Ive seen them on the news recently but Im confused as to what they actually do. Is it like a tax?
In: Economics
The concept of carbon credits is the same economies of scale thing.
Think of it this way: You run a sandwich shop. You bake your own bread and slice your own deli meats. But you don’t butcher your own cows — you just buy something processed at much larger scale that makes it more affordable.
Something done is similar with Carbon Neutrality. The concept of Carbon Neutrality is that you’re doing as much to reduce CO2 emissions as you’re producing. But rather than actually take actions to reduce CO2 at your own scale, another company does *a lot* to reduce CO2 emissions, and they sell that CO2 reduction as a product.
Of course, there’s a whole bunch of bullshit around it. For example, companies somehow “prevent” areas from being deforested, but those areas weren’t being planned for deforestation, or some logging company just chopped down a different forest instead.
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