User:Jmaddiso/Common Asset Trust

A common asset trust fund manages common assets for future generations. Common assets include the spectrum of the air, the waste absorption capacity of the air, water, etc. Generally, common assets are those asset which humanity has inherited and has not created. The idea was first proposed by Peter Barnes as a solution to a host of issues such as climate change, and inequality.

Relevance
Markets have not supplied most common assets because property rights simply do not exist for them. These assets become degraded and diminished with overuse, resulting in what is called the tragedy of the commons. Climate change is one example of the over use of the waste absorption capacity of the air.

How are assets included?
A common asset trust creates "common property rights" for common assets. Propertizing these resources can take many forms:

Waste absortion capacity: The air has a finite capacity to absorb gasses such carbon dioxide, methane, and sulfer dioxide. To preserve the air, a cap-and-trade mechanism can be used to reduce emissions to within the capacity of the air. In this case, permits to pollute the air act as property rights

Peter Barnes advocated the creation of a common assets trust in his book, Capitalism 3.0, to help prevent market failure. Both common goods and public goods are not provided in a market system. Common assets are natural resources or human made resources inherited by all of humanity. Examples include the spectrum, the waste absoprtion capacity of the air, and water. The common asset trust creates a system that ensures common ownership of these assets.

(1) http://capitalism3.com/files/Capitalism_3.0_Peter_Barnes.pdf (2) http://www.leg.state.vt.us/docs/legdoc.cfm?URL=/docs/2008/bills/intro/S-044.htm (3) http://www.cfed.org/focus.m?parentid=2&siteid=47&id=93 (4) http://en.wikipedia.org/wiki/Alaska_Permanent_Fund