Jophiel wrote:
Hey, I make widgets. Under the worst of circumstances, manufacturing a widget produces 10 units of pollution. Whether that pollution is coming from a powerplant smoke stack or truck exhaust or out of ACME Widgets doesn't matter. Current US pollution controls bring that down to 7 units. But wait! Oh no, Cap & Trade! Rather than do the 5 units, I run off to found ACME Somalian Widgets, Inc knowing that no one in the Somalian government cares what I do. So now I'm producing 10 units again. Again, it doesn't matter if this is coming from Mogadishu Gas & Power or from my factory -- there's a finite power cost (and thus pollution cost) to manufacture a widget.
So I'm now adding 3 more units of pollution per widget than I was in the US. Horror! But wait! Amalgamated Doodads and United Thingies both stay in the US and, combined are producing 4 units per item less than they used to for a net of -1 unit of pollution per item made. Planet Earth is saved!!!
Now who's making up numbers? The companies who continue to produce inside the US will be unlikely to reduce the pollution per unit of production much. The US laws are already incredibly restrictive. You might see a couple of percentage points reduction in per-unit pollution. Maybe.
The bulk of the reduction of total pollution will come about as a result of industry simply leaving the US. Period. If the target goal is to reduce total greenhouse emissions in the US by 17%, then it'll be accomplished by nearly 17% of the productivity which currently generates greenhouse gases moving elsewhere. The effect of that shift on
global greenhouse gas emissions should be obvious...
Do you honestly think that we have cheap anti-pollution technology just lying around and we've just chosen not to use it? The EPA passes the most stringent regulations it can on our industries, and the only thing preventing them from being more stringent is the economic costs of doing so. We're literally being as clean as we can afford to be. If the EPA thought they could impose more restrictive rules on US industries without those industries simply leaving, they would have done so. Heck. Many believe that our current pollution laws are already too strict and have hurt us in this area. This is just more piled on top of that.
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The truth is, you have absolutely no idea how much manufacturing would move anywhere. None.
You're right. I don't know exactly how much would move. However, I can say with absolute certainty that more will move away than will choose to reduce their pollution rates to meet the new requirements. It's pretty obvious economic reality.
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Don't even pretend because you're fooling no one. Even with increased production costs, moving your manufacturing overseas doesn't just automatically make sense. That's ignoring pollution producers that can't be moved in the first place. The largest anthropogenic producer of greenhouse pollution in the US are power plants. Have fun relocating your power plant in India. Bring lots of extension cords.
Sure. That's pretty immovable and pretty inelastic. Which is why a whole lot of other stuff will end up moving. Unless the same folks pushing for cap and trade also wish to loosen their stance on nuclear power and building new cleaner coal plants?
The point is that cap and trade doesn't require any pollution levels. It allows polluters to buy their way out of it. It's pretty obvious as well that industries which can't move (like power) will just buy carbon credits and pass the expense on to the rest of us.
Which is one of the reasons why Conservatives just view this as a tax program. What reductions we do get will mostly come from industries moving and those which stay will just pass the costs on to the consumers. Net effect is that we just pay more for stuff and lose more jobs.
Doubleplusgood!
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Because it relies on numbers you're making up in your head and are (as usual in your arguments) demanding we accept as real despite (also as usual) a lack of any support beyond Gbaji insisting that it's really, really absolutely obvious! Gosh!
It relies on no numbers at all Joph. It relies on a common sense understanding of behaviors of players in a market. If you make operating more expensive in one locale, it'll increase the likelihood of moving. That requires no numbers to be true.