Liberal Talk Radio

I tend to support Cap and Trade models for reducing greenhouse gasses. In a nutshell, here’s how it works: Companies in a specific industry get a set of “pollution credits.” If they pollute more than they’re allowed (the “cap”), then they have to buy more credits from competitors. If they pollute less than the cap, then they can sell their credits to their competitors. So it gives companies an economic incentive to clean up, otherwise they end up subsidizing their competition.

The idea has growing domestic support, and in fact it is a key component of the Kyoto Protocol. It’s even popular with American businesses who are forced to deal with Kyoto in Europe.

And yet, despite its inclusion in the Kyoto Protocol, many U.S. Environmental groups oppose cap and trade, for reasons I can’t quite fathom. Methinks it’s mostly to rile up their members and get more donations. The direct-mail campaign practically writes itself: “Bush & Co. want to use the Free Market to protect the Environment. We MUST STOP them. Contribute $50 NOW!”

But cap-and-trade is too smart an idea to go down that easily. A new venture called TerraPass offers what you might call “Personal Cap and Trade.” You buy an annual pass based on the car you drive and your annual mileage, and then TerraPass works to convert that money to renewable-energy projects that offest your car’s emissions.

For their next trick, I’d love to see them try and offset the other effects of oil consumption, and not just the greenhouse gasses. I’d love to buy a TerraPass that also weakens the Saudi Royal Family. A man can dream…