Of course, Pat Michaels is “right-wing”, but that’s not what I meant.
Some folk will be surprised that I agree with anything that Patrick Michaels says, as he is consistently inaccurate about the Science of Global Warming.
However, he is right that a Carbon Tax is the wrong way to proceed.
Carbon pricing, whether by direct taxation or by a trading scheme, effectively creates a double disincentive for change.
We have a large number of companies and organisations that are highly dependent on the use of Fossil Fuels. Carbon pricing will make these companies and organisations less financially efficient, and they will try anything they can to pass on the costs of Carbon to their consumers and clients, in order to remain profitable.
Carbon Taxation will therefore stimulate cost offsetting, but not Carbon reductions.
Moreover, if companies that make and sell energy are forced to pay for Carbon, they will have less funds available to deCarbonise their businesses; less capital to invest in new lower Carbon technologies.
Carbon Pricing will not alter the patterns of emissions significantly, if at all.
We have to face facts : the economists are largely wrong about environmental taxation. Record fines and levies demanded of Fossil Fuel companies in the last ten years have not stopped the spills, the leaks, the poisonings of waterways; nor have they helped the companies change course and start to develop Renewable Energies.
The pricing of large scale environmental pollution is a failed disincentive.