Carbon Taxation - Cap and Trade and Its result on the Cold warehouse industry

The government is currently attempting to pass a bill through Congress that sets a limit, or cap, on the number of a pollutant that can be emitted into the environment. Companies are issued emission permits and are required to hold an equivalent number of allowances which describe the right to emit a exact number of carbon. The total number of allowances cannot exceed the cap.

Companies that need to growth their emission reduction must buy toll from those who pollute less. The exchange of allowances is referred to as the trade measure of the bill. In effect, the buyer is paying a fee for polluting, while the wholesaler is being rewarded for having reduced emissions. In theory, Companies who cut emissions will cut pollution at the lowest potential cost to society.

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While some cold storage warehouses control non-temperature controlled facilities, the ones that certify products stay at safe temperatures come with a price. Clearly, this is the safer choice in storage warehousing because it helps prevent damage to items that want a controlled temperature. Many of the products and items stored may want some type to atmosphere control in order to remain in good condition.

Carbon Taxation - Cap and Trade and Its result on the Cold warehouse industry

The cap and trade bill could potentially put a heavier price on climatic characteristic controlled storage and warehousing facilities because they emit a larger number of carbon than those that do not. If this bill passes through Congress, many storage facilities may be forced to growth the prices they offer clients on storage, communication and all offered supply chain functions. This bill could even have a negative consequent on global agriculture as a whole, which makes workers in the cold storage commerce apprehensive.

Cold storage facilities not only store goods, they converyance them. Given the fact that the communication sector is the second largest source of carbon emissions in the country, these businesses are leery of what effects this bill may have on their business. With cold storage and warehousing operations contribution third party logistics functions, highlighting both local and global communication services, these storage operators may begin to fear the time to come of their business with carbon taxation in the form of cap and trade.

Although our economy is in a retreat and we are cutting corners wherever possible, the cap and trade bill may not make it easy on businesses that rely heavily on natural environmental elements, such as carbon. When asked if people are in favor of such a bill being passed, over half of American's agreed, stating that the environment should be given priority even if it causes slower economic growth, business closings and job losses.

Carbon Taxation - Cap and Trade and Its result on the Cold warehouse industry

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