Articles by David Roberts

Obama's budget contains carbon auction revenue, but how much will be rebated to consumers?

A source close to Obama once told me, when I asked how serious the White House is about getting a climate bill this year, to watch the budget. If permit auction revenue is included, that should send a clear signal that this was no empty campaign promise.

Obama's budget outline won't be released until Thursday, but the New York Times has an early preview that includes this:

On energy policy, Mr. Obama's budget will show new revenues by 2012 from his proposal to require companies to buy permits from the government for greenhouse gas emissions above a certain cap. The Congressional Budget Office estimates that the permits would raise up to $300 billion a year by 2020.

This is fairly sketchy. It doesn't say anything about the amount of new revenues projected by 2012, which would be a tip-off about the strength of the targets and the percentage of auctioned permits the administration expects. Perhaps on Thursday we'll get a clearer picture. But at the very least, this is an unmistakable sign that they're serious about a cap-and-trade program with (some) auctioned permits, and soon.

Now, here's a part I'm not as thrilled about:

Since companies would pass their costs on to customers, Mr. Obama would have the government use most of the revenues for relief to families to offset higher utility bills and related expenses. The remaining revenues would cover his proposals for $15 billion a year in spending and tax incentives to develop alternative energy.

There are lots of fans full rebating (sending back 100 percent of tax or auction revenue to taxpayers) in the Grist community. I am not one of them. I am not even particularly a fan of rebating "most" of auction revenue. The fact is, we need enormous public investments in green energy and infrastructure -- far beyond $15 billion a year. Rebates should be the minimal necessary to compensate those hardest hit by higher energy prices, and the rest of the revenue should go to investments in a green economy. After all, the best way to provide long-term relief to American consumers is to accelerate the clean energy transition.

Also, we need new resources …

"The time for implacable opposition, for going it alone, has passed. We need new approaches and greater adaptability if we are to achieve acceptance of fossil fuels as sustainable resources."

-- ConocoPhillips CEO James Mulva [PDF]

Geoengineering what?

China fires chemicals into the clouds to try to stimulate rain to end the drought. Days later, a huge and unexpected snowfall closes the highways into and out of the northern provinces, effectively shutting off economic activity.

Discuss.

Friday music blogging: Slumdog Millionaire

In honor of the Academy Awards, here's a song from the odds-on favorite to win Best Picture: Slumdog Millionaire.

I've had somewhat mixed feelings about the movie itself. I enjoyed it immensely while I was watching it (how could you not?). Later I read a bunch of grumpy backlash -- it's manipulative; it romanticizes poverty; the female character is inert; etc. -- and found myself revising my original assessment. And later still, I said to myself, you know what? Screw you grumpy backlashers. It was a fairy tale, an effort to marry the exuberance of Bollywood with independent American filmmaking; social realism wasn't the point. It was a celebration of life and transcendence amidst suffering, and I'm by-god going to trust my gut and love it.

(Yes, I'm extremely neurotic.)

One thing was never in doubt, though: the music is awesome. It is absolutely an essential character in the movie, as much a polyglot, life-affirming mess as the film itself. It's easily one of the best soundtracks of the last five years, and one of my favorite albums of the year. Incidentally, the producer, A.R. Rahman, is an enormous international celebrity -- but no one in America knows his name. Hopefully this album will change that.

While we're at it, we might as well use this thread for Oscar thoughts and predictions. Who are you rooting for/against? What are your predictions? Did you see any of the movies this year?