How about an "energy efficiency" market?

Did I mention that CTV just handed me the 'green' beat? No? Well, now you know. In addition to be covering some defence-related procurement issues, some ongoing issues at the federal departments of Finance, Industry, and Public Works, I'm now going to be covering the federal departments of the Environment (prop. Mr. John Baird) and Natural Resources (prop. Mr. Gary Lunn). My political beat continues to be the national Conservative caucus.
Speaking of which — some Conservative ministers speak of their policy focus as 'Triple-E' — as in Energy, Environment and the Economy. And, since the most important reason for this blog's existence is to act as my online notebook, you will notice or will soon notice more items here with a triple-E flavour.
And with that, here is something that, to me, is a new idea: An Energy Efficiency Trading System
Lisa Margonelli of the New American Foundation writes about it at washingtonpost.com:

…Utilities and vehicle manufacturers that can't meet their targets can buy “efficiency credits” from the government, or from other companies. And companies that exceed their targets can sell the credits they generate.
Rather than dictating how companies meet their goals, this strategy allows the market to decide the best mix of efficiency and price. Big pick-up trucks, for example, may cost more simply because the manufacturer has to “pay” for their inefficiency. Will the new trucks be worth the price? That's up to consumers, and the market, to decide. This isn't 1970's command and control regulation, with its forced downsizing. The goal is to change the competitive focus of auto makers, utility companies and manufacturers to work creatively to use less fuel, rather than expecting society to pick up the costs of their waste.<

Technorati Tags: Environment, energy