Our Next President and the Environment
America absolutely needs to be the world leader with regard to environmental protection. One thing that encourages me about the three remaining candidates is that they all are sympathetic to the environmental implications of economic policies. All three candidates have expressed at one time or another a desire to implement a cap and trade system in America. This would be similar to the one created by the Kyoto Protocol, the big difference being that American dollars do not go to other countries. Instead, more-polluting companies have to give money to less-polluting companies. At least according to the rhetoric of those who oppose Kyoto, the big hang-up has more to do with the fact that significant amounts of money would be going to China. However, there are some who say a carbon tax would more adequately do the job. Among the arguments that carbon taxers make are:
- More predictable energy prices
- Quicker and easier implementation
- More transparency
- Less room for manipulation by special interests
- More pervasiveness throughout all industries
- Greater ability to implement a progressive tax
I basically pulled these verbatim off of carbontax.org. I would add one more consideration that they did not. Cap and trade will (and really already is) create/creating a third party broker system. Essentially middle men are forming that purchase pollution credits and sell them. This is really just a waste of money on a economy and seems to be a breeding ground for all kinds of elicit business practices. None of these are conclusions I have firmly landed on but I thought I’d throw them out there in order to debate the merits of some of these concerns.
A cap and trade system will accomplish all of the environmental objectives better and in a more effecient way. There is no reason why a carbon tax would necessarily have a positive effect on the environment at all; it is far more likely that producers will just pass the additional cost on to consumers while maintaining/increasing their carbon emissions.
But the real reason why I like cap and trade is because it makes a lot more sense on a global scale and it can help developing nations. Carbon emissions, climate change, and pollution are all global problems, and they need global solutions. As you alluded to though, a major problem will be getting China to come along with a global scheme.
A carbon tax is simply not a viable solution on an international scale, and so we shouldn’t prefer it even if it did achieve the environmental objectives.
David M. Manes
21 Mar 08 at 11:46 am
But your not addressing one issue. Businesses will save money in the long run by emitting less. You pay less or no money to the government by reducing your emissions, depending on how much you reduce. That is one reason why a carbon tax could have a positive affect on the environment. I don’t know how you could say there is no reason to believe that.
Chris McNeal
21 Mar 08 at 12:01 pm
The cap and trade system is being pushed by big wall street firms.
They will game the regulatory system by lobbying congress
Carbon credits will result in many susidies and tax cedits.
This is classic big business using the strong arm of government to protect their business by limiting competition.
Jesse
21 Mar 08 at 2:00 pm
just food for thought.
http://www.amazon.com/Chilling-Stars-Theory-Climate-Change/dp/1840468157/lewrockwell
Jesse
21 Mar 08 at 2:06 pm