President Obama is moving forward with his plan to introduce a cap-and-trade emissions program in the United States, budgeting $79 billion in revenue by 2012 from the sale of greenhouse-gas permits. The proceeds would be used to invest in clean energy, probably because it s worked so well for companies like Trina Solar (TSL) and Pacific Ethanol (PEIX). Hardly.

It s Not Easy Being Green

Trina Solar (TSL) 1 year

Pacific Ethanol (PEIX) 1 year

As we

last year, cap-and-trade (also known as pollution credits) is simply a tax gussied up to look like a free market solution. The $79 billion cost is ultimately passed onto consumers, both in terms of higher prices and lost productivity.

PowerShares WilderHill Clean Energy ETF (PBW)

pointed out

It could, however, end up a windfall for Climate Exchange PLC (CXCHF), the world s leading operator of climate and emission-related exchanges. It owns and operates both the European Climate Exchange (Chicago Climate Exchange ) (ECX) and the Chicago Climate Exchange ()(CCX), where the vast majority of carbon credits trade. Obama s plan would essentially force the industry to buy credits to offset the carbon they emit. Climate Exchange PLC is the undisputed leader in this space, with the most recent data showing volume in Europe up some 65% over 2008 levels. Open interest in the Chicago exchange has risen 23% over the past year, and cap and trade isn t even law yet.

Shares -- which are traded on London s AIM market, are also listed on the pink sheets under ticker CXCHF.PK -- are down from a 2008 high of $40 to under $10.

It s Getting Hot in Here

Climate Exchange PLC - 2 year
Source: BigCharts.com

Cut-Rate Flights Earn No Love

Last year as jet fuel prices were climbing, airlines raised fares and added various fees in an effort to maintain profitability. Elected officials, pundits and travelers roundly complained about being nickel and dimed to death, with many labeling the approach as price gouging.

With the dramatic drop in oil prices and slowing economy, many airlines have responded by slashing fares dramatically, reports The Wall Street Journal. Systemwide, airfares are down some 40% since last June. American Airlines (AMR), for example, is offering trips to Europe for as low as $200 each way.

Of course, you don t hear a peep from the consumer watchdogs, public advocates and politicians who previously criticized airline surcharges. The entitlement mentality these whiners embody can only muster a response when prices rise to a level they find unacceptable. When prices fall, they act as if they deserved it all along.

AirTran (AAI) is offering flights from Chicago to Miami for $59 less than it costs me to take a government-regulated cab to the airport. Through fierce and open competition, the airlines are providing a stimulus to American consumers no bailout bill can touch.

Penny Pinching Makes a Comeback

It s no surprise that the national savings rate, negative as recently as 2005, has hit a 14-year-high of 5%. With markets in turmoil and Washington s grip on the economy strengthening, many investors are throwing up their hands and heading for the comparative safety of a savings account. Uncertainty over taxes, regulation and government interference has made traditional analysis virtually moot. It s impossible to plan for the long term while Washington is flying by the seat of its pants.

Still, as a percentage of disposable income, Americans' savings habits are nowhere near the 8% to 10% they averaged for most of the second half of the 20th century, suggesting this is one stat likely to continue to rise.

Chart source: iChart.net