Archive for Carbon market
As the economic squeeze tightens, retailers, manufacturers and ultimately energy producers are experiencing a lower demand for their products. Less production means less pollution, which has to be a good thing, right?
Wrong. The trouble lies with the fact that we’re currently using two distinct currencies, money and carbon. In the good times, if that’s really what they are, the two work well together: demand drives prices of both production and the right to pollute. As production expands, the market for the limited and finite carbon permits heats up, pushing their price up. This in turn raises manufacturing costs, providing a steadying influence on the financial economy. Read the rest of this entry »