I've attached Robin Hahnel's response to my piece on carbon trading. Here
are a few paragraphs in response to his response

1) Hahnel objects to the length, but of course I believe in empirical data,
in proving my points. Also I would not bother writing on this if  I did not
use it to argue comprehensively against carbon trading.

2) Hahnel objects to my  point on net sequestration because I point out
that net sequestration is not always lower than gross.  If we were talk
pure biology  his point would be right. However, in treaties and in most
discussions Emissions are discussed including or not including LUCF (land
use and changes from forestry) . So I'm looking at way LUCF is handled in
treaties and in most discussion.   And LUCF is netr sequestration in some
cases and a source of net emissions in others. I will  note that Hahnel
acknowledges my larger point:  Net emissions from LUCF in most cases (and
yes net Sequestration in all cases)   requires lower reductions for a given
percentage, or a higher percentage for a given ton reduction. He seems to
not worry that this is   an obstacle to negotiations, and STILL does not
propose any type of additional adjustment in how targets are framed to
compensate for the effects of his proposal.

3) Hahnel objects to how extensively i point out the problems with
regulatory capture under his proposal, without noticing that I'm pointing
out that there are powerful forces who have stronger incentives to
influence regulations under his proposal  than they have under other
policies. He also does not a answer my argument that it is not merely
difficult but impossible to measure offsets on a project by project basis
because on a project level the baseline is a story about what might have
been.

4) Hahnel claims that offsets in nations with national caps will be as
likely to honor treaties where they have to give money back as they are to
honor treaties where they only receive money if the reduce emissions.
 Because they are the same thing mathematically, he considers noticing the
difference "loss aversion" a trivial psychological point. However. I point
out a huge body of peer reviewed literature  on loss aversion. I point out
that loss aversion is the rule, not the exception in the finance industry.
I even point out an actual example of loss aversions in offsets in a major
polluter China, where they accepted not having offsets approved but pushed
back hard and made threats when the EU considered revoking existing
offsets. Apparently the fact that loss aversion actually was demonstrated
in practice did not make a dent in Hahnels opinion.  Too beautiful a theory
to be destroyed by an ugly fact? Is it really news to a libertarian
socialist critic of markets that states and corporations are not always
rational actors?.

5) Permanence of biological sequestration.  Please note that my claim is
not that not burning fossil fuels is 100% certain, but that  much (not even
all) of the uncertainty is under human control in a way that it is not in
biological sequestration and also that biological sequestration is less
certain. . Hahnel sort of back door acknowledges that. but says it doesn't
matter cause you can  just penalize nations when sequestration is reversed.
Two problems with this. 1)Incentives are supposed to be for stuff under
human control. Rewarding and punishing for what is not under human control
is not a great way to change human behavior. 2)  I also pointed out that to
the extent that sequestration is under human influence (and there is a lot
we can do to affect long term trends)  year to year fluctuations don't
measure this well. We need to measure long term not short term
sequestration. And we need to measure forest preservation which helps
determine long term sequestration even when it does not have much short
term affect.  I give the example of US forestry. The US has the largest
sequestration from LUCF of any  nation in the world (though this does come
close to emissions). But the department of Ag (which is far from anti tree
cutting) says in long term we will turn US LUCF into a net source if we
keep doing what we are doing.. Should the US be rewarded for this by having
LUCF sequestration subtracted from emissions for the next ten years ? Will
having to pay penalties after all the old and 2nd grown is replaced by
young trees make up for the fact that the old trees are gone? That is why
sequestration should be  measured and incentivized separately from
emissions cuts, and ecosystem preservation (forests, wetlands, grassland
etc.) should be measured and incentivized separately from even long term
sequestration.

Messy details. You have to pay attention to the messy details.
-- 
Facebook: Gar Lipow  Twitter: GarLipow
Solving the Climate Crisis web page: SolvingTheClimateCrisis.com
Grist Blog: http://grist.org/author/gar-lipow/
Online technical reference: http://www.nohairshirts.com

Attachment: LippowRes.Internet.docx
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