The carbon market is worth following, if for no other reason than it’s a very good example of voodoo economics - and it's highly entertaining. 

We talked yesterday to Steven Joyce about James Shaw's desire to have our liability on carbon emissions put into the books so we can all see what sort of effect it would have on our finances. 

The key lines in Joyce's explanation were that we can't do that because we don’t actually know what the figure is, remembering of course we promised to reduce emissions in the Paris Accord by a certain amount in a certain timeframe. 

He also quite rightly pointed out that there is no one to pay it to, and the reason there is no one to pay it to is because the whole thing is invented. Which brings us back to the Climate Change Commission, who have put out their latest advice. And their latest advice advises the Government that they have their settings all wrong. 

The previous Government had their settings all wrong as well, given the carbon auctions last year were a complete and utter bust. The carbon auctions happen four times a year but it's another invention - if you're a polluter you buy credits to offset your emissions. 

The trouble was at each and every one of the auctions last year no one bought anything. Not one carbon credit. Nothing. 

As each auction came and went the unsold credits got added to the next auction, so work out the ol' supply and demand equation and guess what happened? That's right - nothing. 

Four auctions and not a single sale. The Government could have got $2billion-ish but they got nothing. 

The commission says we need to do something about it because there are too many credits, there is too much uncertainty and we run the risk of not meeting our obligations. 

Small question - what exactly happens if we don't meet our obligations? The answer, my bet, is nothing. 

Very few, if anyone, is meeting their obligations. China certainly isn't, or America, or India, the world's actual polluters. 

We have got ourselves caught up in a faux fight, with a market we invented, in a non-enforceable deal. All propped up by the idea that you should hand over money to an imaginary group, or organisation, or people if you burn coal. 

Could it be the fact no credits were sold at our auctions last year and the commissions concerns over settings is largely because this is a scam? And when push comes to shove people don't mind espousing hot air about it, we love a bit of greenwashing. 

It's just we are not so keen on handing over actual money.