Carbon Credits Explained

Over the past 100 years the capitalist economy we live in has increased our way of living. It's also allowed us to make big technological advances. The free market has provided us with the tools to go across the world, to give us products beyond our wildest imagination and to create large cities. The free markets accurately reflect the supply & demand within our nations. They allow us to price everything to us most basic goods to our most advance technologies. Free markets effectively advocates our sacred resources to the things we value the most.

However despite all of our humanities achievements. capitalism fails to recognize the impact global warming has on earth due to carbon emissions. Since 1950 carbon emissions have risen over 300%. According to scientific study. Climate emissions by man are to blame for global warming. The increase in earth global temperature has had negative effects on the environment. It has melted the polar ice caps, destroyed wildlife habitats and has greatly increased the number and intensity of tropical storms. Global sea levels have risen 4-8 inches in the past century and global warming could eventually lead to an underwater Manhattan. So is it possible to use free market economics our primary tool to solve global warming our number one problem.

Currently folks have little motivation to change their life-style to help the earth. So why not use our money? Man-kinds most powerful motivation to generate change... Introducing Carbon Credits. Carbon credits are these finical instruments that represent a reduction of carbon emissions into our atmosphere. These carbon credits via a carbon tax place a monetary price on our populating activities. People can earn more on carbon credits because there is money/rewards to be earned by reducing co2 emissions. Also by trading these carbon credits we can lower and reduce carbon emissions by using the power of the capitalist market.

This is how a carbon tax works? Whenever oil is being burned it will release toxins into our atmosphere. A "limit" on certain carbon emissions will make companies want to use less pollution because it will cost them less. It will be in their best interest to reduce global warming via carbon emissions because it will produce a carbon tax for that particular business and the USA will break free of its oil addiction. The carbon cap will make sure we don't go over the limit and should set us on track to clean energy freedom.

So will carbon tax and carbon credits work? Many environmentalist like this idea of tackling there problem that their agenda have pursued for so long, but many economist don't think the economics add up. However some critics say its just a con by the industrialized western world to hold down the rising industrial third world countries of the 21st century (i.e. China, Brazil, India, etc.). Where as in these nation there's very little luxury of being able to go green in the third world.

Some industries have created a trading system to reduce global warming. The Chicago climate exchange is the world's first and North America's only active voluntary, legally binding trading exchange for carbon credits. With these small steps we can finally get on track to solving global warming by using carbon tax and carbon credits.

Carbon credits explained article by Bradon W