I just saw this on the BBC . I have to say that as a pointy-headed leftie, I agree with those who think a straight carbon tax is the simplest and most effective way to go. But the carbon credit idea may actually be politically feasible, and it would be way better than nothing (and way, way better than the SUV subsidies the US currently has).
The idea is the same as corporate carbon trading. Everybody gets their allotment, those who use less can sell what they don’t need, and those who use more have to pay for it. The environmental part comes in because the allotments shrink over time to meet carbon reduction targets. Suddenly, there will be consumer pressure for devices that actually turn all the way off, for “moneymaking” cars, for public transportation. (Hyperventilates)
It’s worth reading the details. The concept started with David Fleming and “Tradable Energy Quotas.” (www.teqs.net)  The Tyndall Centre in the UK is applying the idea to Britain, in work done by Richard Starkey .
Technorati tags: global warming, carbon credits, decarbonisation