Sunday, October 18, 2009

The ETS sham

I've said it many times, as have others, and it needs to be said again, via ACT's newsletter to members on matters political:
The Government decided to press ahead with a revised ETS, introduced with the support of the Maori Party.

The Bill exhibits all the worst features identified by critics of ETS systems. Economists have long tended to prefer a carbon tax to an ETS, because the latter is likely to result in high compliance and administration costs, lack of transparency, massive lobbying for special treatment, corporate welfare, and market manipulation. Politicians are attracted to an ETS because it does not look or sound like a tax, although it is. Moreover, politicians can hand out the associated credits in a politically advantageous way.

The NZ ETS exhibits all these negative features. A large bureaucracy will be needed to manage it, and already the process of establishing the ETS is shot through with lobbying, unprincipled deal-making and divergent treatment of different economic activities. The intensity-based approach will strain the already formidable information and monitoring requirements of an ETS.

As the costs and subsidies become reflected in asset prices, the wealth transfers will become locked in, and politically difficult to change. The notion that, by turning up to the Copenhagen meeting as a world leader in having a legislated ETS, we can influence the world is simply pompous grandstanding. This conceit will be at the expense of New Zealand workers and businesses.

The deals are being done in the back room. It seems the price of support from the Maori Party to simply have the Bill introduced was to include a Treaty of Waitangi clause, to look again at past Treaty settlements, and to allocate carbon credits to iwi fishing interests. There will be more deals. It is obvious who has the leverage here the price to actually get this legislation passed will be high.

Meanwhile the government is congratulating itself for its pragmatism and moderation, due to there being a delayed entry and a gradual transition for various sectors. But the direction of policy is the crucial signal to investors. A gradual transition does not much help as far as jobs and investment are concerned. It is the destination that is the problem, and the signal to business is loud and clear. Invest elsewhere.

7 comments:

Redbaiter said...

"I've said it many times, as have others, and it needs to be said again, via ACT's newsletter to members on matters political:"

You call that pissweak piece of spineless drivel "saying it"??

That's ACT's whole damn problem. They never really say it. They just tap dance around the edges in politically correct Progressive paralysis.

Lord Monckton however, has the courage to say to say it how it should be said-

" I read that treaty. And what it says is this, that a world government is going to be created. The word “government” actually appears as the first of three purposes of the new entity. The second purpose is the transfer of wealth from the countries of the West to third world countries, in satisfaction of what is called, coyly, “climate debt” – because we’ve been burning CO2 and they haven’t. We’ve been screwing up the climate and they haven’t. And the third purpose of this new entity, this government, is enforcement.

How many of you think that the word “election” or “democracy” or “vote” or “ballot” occurs anywhere in the 200 pages of that treaty? Quite right, it doesn’t appear once. So, at last, the communists who piled out of the Berlin Wall and into the environmental movement, who took over Greenpeace so that my friends who funded it left within a year, because [the communists] captured it – Now the apotheosis as at hand. They are about to impose a communist world government on the world. You have a president who has very strong sympathies with that point of view. He’s going to sign it. He’ll sign anything. He’s a Nobel Peace Prize [winner]; of course he’ll sign it."

..and Key too will of course sign it, because like most NZers, he's a brainwashed politically unaware dipshit who will sell this country's sovereignty to curry favour with a crowd of charlatans, communists and crooks just because he thinks they're fashionable and because he foolishly desires their "respect".

Stupid grinning pandering spineless bimbo.

Gooner said...

Go to bed RB and wake up in two weeks. You need the rest.

dad4justice said...

Well said red, ACT are a fashion party that suit the colour yellow.Gutless wimps give me the screaming shits. Just ask big blouse.Haha.

erikter said...

You must call a spade a spade: the ETS will be terrible for New Zealand, and will become legislation thanks to the spineless Key government and its minions.

The duplicitous National Party strikes again.

Falafulu Fisi said...

I like to see those idiots/fuckers (politicians, warmists, greenies) who believe in climate AGW prediction to put their money where their mouth is by betting on Weather Derivative instruments. Go on, you can buy & trade them in various markets, such as Weather Bill. Hehe, but the reality is, those fuckers really don't have faith in the IPCC predictions or otherwise the weather derivative markets will be overwhelmed by them (warmists) in trading those instruments. They should be millionaires by now if they seriously do believe AGW climate predictions.

I bet that even John Key himself as financial market guru, won't trade or even touch weather derivatives despite being personally advised by scientists at NIWA with their newly bought multimillion dollar supercomputer (to used for climate modeling).

This is in direct contrast to financial market modelers & physcists at the profitable & successful hedge-fund Renaissance Technology, where they put their money in what the believe, ie, their models. WHY? Because they win more often (and big time to the tune of more than a billion) than they lose. They are the darling of Wall-St, because of their high success rate in beating the market.

Renaissance Technology hasn't traded in the weather derivative markets yet, and I suspect that they may have developed proprietary climate models where their findings is opposite to that of the IPCC (ie, non man-made warming), but perhaps they're just waiting to see more suckers being lured to the derivative markets, and they then jump in to exploit those suckers by, since it is predictable to know that those suckers will be following the IPCC AGW. My last point is only speculation, but I wouldn't be surprised if Renaissance is just waiting for the weather derivative & carbon emission trading market to mature.

Anonymous said...

A good way to test the GW theory is for countries to decide NOT to pay anyone, anything but decrease the carbon emission's anyway and give an undertaking to do so. Without the transfer of money to satisfy the "warmers" the whole scam would die.
Remember it used to be 'Global warming' - give us your money, give us your money and when that was disproved by the weather the push became 'climate change'-give us your money, give us your money.
Wankers!

Lucy said...

Love that man! (Lord Monckton)