> it is more economically sensible to tax where substitutes are readily 
> available.

If you're taxing to change behavior, yes.  If you're taxing to raise
revenue without distorting markets, no.  If we tax high-carbon
activities to fund mitigation in other areas, we're taxing for
revenue; if we tax high-carbon activities to encourage substitution of
lower-carbon alternatives, we're taxing to change behavior.  I don't
immediately see a reason to prefer one over the other, rather than
just going with cap-and-trade that's indifferent between having people
substitute or subsidize.

> So all of a sudden you are tax experts. Why don't you stick to
> climate control issues about which you know something.

I make no claims to be an expert about either, but I'm probably closer
with taxation.

On May 9, 12:26 pm, Andrew Lockley <[email protected]> wrote:
> With respect Eugene, I have more qualifications in economics than I do in
> climate science.  I've also got ample experience dealing with legislative
> changes through my work in NGOs.
> A
>
> 2009/5/9 Eugene I. Gordon <[email protected]>
>
> >  So all of a sudden you are tax experts. Why don't you stick to climate
> > control issues about which you know something..
>
> >  ------------------------------
> > *From:* [email protected] [mailto:
> > [email protected]] *On Behalf Of *Andrew Lockley
> > *Sent:* Saturday, May 09, 2009 11:40 AM
> > *To:* [email protected]
> > *Cc:* [email protected]; geoengineering
> > *Subject:* [geo] Re: Funding air capture and CCS
>
> > Not that I'm a big fan of flying, but it is more economically sensible to
> > tax where substitutes are readily available.  For example, coal fired power
> > stations can be replaced by wind.
> > I suggest that we move this discussion off list, it's not geoeng.
>
> > I note United Airlines? are trialling biofuel planes, and I note further
> > that biofuels may have a higher net carbon impact than fossil fuels.
>
> > A
>
> > 2009/5/9 Stephen Salter <[email protected]>
>
> >> Hi All
>
> >> It might be possible to fly without releasing carbon.  The attached
> >> paper suggest how this might work.
>
> >> Stephen
>
> >> Emeritus Professor of Engineering Design
> >> School of Engineering and Electronics
> >> University of Edinburgh
> >> Mayfield Road
> >> Edinburgh EH9 3JL
> >> Scotland
> >> tel +44 131 650 5704
> >> fax +44 131 650 5702
> >> Mobile  07795 203 195
> >> [email protected]
> >>http://www.see.ed.ac.uk/~shs
>
> >> Sam Carana wrote:
> >> > A cap-and-trade scheme would make flights more expensive. However, I
> >> > doubt that this would reduce the emissions caused by aviation. It's
> >> > typically the rich that fly airplanes. The poor don't fly long
> >> > distances a lot. Apart from the rich, there are other sectors such as
> >> > government bureacrats, diplomats and the military that don't respond
> >> > well to price incentives. Additionally, aviation is a growth industry.
>
> >> > The best way to tackle the problem is therefore to impose fees on
> >> > fossil fuel and use the proceeds to fund carbon-negative activities,
> >> > such as air capture and improving land usage (biochar, afforestation,
> >> > etc). This will have the double impact of discouraging the use of
> >> > fossil fuel, while at the same time encouraging carbon-negative
> >> > activities, which makes the overall policy doubly effective.
>
> >> > In conclusion, aviation seems a good place to start with fees tied to
> >> > funding of carbon-negative activities. At UN climate talks in Bonn,
> >> > the world's poorest nations proposed a levy of about $6 on every
> >> > flight (excluding air freight). The levy could raise up to $10 billion
> >> > per year and would increase the average price of an international
> >> > long-haul fare by less than 1% for standard class passengers, but up
> >> > to $62 for people traveling first class, according to a report in the
> >> > Guardian.
>
> >>http://www.guardian.co.uk/environment/2009/apr/06/aviation-climate-ch...
>
> >> > In the light of those amounts, it doesn't seem unreasonable to expect
> >> > that fees imposed on conventional jet fuel could raise billions per
> >> > year. Proceeds could then be used to fund rebates on air capture of
> >> > carbon dioxide, which could be pumped into the bags on location to
> >> > enhance algae growth. Air capture devices could be powered by surplus
> >> > energy from offshore wind turbines. With the help of such funding, the
> >> > entire infrastructure could be set up quickly, helping the
> >> > environment, creating job opportunities, making the US less dependent
> >> > on oil imports, while leaving us with more land and water to grow
> >> > food, resulting in lower food prices.
> >> >http://my.nowpublic.com/environment/funding-co2-air-capture
>
> >> > Cheers!
> >> > Sam Carana
>
> >> --
> >> The University of Edinburgh is a charitable body, registered in
> >> Scotland, with registration number SC005336.
>
>
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