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RE: Turning smog into DIAMONDS! How about that?!
It may seem beautiful but IMO it can lead to even greater pollution. Why?
It encourages emittents(such as huge factories) to send more pollutants such as carbon di-/oxide to the atmosphere, just to produce more carbon from which diamonds consist. Hence, higher amounts of sulfur and nitrogen oxides (and lots of other pollutants) would contaminate the environment (for example during "acid rain").
But why emittents should be interested in the higher production of these diamonds? They will be sold by the Smog Towers project and the benefits will be retained to finance other towers, so I don't see anyone else interested in the increased emissions..