What is the possibility of carbon credits causing a carbon market bubble?

[seattlegal]

From this post:

Thank you.

I'd like your opinion on the worry regarding the Chinese hydroelectric projects creating a "sub-prime" carbon-credit market," and the horror over the idea that this might lower green energy prices? (The carbon credit system is designed to keep green energy prices high.)
China hydropower subprime carbon flood may slow | Reuters

More on subprime carbon credit trading and a possible "carbon bubble":
http://www.foe.org/pdf/SubprimeCarbonReport.pdf

I'd like some feedback on this. I get the feeling that this carbon credit trading scheme was designed to keep green energy prices high. What is the possibility of a subprime carbon credit bubble developing, and escalating the world's financial crisis? Keeping green energy prices artificially high certainly won't help the earth.

Thoughts?

 

[wil]

From this post:

I'd like some feedback on this. I get the feeling that this carbon credit trading scheme was designed to keep green energy prices high. What is the possibility of a subprime carbon credit bubble developing, and escalating the world's financial crisis? Keeping green energy prices artificially high certainly won't help the earth.

Thoughts?

I see it as a game. The powers that be have created yet another income stream that will benefit the upper echelon and paid by the lower echelon.

Big company A you pollute....but you also own big company B, who guarentees which harvests trees and you guarantee you'll never build buildings there and actually just continue your clear cutting and replanting operations as you have forever. So you have carbon credits to sell. B sells to A, A charges more money for its products because by law it now has to pay B and so does everyone else in the industry and we can all justify a raise in the price of widgets.

We pay more for widgets. They reap the profits. Nothing changed. Just like Homeland Security. The role of law enforcement changed very little, it is just that they moved folks to HS and charged the taxpayers...for both their regular budget and their new HS budget...new bonus vehicles, more OT, drive your car home and get paid by a highway contractor to nap on the side of the road with your engine running at the taxpayers expense....

tis a system.

 

[iBrian]

I've seen suggestions in the financial press a while back that "green" energy companies are definitely on the radar and could definitely be the source of an investment bubble.

In the meantime, though, these companies are also suffering under the current economic conditions. While there's room for future growth, they do seem reliant on government initiatives to provide opportunities for growth and development, rather than general private expansion.