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How You Can Profit From The EPA’s "Cap and trade" Program

By Thomas J. Crane

Yes, ladies and gentlemen, you too can profit from the United States Government's apparent entry into the financial market by way of the Environmental Protection Agency's "cap and trade" emissions trading program.  Why leave it to politicians, bureaucrats and lobbyists to make the "easy" money when you can have Uncle Sam work for you?  Just think, no more dirt under the fingernails or sweaty brows.  No more assembly lines or working long days down on the farm.  Forget about inventing things or being productive.  Leave the dirty work for someone else.  After all, aren't you special, too?  You too can enjoy fancy restaurants, big cars and vacations in exotic places just like the others.  "If you can't fight ‘em, join ‘em."  With just a little effort and the help of the EPA, you too can call yourself a "market-creating entrepreneur" or "venture capitalist" just like some of the "Big Wigs."

If you think that I am kidding, and I am not, just read the following:

According to the "Environmental News Network" in an article dated Wednesday, December 05, 2001,  and titled, "Trading for clean air just got easier," the following comments were made:

1.  "Anyone anywhere in the world can participate in the emissions trading market, and hundreds of companies, brokers, and individuals are already engaged in trading."

2.  "Emissions trading in the United States has its origin in the Clean Air Act, the landmark legislation that was enacted by Congress in 1970 and revised in 1990.  The 1990 Clean Air Act sets specific pollution targets and deadlines for states, local governments, and business."

3.  "The EPA says that emissions-cap-and-trade programs ensure that environmental goals are met, while providing companies an alternative to the installation of costly pollution control technologies in complying with the law."

4.  "Controlling emissions is expensive for industries required by law to clean up.  The closer they get to meeting strict antipollution standards, the more expensive it becomes.  If they can purchase emissions allowances from newer, cleaner power plants, they can delay or avoid installing costly new equipment."

Now comes the good part on how you too can make "easy" money from this program without doing anything except picking up your phone, and I will tell you how to do it, but first:

In an article published by the "Reason Public Policy Institute" dated October 23, 2002, and written by Lynne Kiesling titled, "CO2 Emissions Trading, The Coase Theorem, and Creating New Markets,"  the following comment was made, "Creating markets for emissions trading is a powerful way to decrease transaction costs.  An important part of reducing transaction costs is the definition and enforcement of property rights, so that a company with a right to emit 50 tons per year can trade away some or all of that right, and will be held accountable for the amount that it does emit.  So if it can make more money by selling the right than using it, it can sell it and reduce its emissions."

Now this is where the fun part begins.  The Federal Government has actually allowed the setting up of emission exchanges or "middle-men" or "middle-women" to handle these trades.  Ms. Kiesling goes on to say,  "Technically speaking, this collaborative process endogenizes the property right definition process.  They (The Big Wigs - my comment) will set rules for changing the cap, which will create security and certainty of the property right.  That security reduces transaction costs, leading to increased trade and the creation of value."   And that last word, "value" means MONEY!   Hallelujah!  Thanks to the EPA; now we are all going to get rich and for doing nothing more than just trading emissions.

So, the first thing that you will want to do is pick up your phone and call your Congressman or Congresswoman and ask him or her for a list of companies that want to sell emissions and those that want to buy emissions, because you want to act as the "Go-between."  The best part is that in order to ensure that the market never fails, the EPA has stated that within the next few years, the emissions requirements are even going to get tighter, and that means that the tighter they get the more they will be worth.  In other words, the EPA is influencing the market price by driving the cost of emissions upwards.  How better can it get than a guaranteed increase in the cost of a product; that is, dirty old smoke that is only going to go to waste anyhow so why not make a profit off of it?  Our motto, "We accept dirty money even if it is covered with soot."

One last thing, while you have your State Representative on the phone, ask him or her how many emissions credits are traded off to "Big Industry" for the Automobile Emissions Testing Program.   In other words, is the Auto Emissions Program being used as "cap and trade" for certain industries?  That is a good question to ask just to see what kind of a response you might get.

As they often say, "Only in America."

Thomas J. Crane

Calumet City, Illinois  

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