Where’s Climate Change at ?
Behind closed doors. Swept under the mat.
I think a number of people are coming to terms with the fact that carbon pricing cannot possibly sort the problem of emissions. The only way forward is regulation, legislation, rules, laws.
So, where are the policymakers ? And what are they saying ?
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.
The Financial Times advises :-
https://www.ft.com/cms/s/0/5dca38e0-8ac1-11df-8e17-00144feab49a.html
“Environmentalists have had a disappointing year. The Copenhagen talks fizzled and the economic crisis has overshadowed all other considerations. But the need for countries to repair towering fiscal deficits is an opening for the movement. As treasuries look for ways to raise more revenues, climate change activists should make the case for green taxes.”
So, environmental campaigners should be campaigning for green taxes to plug holes in public deficits caused by crashing banks ?
I think not.
Tax revenue that is collected on the basis of environmental pollution should always be hypothecated, committed to remediation and removal of environmental pollution.
The majority of the populations of the deficit-stricken economies (OK, then, the whole world) are quite right in resisting being locked down into extra taxation at present. Green taxes would be a financial tie too tight for most of the world’s economically stressed.
Green taxes spent on things other than green energy and energy efficiency would be a mockery.
Besides which, only very high levels of green taxation would have any impact on pollution behaviour – the “signal” from green taxes would be lost amongst general economic “instability” (that is, price rises due to other factors).