Edwards Plans to Lessen Pollution?

This article explains Senator Edwards’ call for new emissions limits that he delivered in Nevada at the end of March. He, like many, is concerned with global warming and pollution. In his plan, Edwards makes many suggestions about how to minimize these harmful emissions. One idea he has is to eliminate $3 billion in subsidies to oil companies. This doesn’t seem like a good idea. Subsidies are generally issued to companies so the companies comply with some terms. In this case, the oil companies are probably producing fewer emissions because of the subsidies they receive. If these are eliminated, the oil companies will have incentive to create more pollution. Another idea Edwards suggests is to create a fund to develop new energy sources with money accumulated from selling greenhouse pollution permits. Again, this step to help eliminate pollution seems to be in the wrong direction. His plan to help decrease emissions is to sell more permits allowing it? Our text book admits that the biggest problem with tradable permits is that the government usually ends up issuing too many. Had Senator Edwards used the Pigouvian approach, he might have suggested an emissions tax on the major polluters.