|
PureBytes Links
Trading Reference Links
|
> Being from Southern Cal I might know something about what's driving this.
> In the states, polluters actually pay the government for the right to
> pollute the air. For instance large energy conglomerates like Edison Corp
> actually pay for the right to pump out so much pollution per unit of air.
> Edison pays the government to legally emit carbon-based pollution when
> they generate electricity. Other large companies that pollute like Alcoa
> and Kaiser (there are lots of others) also pay. It's my understanding that
> just like electricity can be traded among companies, so can pollution
> space. In fact if Edison is anticipating a surge in demand, they will buy
> pollution rights from say Kaiser so that they can produce more energy
> without exceeding their pollution allotment. Thus a market is created and
> the need to hedge against price fluctuations is also created. I'm sure if
> they do it in America, they do in other places too. It would be nice to
> see a global air space created so countries that excessively pollute the
> global air space must pay up when it falls out in a different country.
>
> -----Original Message-----
> From: Tim McCaughey [SMTP:TimM@xxxxxxxxxx]
> Sent: Monday, August 30, 1999 4:44 PM
> To: omega-list@xxxxxxxxxx
> Subject: More interesting futures contracts
>
> After Mark Brown's mail about introducing a weather based contract I think
> the Sydney Futures Exchange has gone one stranger.
>
> "SFE chief executive Mr Les Hosking said the exchange's aim was to create
> a carbon trading market that was "truly global" and for Sydney to become
> the
> Asia-Pacific centre for the trade.
>
> The SFE's intention was to "securitise air", Mr Hosking said."
>
>
> http://www.afr.com.au/content/current/news/news5.html
>
> for more details.
>
>
>
>
>
|