Oh, I’ve had a couple of decades of daily professional exposure to it…but you must acknowledge of course there is a difference between SO2 and NOx allowances and CO2, for two reasons:
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It’s not practical to tax coal sulfur on an input basis, since from 5% to more than 15% of the sulfur is captured in the pyrites system, fly ash, and bottom ash, and this varies a bit depending upon the type of coal and the combustion technology. Meaning that a brute-force sulfur tax on the input side has a significant error built in.
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It’s not practical to tax NOx on an input basis, since the fuel-bound nitrogen of the coal, while strongly influencing the ultimate NOx, does not decide it - combustion technology and operations can swing NOx by +/- 50% with the same coal.
However, CO2 is much more closely a case where what goes in, comes out (barring LOI/UBC/CO losses, which are quite small and under 1%).
I don’t object to cap-and-trade, and in the case of SO2 and NOx (as well as mercury, should a cap-and-trade system be finalized for that) I think it’s a great plan, but I think that a carbon tax would have a more direct effect on changing the self-destructive consumer habits which ultimately drive the entire pollution equation.
It did, but as I explain above, it’s not apples to apples. And yes the EU market is (sort of) working right now, but it has a long way to go.
I guess what I don’t understand is why the free market can deal with taxation and restriction on the front end (allowance markets) but not on the back end (carbon taxes). How for instance do you envision cap and trade reducing gasoline and/or diesel fuel consumption? Are you applying a carbon tax per gallon of gasoline which leaves the refinery (the EU doesn’t…)? Or are you only concerned with the carbon emissions of the refinery itself? While the refinery might be able to change its emissions profile somewhat, that pales in comparison to the billions of gallons of gasoline and diesel which leave the refinery. In short, asking honestly and not snarking, how do you envision cap and trade helping immediately and substantively to kill off the crazed “drive everywhere in my giant guzzling SUV” culture which we live with? Or even better, the “let’s fly across the country for a 1-hour business meeting and then fly right back, wasting untold amounts of fuel in the process because it’s cheap?”