Here is another article written by a local writer:
http://www.insidebay...ction-sells-out
It looks like the whole thing was a huge success. From what I read the biggest fear was investment firms (banks, specifically) would buy up the majority of the credits and then resell them for a profit. According to state statistics, 97% went to the companies in the industries that they were intended for.
There was also a fear that companies would hold back hoping the lawsuit brought by the Chamber of Commerce would succeed. But, that does not seem to be the case.
They are not saying which companies participated. PG&E did agree to speak to reporters. They did buy credits and they said they were pleased with how everything went. Also, a food manufacturer bought credits, and that was surprising because food companies weren't on the first list of those needing to buy credits.
The credits went for $10.09 per ton of carbon. The state paid 90% of that fee in the first auction (it will decrease it's portion considerably with each auction until they do not subsidize it at all.)
The money will go towards updating government buildings and utility customers will receive a $30 rebate twice a year from the money made through the program.
So, it looks like everything went as planned. Even with the chance that the computers might have glitches or questions would arises that they couldn't answer, it looks like the problems were minimal. Now, it will be interesting to see how much trading goes on and who stands to profit. California gets a thumbs up on the first round!
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2
Does Cap and Trade cost jobs?
Started by FamilyTreeClimber, Nov 10 2012 12:56 AM
26 replies to this topic
#23
Posted 20 November 2012 - 02:50 PM
I am really hopeful that the successful integration of Cap &Trade in California will spur other states to follow suite. Lets face it California is not the only place with air pollution and emission issues. As with so many grass roots movements, it seems states will have to start the ball rolling and hope the federal government follows.
Utilites and polluters will claim it causes job loss, but this is just the usuall business speak for billion dollar corporations working to maximize profits through fear tactics. Lets face it we need action on these issues and if we left it up to a lot of the mega corps, nothing would ever get done. History has showed that some mega business will sell their souls and our futures and health for profits unless someone says enough.
Utilites and polluters will claim it causes job loss, but this is just the usuall business speak for billion dollar corporations working to maximize profits through fear tactics. Lets face it we need action on these issues and if we left it up to a lot of the mega corps, nothing would ever get done. History has showed that some mega business will sell their souls and our futures and health for profits unless someone says enough.
#24
Posted 21 November 2012 - 01:07 AM
E3, I am hopeful about this. The fact that there were no protest, whining, or complaining before or after the first auction by business owners tells me that many are ready to accept Cap and Trade. We will know if it is successful in time. In some ways, it feels good that at least someone is trying something. That first step is sometimes the most the difficult. It has been floated around at the Federal level since the mid-1990s. The political climate is too rough right now, but who knows what 2014 will bring.
You are right that this must spread or more ideas must be implemented. California can't clean up the atmosphere by itself. We don't produce all the emissions alone. But, you have to start somewhere. I have heard that Oregon and Washington are watching what happens as they want to implement something similar. The only problem is how long it takes to put something like this together. It took California 6 years from passing the law to implementation. I would hate to think that another state won't be on board until 2018!
We must all remember that it was a Republican Governor working with a Democratic state legislature that got this done. These are issues that affect us all--they are not partisan. It seems there is a lot at stake with this one venture, so let's hope it is successful.
You are right that this must spread or more ideas must be implemented. California can't clean up the atmosphere by itself. We don't produce all the emissions alone. But, you have to start somewhere. I have heard that Oregon and Washington are watching what happens as they want to implement something similar. The only problem is how long it takes to put something like this together. It took California 6 years from passing the law to implementation. I would hate to think that another state won't be on board until 2018!
We must all remember that it was a Republican Governor working with a Democratic state legislature that got this done. These are issues that affect us all--they are not partisan. It seems there is a lot at stake with this one venture, so let's hope it is successful.
#25
Posted 25 November 2012 - 11:50 PM
There was a news story that I can't find a link to that you all might find interesting. They reported on the results of the Cap and Trade auction. The auction was a huge success. But, that same success made it a failure.
The problem is that the state miscalculated on how many credits to put on the market in the first auction. I don't fully understand how this works but they put too many credits up for auction which drove down the price. They were hoping to make close to $1 billion, but only made something like $55 million. They sold all the credits but because demand was so high the price dropped to the $10+ per credit. This price was far lower than they estimated. I had thought they set the price on the credits, but that is not the case.
It isn't going to doom the auctions, though. They have assessed this shortcoming. Next time they will make less credits available.
It's a live and learn experience, I guess. The credits were more popular than they anticipated and they ended up selling far lower than they expected. So, next time, we will have to see how it goes. I guess it is a good thing that there was so much interest though.
The problem is that the state miscalculated on how many credits to put on the market in the first auction. I don't fully understand how this works but they put too many credits up for auction which drove down the price. They were hoping to make close to $1 billion, but only made something like $55 million. They sold all the credits but because demand was so high the price dropped to the $10+ per credit. This price was far lower than they estimated. I had thought they set the price on the credits, but that is not the case.
It isn't going to doom the auctions, though. They have assessed this shortcoming. Next time they will make less credits available.
It's a live and learn experience, I guess. The credits were more popular than they anticipated and they ended up selling far lower than they expected. So, next time, we will have to see how it goes. I guess it is a good thing that there was so much interest though.
#26
Posted 26 November 2012 - 04:26 AM
FamilyTreeClimber, on 25 November 2012 - 11:50 PM, said:
There was a news story that I can't find a link to that you all might find interesting. They reported on the results of the Cap and Trade auction. The auction was a huge success. But, that same success made it a failure.
http://www.huffingto...=green&ir=Green
#27
Posted 03 December 2012 - 12:34 AM
One of the California newspapers did a follow up on Cap and Trade. There is a really nifty, easy to understand chart on how the program works. I appreciate it since it's taken me awhile to fully understand how Cap and Trade will work. It looks like it is modeled after the European Union's Cap and Trade program.
http://www.insidebay...s-cap-and-trade
There is a debate amongst those who are watching nationwide over the cost of the credits. Some say the price at auction was too low, making this a failure. Others say the fact that they have now put a price on carbon makes it a success in and of itself. I'm not really clear on who set the price or how that works. I know several people on this forum have talked about the necessity of putting a price on carbon.
http://www.insidebay...s-cap-and-trade
There is a debate amongst those who are watching nationwide over the cost of the credits. Some say the price at auction was too low, making this a failure. Others say the fact that they have now put a price on carbon makes it a success in and of itself. I'm not really clear on who set the price or how that works. I know several people on this forum have talked about the necessity of putting a price on carbon.
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