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It seems to me that the carbon credits set up a system to kick the
can down the street.
Why not a system of solar credits, where the polluter pays a fee
that is used to rebate the residence or business that installs a
solar energy system that either directly supplies energy in raw
form (to heat) or converts it to electricity (to use for cooling,
etc.)
Sample out of the stack or immediate area to determine pollution
level and levy fee accordingly.