Comments on: Climate Vote 2007: Why Now, Why Cap and Trade? http://blogs.edf.org/climate411/2007/10/04/cap-and-trade-now/ Blogging the science and policy of global warming Sat, 20 Mar 2010 06:04:56 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Sam Parry http://blogs.edf.org/climate411/2007/10/04/cap-and-trade-now/comment-page-1/#comment-547 Sam Parry Wed, 10 Oct 2007 22:23:38 +0000 http://blogs.edf.org/climate411/2007/10/04/cap-and-trade-now/#comment-547 While a carbon/gas tax is certainly a serious idea, we think it falls short for three main reasons: <ul> <li>First, no one knows what level of tax will create the needed emissions cuts - only a mandatory cap can guarantee results.</li> <li>Second, everyone seems to agree it can't pass Congress, so it delays real action.</li> <li>Finally, it leaves out some folks who could make an important contribution to cutting greenhouse gases, like farmers.</li> </ul> For a <a href="http://blogs.edf.org/climate411/2007/09/17/mankiw_response/" rel="nofollow">more detailed exploration</a> of the merits of cap and trade versus a tax, see an earlier post from our economist Nat Keohane. While a carbon/gas tax is certainly a serious idea, we think it falls short for three main reasons:

  • First, no one knows what level of tax will create the needed emissions cuts – only a mandatory cap can guarantee results.
  • Second, everyone seems to agree it can't pass Congress, so it delays real action.
  • Finally, it leaves out some folks who could make an important contribution to cutting greenhouse gases, like farmers.

For a more detailed exploration of the merits of cap and trade versus a tax, see an earlier post from our economist Nat Keohane.

]]> By: MikeSar http://blogs.edf.org/climate411/2007/10/04/cap-and-trade-now/comment-page-1/#comment-546 MikeSar Tue, 09 Oct 2007 01:26:28 +0000 http://blogs.edf.org/climate411/2007/10/04/cap-and-trade-now/#comment-546 However... Consider these aspects: 1. A Gas Tax Increase could be explained readily and would accomplish as much, considerably faster than working out all the details to "Cap and Trade". 2. It will be awfully expensive to insure compliance. Even the IRS, as big as it is, does not know how much cheating goes on. It would take an army of new inspectors that will cost tens of Millions of dollars just for salaries and benefits -for life. All this cost must be paid and will increase the cost of most goods. 3. A Gas Tax would produce funds as soon as implemented, it requires no new staff, only a minor change at the gas pump, certified by the current Gas Tax Inspector. 4. Revenues could be used by each state to promote their own Green energy projects, from electric/Hydrogen transportation to windmill farms and solar panel production, etc. Also, for re-training coal miners and others displaced by Green Energy. If there is one thing that many learnt from Mr. Rove is that you must have many allies to form the coalitions needed to achieve a major change, like "No Child Left Behind" legislation, unless you have the muscle to force others to obey, follow and resent. The best part of a "Gas Tax" is that it lets people, and industry, decide the details that are best for them as we go through a huge adjustment and our nation is so diverse that "one size fits all" is, clarely, an unrealistic, time-consuming, ineffective, painful and costly alternative. Yes, it may take a veto-override, but not next year. Perhaps the best to hope is to begin the Congressional actions and hearings. Remember, the Administration still talks of "Climate Change", like we ALWAYS had. They are not ready to accept the problem exists, much less solve it, unless there is a private "agenda". How many "deals" could be made to expedite details and passage of "cap and trade" legislation? How high is the sky? However… Consider these aspects:
1. A Gas Tax Increase could be explained readily and would accomplish as much, considerably faster than working out all the details to "Cap and Trade".
2. It will be awfully expensive to insure compliance. Even the IRS, as big as it is, does not know how much cheating goes on. It would take an army of new inspectors that will cost tens of Millions of dollars just for salaries and benefits -for life. All this cost must be paid and will increase the cost of most goods.
3. A Gas Tax would produce funds as soon as implemented, it requires no new staff, only a minor change at the gas pump, certified by the current Gas Tax Inspector.
4. Revenues could be used by each state to promote their own Green energy projects, from electric/Hydrogen transportation to windmill farms and solar panel production, etc. Also, for re-training coal miners and others displaced by Green Energy.

If there is one thing that many learnt from Mr. Rove is that you must have many allies to form the coalitions needed to achieve a major change, like "No Child Left Behind" legislation, unless you have the muscle to force others to obey, follow and resent.

The best part of a "Gas Tax" is that it lets people, and industry, decide the details that are best for them as we go through a huge adjustment and our nation is so diverse that "one size fits all" is, clarely, an unrealistic, time-consuming, ineffective, painful and costly alternative.

Yes, it may take a veto-override, but not next year. Perhaps the best to hope is to begin the Congressional actions and hearings.

Remember, the Administration still talks of "Climate Change", like we ALWAYS had. They are not ready to accept the problem exists, much less solve it, unless there is a private "agenda". How many "deals" could be made to expedite details and passage of "cap and trade" legislation? How high is the sky?

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