## Monday, July 30, 2007 ... //

### Carbon credits: below one European dime

If you haven't bought an iPHONE yet, you should try NeoPOD

Last time, we dedicated a special article to the price of carbon indulgences when the price dropped below one euro. Today, the 2007 allowance price closed at 9 eurocents.

It doesn't seem to matter that the price plummeted more than 300 times since April 2006: the net worth of the supreme prophet has skyrocketed more than 100 times in a couple of years anyway. The economics rules that control saviors of the world are somewhat unpredictable. ;-)

It is not clear to me what happens with the price of carbon debits when the price of credits goes to zero. At any rate, 2007 may be the last year when you may breathe relatively freely.

The graph under the words "300 times" above also shows the prices for 2008 allowances and 2013 allowances that are near 21 euro per ton in both cases. Of course that these prices will be dictated almost entirely by decisions of the bureaucrats. If they allow a lot of emissions, the prices will go to zero. If they impose genuine restrictions, the prices will be sent towards the actual price of the products one must sacrifice - and that's a very high price. Much higher a price than 21 euro per ton.

Recall that you may drive about 5000 miles with a car to emit one ton of CO2: see the data about grams per kilometer. Surely you would easily pay additional 21 euro for 5000 miles. In other words, the price of 21 euro per ton wouldn't have any discernible impact on your driving. There exist larger emitters who are influenced more but be sure that at 21 euro, the impact will still be small.

This whole game may look like a market but it is not a market because it is all about the central decisions.

And that's the memo.

P.S. You may want to order the Warming Swindle DVD for 8 pounds.