Articles by Adam Stein

How cap-and-rebate brings about carbon reductions

David Roberts asks: Who, in this scenario [carbon revenue rebated to consumers], has any new incentive to shift to low-carbon electricity or efficiency? Short answer: everyone. Let’s say I’m your utility, and I raise your energy prices so that, at present rate of consumption, your bill will rise to $50,000 per year. Pretend that energy […]

Whatever its virtues, the gas tax is nearing the end of its life

The post on the mileage tax stirred up a lot of reaction, much of it negative. As it happens, the state of Oregon recently wrapped up a successful trial of a mileage tax system, so for the next few posts I’m going to be relying heavily on an excellent final report on the system (PDF) […]

WSJ: hacks and handout-seekers hate O's climate plan

Environmental Capital reports that Obama's approach to climate change legislation is foundering, because it's tied to an ambitious social agenda. Which is weird, because Obama's cap-and-trade proposal isn't tied to an ambitious social agenda.

Many Democrats are upset that President Obama's budget earmarks most of the $646 billion in cap-and-trade revenue for generic tax cuts and to help fund other programs, rather than for specific help to cushion the blow of increased climate regulation.

This is a bit tricky to parse, but it helps if you understand that the word "earmark" here is used to mean "the opposite of an earmark." Congresscritters want the money from cap-and-trade for projects in their own states (green infrastructure, vote-buying, what-have-you), and Obama wants to return most of it to taxpayers.

So where is this "ambitious health and social welfare agenda" stuff coming from? For that, we are referred to Bush-era EPA official and liar G. Tracy Mehan, III. Mehan has penned a fairly boring article in which he runs down the usual pros and cons of various flavors of carbon taxation, and then concludes:

A love of delicious farm votes beef crosses ideological boundaries

In December, ranchers fell into a panic over a nonexistent EPA proposal to tax methane emissions from cows. By February, panic was replaced by giggling: how could they every have worried over something so crazy as a "cow tax"? And now, to demonstrate how badly misplaced their fears were, a Democratic and Republican Senator have joined together to enshrine in law the sacred principle that American cows shall never be taxed. Smell the bipartisanship.

Including cattle in a cap-and-trade system is, of course, a fine idea. From an environmental perspective, cattle are a major source of a wide range of ills: methane emissions, land use changes, nitrous oxide emissions, ammonia emissions, etc. If you tally up the negative impacts of beef on human health and productivity, the societal cost of cows climbs even higher.

From an economic efficiency perspective, it generally doesn't make sense to exclude sectors from a carbon cap. We want emissions reductions to come from the fastest, lowest-cost sources available, and it's hard to imagine anything cheaper or lower-cost than reduced beef consumption. It takes decades to shut down a coal plant. It takes no time at all to not eat a strip steak. Moreover, energy is a primary input to just about every sector of the economy. The same can hardly be said for tender, delicious short ribs.