
The Coase Theorem doesn't guarantee the absence of transaction costs in practice (and they are likely to be huge here, since the dude who likes incandescent light is going to be very far removed from the high-volume market), and it does guarantee that initial allocation will affect the wealth distribution.