To: Lizzie Tudor who wrote (99114 ) 5/28/2007 8:05:43 PM From: Brumar89 Respond to of 173976 Carbon "Offsets" The idea of a "carbon offset" is that when you do something that causes carbon dioxide emissions to increase you might at the same time donate money to a cause that reduces atmospheric carbon dioxide by a similar amount. However, not all "carbon offsets" truly offer the sort of straightforward one-for-one trade that the term "offset" implies. Some of the "carbon offsets" are nothing but pork-barrel subsidies to energy producers, and their net effect on carbon emissions is problematic.Subsidizing "good" energy in order to justify using "bad" energy is like eating salad in order to justify eating dessert. It is an exercise in self-deception. (In this context, good energy means energy that is produced with little or no emission of carbon into the atmosphere.) For example, consider a "carbon offset" that consists of a subsidy to good energy. As The Economist blog points out, just because energy-user A gives energy-user B a subsidy to use good energy does not necessarily mean that energy-user B will reduce her own use of bad energy, or that her reduction will actually lead to reduced production of bad energy. All we know is that the subsidy to B's use of good energy will lead to price changes. These, in turn, depending on features of demand and supply in various markets, may reduce pollution by little or nothing. For example, at least part of B's response to the subsidy will be to increase her total energy consumption rather than merely substituting good energy for bad energy. Furthermore, her supplier of bad energy, faced with high fixed costs and low variable costs, may lower the price of bad energy in order to keep B's demand for bad energy at a high level. tcsdaily.com