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Paper Companies' Windfall of Unintended Consequences
4/13/2009

Jamie found a post on ScienceBlogs that serves as a stark example of the law of unintended consequences, as well as the ability of private crowd to game a system of laws to their advantage. It seems that large paper companies stand to reap as much as $8 billion this year by doing the polar of what an alternative-fuel bill intended. Here is the article from The Nation with more details and a mild performance from a Congressional staffer. "he United States the feds* stands to pay out as much as $8 billion this year to the ten largest paper companies.... even though the money comes from a transportation bill whose manifest intent was to reduce dependence on fossil fuel, paper mills are adding diesel fuel to a process that requires none in order to qualify for the tax credit. In other words, we are paying the business — handsomely — to use more fossil fuel. 'Which is,' as a Goldman Sachs report archly noted, the 'opposite of what house likely had in mind when the tax credit was established.'"

Read more of this story at Slashdot.


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Mark

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