Who ever would have thought…

that a well meaning but inane Green Scheme would produce weird outcomes.

Say you earn one carbon credit by eliminating one ton of carbon dioxide, but you get more than 11,000 credits by simply destroying a ton of an obscure waste gas normally released in the manufacturing of a widely used coolant gas.

That incentive has driven plants in the developing world not only to increase production of the coolant gas but also to keep it high.

So since 2005 the 19 plants receiving the waste gas payments have profited handsomely from an unlikely business: churning out more harmful coolant gas so they can be paid to destroy its waste byproduct. The high output keeps the prices of the coolant gas irresistibly low, discouraging air-conditioning companies from switching to less-damaging alternative gases. That means, critics say, that United Nations subsidies intended to improve the environment are instead creating their own damage.

Carbon trading has become so essential to companies like Gujarat Fluorochemicals Limited, which owns a coolant plant in this remote corner of Gujarat State in northwest India, that carbon credits are listed as a business on the company Web site.

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8 Responses to Who ever would have thought…

  1. tbh

    Government interfering in markets causing unintended consequences, who’d have thunk it!

    Freddy Hayek was right:

    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.”

  2. tbh

    Actually the rest of the quote is even more telling:

    “To the naive mind that can conceive of order only as the product of deliberate arrangement, it may seem absurd that in complex conditions order, and adaptation to the unknown, can be achieved more effectively by decentralizing decisions and that a division of authority will actually extend the possibility of overall order. Yet that decentralization actually leads to more information being taken into account.”

    Governments don’t understand markets and how their decisions very often lead to the opposite of what they intend.

  3. Biota

    I don’t believe there is such a thing as a well-meaning green scheme.

  4. brc

    So Austarlian businesses will be charging customers more, so they can buy carbon credits from obscure indian companies, who manufacture gases so that they can destroy them and get a credit for it.

    This is going to save the planet, apparently.

  5. handjive

    And, so we see the vision of the Gillard-GreenLaboUr clean green energy future:

    The great carbon credit con:
    Why are we paying the Third World to poison its environment?

    In the fields around this giant chemicals factory in Gujarat, the barren soil smells of paint stripper and the water from the well makes you gag.

    So why has it been given tens of millions of pounds of taxpayer-funded UN ‘green reward points’, which are traded hungrily on the financial markets at huge profit?

    Meanwhile…

    In China, the true cost of Britain’s clean, green wind power experiment:
    Pollution on a disastrous scale

    Not to worry.
    Gillard- GreenLaboUr and the rest of the environazis have a programme to ‘save’ the planet:

    Tens of millions of pounds of UK aid money have been spent on a programme that has forcibly sterilised Indian women and men.

    Across the country, there have been numerous reports of deaths and of pregnant women suffering miscarriages after being selected for sterilisation without being warned that they would lose their unborn babies.

    Yet a working paper published by the UK’s Department for International Development in 2010 cited the need to fight climate change as one of the key reasons for pressing ahead with such programmes.

    The enviro-pogrom has started, and it’s coming to a city near you.

  6. Winston SMITH

    You’re right handjive, but the really distressing part is that the Left cannot see that they are the oppressors here.
    The lack of insight here is truly frightening.

    “… that peculiar blind spot on the Lefts moral retina.”

  7. H B Bear

    The more you see of the UN in action, the more I feel it needs Kevin Rudd.

  8. Borisgodunov

    The old ruddster wold fit into the untidy nashuns like a hand in a glove!
    Birds of a Feather ,how do you say “a pack of self important ,greedy useless tertiary educaredtossers” would “a Pack of Wankers ” be enough? Im open to suggestions!

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