Surprise! Well, not really, considering who cap and tax, er, trade programs have worked in countries around the world, with the costs of carbon essentially equating to junk bond status

(Sacramento Bee) State environmental leaders this week hailed California’s first auction of carbon emissions credits a huge success. But budget writers are hardly thrilled. A low price for credits and minimal demand for future offsets suggest California will see a mere fraction of the $1 billion that Gov. Jerry Brown and lawmakers estimated the state would receive this fiscal year.

The nation’s brokeyest broke state was depending on the money from the auctions to fix their fiscal house have more money to waste on foolish projects, reelection promises, free stuff, and supporting illegal immigrants who make up one third of their prison population. They pegged their hopes on something that had yet to occur, and were Facebooked

As California sells credits, it stands to benefit financially. Brown and lawmakers assumed California would take in $1 billion total this year, spending $500 million on state budget relief and $500 million on curbing greenhouse gas emissions. The California Air Resources Board sold $289 million in credits this month, but most of the money is dedicated for utilities and their ratepayers. That leaves $55.8 million for the state.

$289 million is not chump change, of course. But, again, they were pining for $1 billion. That’s what was built in to the budget for spending.

State leaders erred on another market prediction when they assumed Facebook shares would trade at $35 this fall. The stock has traded below $25 since August, and the analyst estimates that California will see $626 million less than expected as a result. The LAO said last week the state faces a lingering $1.9 billion deficit, partly because of less Facebook and cap-and-trade money.

So, they pinned their financial hopes on, well, hope, rather than actual economic conditions. Is it any surprise they have a $1.9 billion deficit?

Even David Roberts, one of Grist’s super climate terrorists Believers, thinks that carbon taxes are silly. One thing to note is that if done properly, the costs for CO2 goes down.

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