The UK government was under fire today for "undermining" the European Union's fight against climate change by auctioning off carbon allowances for the first time and not earmarking the cash for "green" projects. Around four million permits are being distributed today under a new phase of the European Union's (EU) emissions trading scheme (ETS) with expected receipts of up to £60m going to the Treasury for general spending purposes."The policy of the UK government on this issue undermines the very purpose of the EU ETS... Auctioning undermines this flexible mechanism as it takes money away from those who can do something about climate change, the emitters, and it gives it to those who can't, the politicians," said James Emanuel at emissions trading broker, CantorCO2e.The Institute for Public Policy Research (IPPR) said ministers should change their mind and use the cash specifically for projects such as improving energy efficiency of homes, investing in low-carbon technologies and helping poorer countries cope with climate change.
The UK government was under fire today for "undermining" the European Union's fight against climate change by auctioning off carbon allowances for the first time and not earmarking the cash for "green" projects.
Around four million permits are being distributed today under a new phase of the European Union's (EU) emissions trading scheme (ETS) with expected receipts of up to £60m going to the Treasury for general spending purposes.
"The policy of the UK government on this issue undermines the very purpose of the EU ETS... Auctioning undermines this flexible mechanism as it takes money away from those who can do something about climate change, the emitters, and it gives it to those who can't, the politicians," said James Emanuel at emissions trading broker, CantorCO2e.
The Institute for Public Policy Research (IPPR) said ministers should change their mind and use the cash specifically for projects such as improving energy efficiency of homes, investing in low-carbon technologies and helping poorer countries cope with climate change.
This is worse than it looks, because the Right in the UK is already convinced that climate change only exists as an excuse to raise taxes.
So if carbon permits are used as general taxation and not as funding for green investment - that's not only politically idiotic, it's criminally irresponsible.
But using this to plug holes in the budget is not going to be very popular.
There is a lot to be said for shifting taxation from labour to pollution.
Absolutely true. Sadly, there's more to be said for constructing new and improved, complex structured securities and exchanges for their sale. ...especially in light of "pent up demand" (or "idle money") the business press ascribes to the current so-called asset price deflation SPIRAL. Free marketers aren't even close to coupling hard assets to money supplied by "independent" central banks. Are they? I may have missed that discussion at TEH SUMMIT, and I've had trouble detecting "expert" opposition to "cap and trade" claims to Keynesian benefits.
Meanwhile ... | Bloomberg | 19 Nov 2008
The benefit [?1] of the drop in prices can be seen in its effect on incomes. Today's figures also showed wages increased 1.4 percent after adjusting for inflation [?! a negative MoM rate?!], following no change in September. They were still down 0.9 percent over the last 12 months. The decline in purchasing power is contributing to the slowdown in consumer spending. Retail sales fell 2.8 percent last month, the most on record, Commerce Department figures showed last week. Mounting job losses and record foreclosures are causing American consumers, who account for more than two-thirds of the economy, to retrench [how subtle]. Wal-Mart, the world's largest retailer, said yesterday it planned to reduce U.S. prices on Thanksgiving food and Christmas merchandise to lure customers during the holidays. Price 'Rollbacks' [Wal-mart brand tag until, uh oh, this summer] "You'll see a lot of rollbacks," Eduardo Castro-Wright, Wal-Mart's U.S. stores chief, told analysts at a Morgan Stanley conference in New York. Rollbacks refer to price reductions the retailer scatters throughout grocery, pharmacy and other departments to spur sales. Target, the second-largest U.S. discounter, said this week it plans to add grocery items and offer "sharper" discounts to draw shoppers who are shunning jewelry, clothing and home goods, which account for more than 40 percent of its revenue. "Right now, the consumer is very hesitant," Chief Executive Officer Gregg Steinhafel said during the company's Nov. 17 earnings call. "They're very stressed." Sales of clothing and home goods have been "sharply lower," partly because of banks decreasing consumer credit limits [?!], Chief Financial Officer Douglas Scovanner said during the call. Leaders in the U.S., Europe and Asia are calling for increased government spending to make up for the loss of consumer purchasing power [i.e. "disinflation" or post-Phillips "stagflation" epithet or, simply put, deflation and employment destruction] and lessen the global recession.
Retail sales fell 2.8 percent last month, the most on record, Commerce Department figures showed last week. Mounting job losses and record foreclosures are causing American consumers, who account for more than two-thirds of the economy, to retrench [how subtle].
Wal-Mart, the world's largest retailer, said yesterday it planned to reduce U.S. prices on Thanksgiving food and Christmas merchandise to lure customers during the holidays.
Price 'Rollbacks' [Wal-mart brand tag until, uh oh, this summer]
"You'll see a lot of rollbacks," Eduardo Castro-Wright, Wal-Mart's U.S. stores chief, told analysts at a Morgan Stanley conference in New York. Rollbacks refer to price reductions the retailer scatters throughout grocery, pharmacy and other departments to spur sales.
Target, the second-largest U.S. discounter, said this week it plans to add grocery items and offer "sharper" discounts to draw shoppers who are shunning jewelry, clothing and home goods, which account for more than 40 percent of its revenue.
"Right now, the consumer is very hesitant," Chief Executive Officer Gregg Steinhafel said during the company's Nov. 17 earnings call. "They're very stressed."
Sales of clothing and home goods have been "sharply lower," partly because of banks decreasing consumer credit limits [?!], Chief Financial Officer Douglas Scovanner said during the call.
Leaders in the U.S., Europe and Asia are calling for increased government spending to make up for the loss of consumer purchasing power [i.e. "disinflation" or post-Phillips "stagflation" epithet or, simply put, deflation and employment destruction] and lessen the global recession.
This story isn't about seasonality. It began over 18 mons ago with market saturation of same-store consumer credit contracts such as "0 down, 0 interest for 1 year" in home furnishing/improvement sectors. The Big 3 started a GMAC-unfunded price war two years ago. 10 years ago, more or less, financial services firms got Gramm-Leachey. Market failure is now spread into non-durables sectors where operating capacity and market expansion where profit-centers never existed -- firm-level competition within a sector for any income to service debt incurred and rolled-over at variable --not fixed-- rates (PPI) over the same period. This is the logical conclusion to the "loss leadership" rationale of entrepreneurial opportunity.
Retail price discounts like "redeemable loyalty rewards" and not unlike mark-to-market securities valuations are a GAAP balance sheet component (loss reserve, current or long-term liability, depending on coupon expiry) and P&L component (GA or marketing expense). The greater the value and duration of "discounts," the greater the obligations imputed to ("impairment" of) future income and market cap.
This story, this "price level stability" problem of fiscal remedy married to unregulated product or labor markets, is so 1900-1934 (including The Great War stimulus package). Wankers.
Consumers will NOT get deficit dollars to subsidize their switching costs simply because their representatives are absolutely committed to preserving a finance economy -- microeconomics of "from whom shall I borrow money and at what interest rate?" since I own no productive property except my body. Sorta. Diversity is the key to economic and political evolution.
