Most greenfolk have some knowledge of cap-and-trade, I would suppose.
That's where government's put a cap on how much carbon-based pollution can be produced by a particular kind of company... and if a company exceeds their limit, they must pay for the right by purchasing carbon credits from companies producing less than their limit.
The problem with this plan - one of the potential pitfalls - is that it could raise prices for consumers over the long haul on certain products. Obama's budget has an ingenious solution: the excess carbon credits and the revenue they would generate would be given back to the American public in the form of tax refunds.
In some cases, people would receive more in refunds than they paid in increased costs, meaning you might pocket a little money on this (ironically, who wants to profit from excess carbon pollution?).
Anyway, great article on this in BusinessWeek:
Wednesday, March 11, 2009
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