Climate & Energy

Passing on taxes

Empirical data and theory both show that emissions taxes get passed to consumers

Sean asks, "If you put a price on GHG emissions, will it raise the cost of energy?" and answers, "Mostly, no." I wish he were right, because I really dislike carbon taxes and was only gradually convinced to support them by overwhelming evidence. But pretty much every empirical study that has ever been done about sales tax and other broad-based taxes on gross revenue shows that such costs do get passed along.

Green strings

Let’s make all jobs greener with ‘climate quality standards’

Good Jobs First held its first national conference May 7 and 8, 2008, near Baltimore. ----- "Green my job." As I track the emerging "green jobs" debate about renewable energy, energy independence, and green pathways out of poverty, I am struck by how disconnected it seems from progressive tax policy. There are some large "policy forks in the road" being taken, although environmentalists seem unaware they are making choices. As an antidote, I offer two observations and a trial balloon. Observation #1: Some new energy proposals are corporate copycat Some green-jobs policy proposals call for new economic development subsidies to promote the construction of manufacturing facilities for making renewable energy products. However, the average state already has more than 30 different economic development subsidy programs, and companies routinely get 8 or 10 subsidies in a single deal. Manufacturing has long been the most coveted kind of jobs investment. Build a windmill gearbox factory in a major industrial state in America today and it will be showered

Details matter: The New York Knicks as GHG policy

Lieberman Warner criticism, Part 4

This is the fourth in a five-part series exploring the details of the Lieberman-Warner Climate Security Act. See also part 1, part 2, and part 3. I grew up in New York and was a die-hard Knicks fan. I can still remember the lump in my throat when I was at a Mets game in 1985 and the Diamond Vision announced that the Knicks had won the draft lottery, ensuring that they'd get Patrick Ewing and build a franchise around him. And yeah, they never won a title with him (damn that Michael Jordan!), but you always got the sense that they could. Suffice to say, things have changed. They have a massive budget, a high profile, the biggest media market ... and yet they built a team around guys with neither the talent nor will to make the playoffs, much less win. Lieberman-Warner is essentially taking a New York Knicks approach to GHG policy. It's got a huge budget. It's got a huge profile. It appears to be too big to fail. And yet its success is, to a large degree, dependent upon the actions of individuals who have neither the ability nor motivation to lower GHG emissions. Right game, wrong team. This is perhaps the deepest flaw with the Lieberman-Warner approach as currently structured, but also the most subtle. Here's why:

Jump the chasm

Are you an EcoDaredevil?

On Earth Day, Wallace J. Nichols gave a keynote address at Duke University in honor of Evel Knievel entitled "Jump the Chasm: Are you an EcoDaredevil?" After the address, Elliott Hazen, a Duke University PhD student, was honored with the first EcoDaredevil award. ----- Evel Knievel. Growing up in the 1970s, I idolized Evel Knievel. To me, he was a rock star, sports hero, and folk legend in one. He was both a daredevil and a cool character. Back then, his jumps over buses, fountains, and canyons inspired me to launch my bicycle into the air and over puddles, mounds of dirt, and many a hapless friend. Occasionally, in honor of his ill-fated jump over the Snake River Canyon, I'd jump my bicycle into the neighbor's pond. Now, I find new inspiration in my childhood hero.

Sun is in the sky, oh why, oh why, would she wanna be anywhere else?

Lily Allen backs U.K. solar incentive campaign

Brit popster Lily Allen has sung about “riding through the city on [her] bike all day” at the Premises solar-powered recording studio. Now, she’s added her backing to a campaign to reward homes that generate …

Is 450 ppm (or less) politically possible? Part 3: The breakthrough technology illusion

Existing technology is faster and far more practical than hypothetical new inventions

This post will explain why some sort of massive government Apollo program or Manhattan project to develop new breakthrough technologies is not a priority component of the effort to stabilize at 450 ppm. Put more quantitatively, the question is, what are the chances that multiple (4 to 8+) carbon-free technologies that do not exist today can each deliver the equivalent of 350 gigawatts baseload power (about 2.8 billion megawatt-hours a year) and/or 160 billion gallons of gasoline cost-effectively by 2050? (Note: that is about half of a stabilization wedge.) For the record, the U.S. consumed about 3.7 billion mwh in 2005 and about 140 billion gallons of motor gasoline. Put that way, the answer to the question is painfully obvious: "two chances -- slim and none." Indeed, I have repeatedly challenged readers and listeners over the years to name even a single technology breakthrough with such an impact in the past three decades, after the huge surge in energy funding that followed the energy shocks of the 1970s. Nobody has ever named one that has even come close. Yet somehow the government is not just going to invent one TILT (Terrific Imaginary Low-carbon Technology) in the next few years, we are going to invent several TILTs. Seriously. Hot fusion? No. Cold fusion? As if. Space solar power? Come on, how could that ever compete with CSP? Hydrogen? It ain't even an energy source, and after billions of dollars of public and private research in the past 15 years -- including several years running of being the single biggest focus of the DOE office on climate solutions I once ran -- it still has actually no chance whatsoever of delivering a major cost-effective climate solution by mid century (see "This just in: Hydrogen fuel cell cars are still dead"). I don't know why the breakthrough crowd can't see the obvious, so I will elaborate here. I will also discuss a major study that explains why deployment programs are so much more important than R&D at this point. Let's keep this simple:

Plan of surrender

Unlike McCain and Clinton, Obama would have us capitulate to Gas Price Terror

Gas prices are high, which is the worst thing that’s ever happened in the history of America, dating back to the time of the dinosaurs. It’s a violation of the spirit of the Constitution of …

Another way of 'picking winners'

Output-based carbon regulations ignore critical types of efficiency

"Output-based standards" are getting credit around here as a politically impractical but sensible proposal. David described them as "relentlessly efficient." I'm sure relentless efficiency was the intent, but in fact it is very much a way of picking winners, of rewarding one particular type of efficiency at expense of others. The idea is that within industries, a standard will be set for maximum emissions per useful BTU delivered. So if you are heating tomatoes as part of making tomato paste, the standard would apply to your emissions per BTU used to raise the temperature of a tomato. The problem is that while this rewards delivering those BTUs more efficiently, it does not reward heating the tomatoes less, perhaps by substituting a filtering process for some of the heating. When I brought this up in comments, Sean argued that the second method still rewards by lowering fuel bills. But then, so does the first. If delivering BTUs more efficiently needs an incentive over and above fuel saving, then so does finding a way to use fewer BTUs in the first place.

A penny saved ...

Note to Bush, media: Opening ANWR cuts gas prices one cent in 2025

Bush blames Congress' failure to open the Arctic National Wildlife Refuge for high gasoline prices. The administration's own Energy Information Administration found otherwise in a 2004 Congressional-requested "Analysis of Oil and Gas Production in ANWR" (PDF): It is expected that the price impact of ANWR coastal plain production might reduce world oil prices by as much as 30 to 50 cents per barrel [in 2025]. Don't spend it all in one place, American public! (Note to Bush: There are 42 gallons in a barrel.) EIA continues: Assuming that world oil markets continue to work as they do today, the Organization of Petroleum Exporting Countries could countermand any potential price impact of ANWR coastal plain production by reducing its exports by an equal amount. Curses, foiled again!

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