A Possible Market for Pollutants

This is a totally awesome direction to be moving in. The only way that companies will have any interest in limiting output of pollution is if the pollutants themselves become tradable commodities. Although very preliminary, here is the concept:

“The negotiations, conducted primarily by the chief executives of the companies, did not produce a model piece of legislation, but rather a detailed set of principles that they suggest as a guide to any legislation. In the Senate, there are already four Democratic proposals for limiting carbon emissions and creating a market-based system, under which the government gives or sells permits to businesses, allowing them a certain level of emissions.”

Assuming the government is smart enough to auction the permits rather than drop them from helicopters, this is a great way to generate revenue. Some of that revenue can be used for making sure the companies are compliant with the new regulations. Finally, an incentive to be environmentally friendly!