please explain the benefits due to the system of dealing in carbon credits.
2006-11-30 05:24:59 · 7 answers · asked by Anonymous in Environment
Let's say I have a company that is allowed to pollute say 6 tons per year, but I clean up my company and only need to pollute 4 tons per year.
Accross town there is a company that is allowed to pollute 6 tons per year but because they have older equipment, they need to pollute more. They can buy my credits and use them.
This is good because:
1. The amount of pollution is not increased
2. I am rewarded financially for cleaning up my factory
3. The higher polluter has to pay for the extra pollution, giving them incentive to clean up their factory, too.
2006-11-30 05:32:32 · answer #1 · answered by John L 5 · 0⤊ 0⤋
in broad strokes it puts a price on overpollution. if for example a factory in europe exceeds their carbon allocation, then they will have to go into the market and purchase more carbon emission credits. now, the question you may have is actually how they allocate these credits. under kyoto agreement, countries who subscribe to the system are allocated the credits. the governments of these countries in turn parcel these credits out to the industries within their countries. the problem with the carbon trading system as it stands is that the US who is the biggest polluter by far in the world does not subscribe to kyoto. without the participation of the US, the system may not be viable down the road.
2006-11-30 05:30:31 · answer #2 · answered by kencpp 1 · 1⤊ 0⤋
The general benefit is that they should encourage efficiencies in achieving a desired reduction. Say you and I each generate 10 carbon units, for a total of 20. Say we want to reduce our total in half, to 10 total. One way would be for each of us to reduce to 5, and that'd be it.
However, say my way of reducing would be to use solar panels, and I could go from 10 to 0 just as easily as going from 10 to 5. However, say you don't have an easy fix, and it will be difficult for you to even get to 5.
In a system allowing the trading of credits, I could go down to 0, since it's easy for me, and you would do nothing. Our combined total is still 10, meeting the goal, but at greater ease and lower cost.
2006-11-30 12:24:11 · answer #3 · answered by Stephen S 2 · 0⤊ 0⤋
well one supposed benefit is that large companies can pollute more by buying carbon credit from small eco-friendly companies and the total overall carbon emission remains the same. Unfortunately the people who are in the area of the polluting plants suffer because of the higher emissions in their area.
2006-11-30 05:29:31 · answer #4 · answered by Jake S 5 · 1⤊ 0⤋
there are none. when are people going to realize that the "hole" in the ozone is a frace. it shinks and expands over the years. while some places are hotter now, other places are cooler.
the carbon credit angency were created to put money in there own pocket.
2006-11-30 05:26:36 · answer #5 · answered by Anonymous · 0⤊ 1⤋
search the yahoo internet there are so much on your question you ask.
2006-11-30 05:28:17 · answer #6 · answered by dctlady2005 1 · 0⤊ 1⤋
i dont know
2006-11-30 05:27:03 · answer #7 · answered by Anonymous · 0⤊ 1⤋