Monday, January 15, 2007

The Heat Is On

This could... COULD... be huge if it is true. At minimum, Bush admitting that global warming is occuring and is caused by man would be a sizable first step.

The real question is whether or not they implement any meaningful reforms. The EPA's change in the evaluation of car MPG could be another first step towards enforcements. Each maker is required to meet certain CAFE standards, average fleet MPG. The new EPA test criteria is going to lower the rating on just about every car on the market, lowering each manufacturer's CAFE rating. The next step here will be to eliminate the exemption for "light trucks." A category that includes all passenger pick-ups and SUVs.

An industrial cap-and-trade system would be the first step I would expect. It has been very effective in eliminating other pollutants such as sulfer in the U.S. and is in use in Europe now for carbon dioxide. The effectiveness, of course, will be in the details. What are the target emmission levels and the target dates? Any legislation would also have to get past some very staunch, reality-challenged legislators. James Inhofe immediately comes to mind.

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