Auctions Quote by Peter R. Orszag
![“If you didn't auction the [CO2] permits, it would represent the largest corporate welfare program that has ever been enacted in the history of the United States. All of the evidence is that what would occur is that corporate profits would increase by approximately the value of the permits.” quote by Peter R. Orszag](https://sms4smile.com/quotes/img-quotes/45c/peter-r-orszag-82656_auctions_if-you-didn-t-auction-the-co2-permits-it_476302.jpg)
“If you didn't auction the [CO2] permits, it would represent the largest corporate welfare program that has ever been enacted in the history of the United States. All of the evidence is that what would occur is that corporate profits would increase by approximately the value of the permits.”
About This Quote
Source Speech: Testimony before US Senate Committee on Finance, 2009
Treating carbon permits as free allocations creates massive corporate subsidies, inflating profits without environmental benefit.
In simple terms: Free permits act as corporate handouts.
Key Takeaway
Avoid free allocation; auction permits.
Themes
environment
economics
policy
subsidies
Mood
critical
analytical
Type
policy
economic
When to use this quote
- Legislative debates
- corporate budgeting
- environmental regulation
Key Concepts
Carbon pricing
market distortion
public finance
Questions to Reflect On
- How would auctioning permits affect corporate behavior?
- What alternatives exist to reduce emissions without subsidies?
A Different Perspective
Auctioning permits may face political resistance and implementation costs.
![“[Congress] and their cronies secure more than one hundred billion dollars in corporate welfare” quote by Lawrence Lessig](https://sms4smile.com/quotes/img-quotes/9cd/lawrence-lessig-3201_billions_congress-and-their-cronies-secure-more-t_834468.jpg)
