Why do we need a carbon market? Why not just use regulations to force the companies to reduce emissions?
State regulation can set standards, promote certain technologies, or prohibit certain behavior. If the State could achieve its reduction goal through regulations alone, then there would be no need for a market. But most people believe a market will be necessary. If there is going to be a carbon market, it is in everyone s best interest to have a market that values the environment and the public trust. A well-designed carbon market can provide incentives throughout the economy for behavior that reduces carbon. A market can accomplish some things that regulations can t. For example, when the State mandated that cars emit fewer greenhouse gases (AB1493), Detroit sued. But, when gasoline prices went up, and consumers responded by buying high-mileage cars, Detroit had no choice but to make fuel efficient cars. A change in the price of gasoline accomplished what regulations could not. Carbon Share supporters believe that carbon market can be designed to provide the right price signals to red
