After reading Governor Sarah Palin’s op-ed in the Washington Post today, I am convinced that she is completely uninformed on the issue of cap and trade.
First, let me introduce myself. My name is Lesley Bunnell and I work in the Providence, RI office of CLF. I have a more vested interest in Sarah Palin’s environmental blunders, as I am originally from Alaska. I regularly cringe at the thought that my beloved home state’s identity is synonymous with someone so unaware of basic environmental issues.
Soon-to-be former Governor Palin’s claims that President Obama’s cap and trade energy plan threatens the US economy. Apparently, Governor Palin believes that by limiting companies and Big Business’s carbon dioxide emissions, mass jobs will be lost, there will be more expensive energy costs for consumers, and it will drive the Big Business Energy Sector out of our country. Therefore, the US will have to out-source its energy needs to foreign suppliers. Since our country’s energy sources are so plentiful, regulating their emissions only depletes their efficacy. Of course, her only example of the US’s energy bounty is Alaska.
Huh. So, let’s examine this. As the mother of a small daughter, I spend a lot of time negotiating the ins and outs of the world with her; the good vs. bad, the necessary vs. unnecessary. I can’t even explain Gov. Palin’s logic to my 6 year old.
The very basics of cap and trade are as follows:
- Companies apply for emissions permits, from a governing body, wherein their pollutants are “capped” as a specific amount.
- If they pollute more than this cap, they must PAY for credits/allowances to do so.
- If they reduce their emissions, they can SELL their allowances for a profit.
Therefore, there is a marriage of market-based and environmental resolutions that start the process of controlling and reducing global warming pollution. Companies have incentives to do the right thing (stopping their polluting of the environment) and we, as consumers, benefit from the reduction of pollution in our society. We also benefit from the cost savings generated by the distributions of the profits and energy efficiency measures created by this system.
While Alaska has abundant natural energy resources, fully depleting them to provide for the US population is hardly a solution. That is the equivalent of robbing Peter to pay Paul. Moreover, we should be investing in renewable energy sources.
Sarah Palin is wrong. I can easily explain that to my daughter.
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