Thursday, April 16, 2009

US paying companies to pollute

The US government is actually paying companies to make pollution, writes Christopher Hayes in The Nation:
. . . paper mills are adding diesel fuel to a process that requires none in order to qualify for the tax credit. In other words, we are paying the industry--handsomely--to use more fossil fuel.
You have to wonder about the sanity of any economic system that provides rich incentives for managers to exploit loopholes in our environmental laws.

On the other hand, I also wonder whether the libertarians might be onto something. Do the best intentions of governments only make everything worse in the end? I suspect this observation mainly holds true of countries where industry and government are closely linked.