James Annan wrote:
> William M Connolley wrote:
> >
> > On Wed, 13 Jun 2007, James Annan wrote:
> >> Time for a bit of transatlantic perspective: petrol prices in the UK are
> >> currently over $9/gallon. OK, that's a bigger gallon. But still...it's
> >> close.
> >>
> >> People might like to work out the effective "carbon tax" on petrol in
> >> the UK too...
> >
> > I've seen it done, its well above whats required for climate purporses I
> > recall... it was on Tim Worstalls blog I think.
>
> Well I meant it semi-rhetorically, but the current tax is about 60p
> ($1.20) per litre, which contains about 600g of carbon, which by my
> calculation makes UKP1000 ($2000) per tonne. Multiply by 3 1/3 to get it
> in terms of CO2. Worth thinking about when you hear the claims that $20
> or even $100/t will shut down the world economy/greatly reduce usage
> (delete as applicable).
>
> Of course other fossil fuel usage may turn out to be substantially more
> price elastic than transport has proved to be.

Of course, in the U.S., our politicians are moving in exactly the
opposite direction.

   Senate Democrats Propose Loans for Coal-Based Fuel Plants
   By EDMUND L. ANDREWS

   WASHINGTON, June 12 -- As the Senate began debate Tuesday on a
   sprawling bill to reduce oil consumption, top Democrats were
   circulating a proposal to provide $10 billion in loans for plants
   that make diesel fuel from coal....

   ... Mr. Bingaman's draft proposal would offer up to $10 billion
in
   direct government loans for coal-to-liquid plants....

More at:
     http://www.nytimes.com/2007/06/13/washington/13energy.html

One is tempted to ask, how  large would the carbon tax need to be to
offset all the government subsidies which promote the use of fossil
fuels?
And, where are the loans for the folks that want to build/install
renewable
energy systems?  I think that a good case can be made that it is
already
cheap to install solar thermal heating for HVAC and hot water in many
locations, if the accounting is done on a 40 year lifecycle using the
same
cost of money that the BIG BOYS get when they go to the bank.

E. S.


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