Cap and Trade In Virginia

 The New York Times columnist Paul Krugman recently wrote about President Obama's cap and trade program aimed at reducing green house gases and slowing the pace of global warming. Krugman, a self described 'card carrying economist', correctly pointed out that cap and trade policies would increase costs to consumers. The question: Is that a good thing in the long run for the people of Virginia who care about their environment today and for the future?

When all things are said and done, I think that the answer has to be yes. 

But just what might the cost of a cap and trade program be to Virginia's consumers and why would there be a cost at all? Krugman's article doesn't go into dollars and cents, but because cap and trade would cost the energy companies doing business in Virginia money, they would naturally pass that cost on to us.

Most of Virginia's energy is produced by power plants fueled by coal, one of the dirtiest fossil fuels around. According to the U.S. Department of Energy, 44 percent of the electricity generated in Virginia comes from coal.  And power plants that use coal are more likely to be affected by limits on carbon emissions, aka global warming gases, and be big users of any cap and trade system.

So, what's the possible cost to Virginia's nearly three million households? Difficult to determine without more information about the cost of the cap and trade product in the market. But one thing is for sure, the cost is not going to be as onerous as some would argue. Look, we managed through $4/gallon gasoline last summer. 

Virginians are a tough and resourceful bunch and we love our green space throughout the state.  According to the state government, about 13 percent of all land in the commonwealth has been set aside to remain verdant, green, healthy -- for all of us to appreciate, use, and steward into the future. And more is being set aside each year.

Keeping an eye on how we use energy and what the providers of energy do to get it to us -- is it clean and renewable and generated with an eye to all of our futures -- is important.