There is still no conclusive evidence that human activity is causing global temperatures to rise. Yet President Bush is expected to announce today his backing of a “cap-and-trade” scheme to reduce greenhouse gas emissions. It would involve the purchase and sale of emissions rights on an open market.
It is still unclear whether the system would be voluntary or mandatory but few expect that it would stay voluntary for long.
Skeptics are suspicious that Bush’s move is political a chance for him to throw something to the environmentalists rather than a bow to scientific realities.
Economists see permit trading as a far preferable approach to command-and-control regulations. But they warn that it still represents a huge gamble with the U.S. economy as well as a threat to developing nations that are dependent on U.S. growth.
Source: James K. Glassman (American Enterprise Institute), Turning Green, Wall Street Journal, February 14, 2002.
For text (WSJ subscribers)
http://online.wsj.com/article/0,4286,SB1013653004160050120,00.htm
For more on Global Warming http://www.ncpa.org/iss/env
FMF Policy Bulletin\26 February 2002
