> The carbon tax should be levied at the point of production, the mine pit
> or wellhead, and apply equally to imported fuels at the point of import.
>  There existing no global authority with taxing (or any other) powers, it
> has to be levied on a national basis.  The USA is the best starting point,
> because it is the biggest polluter, its domestic policies have the most
> global impact, and it has the greatest resources for quick installation of
> a carbon-free energy system. The tax must fully apply also to indirect
> carbon imports, by taxing all imports ad valorum at the rate implied by the
> country of origin's ratio of CO2 emissions to GDP.  And it should be fully
> rebated to the people on an equal per capita basis, so that the working
> class as a whole (especially its poorest component) will be over
> compensated for the higher cost of energy.4
>
>
I agree with the above, but do not agree that a carbon tax is the most
important. For one thing emissions are not that easy to measure at the
"wellhead" or when imported. Every barrel of oil does not have the same
carbon content as every other barrel. Every lump of coal is not the same as
every other lump. Every MCF of natural gas is not the same as every other
MCF. More importantly leakage during extraction and transport vary. Even
with coal and oil this can be important. With natural gas, this type of
leakage can exceed the actual  burning in impact. For all fossil fuels, how
the fossi fuel is burned has an extreme effect on impact - especially when
it comes to coal and oil where black carbon effects can exceed that of
direct carbon content. Difficulty in measure is  even worse when it comes
non-fossil fuel industrial sources and and biological sources such as
forest degradation and destruction, and agriculture.

Even leaving difficulties in measurement aside, the key to the
transformation that helps phase out fossil fuels is infrastructure -
transmission improvements to move renewable electricity from where it can
be generated economically to where it can be consume, distribution
improvements (including so-called smart grid techniques) that  let demand
adapt to supply to some extent rather always requiring electricity supply
to match demand. This can be done in a way that is completely transparent
to electricity users. But you are not going to get widespread adpation on
the part of consumers through complicated bidding processes or other market
means. It will have to something simply: you get a smart meter and smart
appliances free (or  your existing appliances get turned into smart
appliances through minor modifications). In return you get a small drop in
you electricity bill. That will get widespread acceptance.  But utilities
want to use the smart grid as a new source of super-profits. They won't
accept this kind of arrangement without public subsidies or really strong
regulations  or both. In short a smart grid requires planning.   Also note
that this is not something that can be done to an unlimited extent. Up to a
point there are smart ways to match demand to supply that really don't
incovenience users. Past that electrical service stops being available when
wanted - which degrades the value of electricity.

That means that low emissions sources also require planning to match supply
to demand as much as possible. If wind and solar are used they need to be
placed in the right locations where they generate electricity in as close a
match to demand as possible. To some extent, more solar and wind
electricity will have to be generated than needed so that by generating an
excess sometimes they are more likely to have enough when demand is  high.
 (Note to nuclear supports: the same is true of nuclear. If nuclear is
going to provide increased percent of supply than it will need more
capacity than required during periods of base demand to provide some of the
capacity needed when demand is above baseload)

To take another example: we need  to massively insulate existing buildings.
We need to make sure new building are insulated at close to "passivhaus"
standards that require between 20% and 30% of what existing U.S. buildings
do. Both these things pay for themselves at existing U.S. energy prices or
even at much lower energy prices than those of today. So it is clear that
an emissions price cannot be the primary means to get this done. You need
really strong building efficiency rules for new buildings, and program
where the capital risk is public rather than private. That is you sign up
for an efficiency upgrade, and the cost gets added to your bill - but not
as  a loan, just as another utility charge, and as a utility charge does
not go against your credit the way a loan does, a utility charge less than
what it saves you That of course requires that public issue bonds and
borrow money to finance this, cause private companies won't take this risk
on a large scale. So even if the revenue stream  exceeds the cost of the
bonds, taxpayers are still assuming the risk that it won't. And in order
for the deal to be attractive enough to get widespread consumer takeup, the
added charge to electricity bills may have to be lower than required to pay
back all of the cost, which turns it into a direct subsidy.

Another example transport: while I'm more optimistic about electric cars
than many - I don't believe that in the long run a low carbon economy will
be able to afford the level of automobile use we have today in the US
either in the US or anywhere else.  That means we will need a lot trains,
and while trains can be private in the sense of the public takes the losses
and the private owners take the profits, trains don't exist let alone
expand without public subsidies and are a public good that is best provided
publicly. The need for trains is even more apparent when it comes to
freight. I don't think anyone thinks you can make an electric truck carry a
full containers, let alone carrying a container and towing anther than can
go 500 to 2000 miles, drvien 12 to 16 hours a day. With a car, the weight
of the car exceeds the weight of the passengers to a lot can be done by
lightening the car. With a truck, the weight of the cargo exceeds the
weight of the truck by many times (at least for  heavy cargo) so a lot the
tricks that make up for large battery size in electric cars would not bye
available with heavy freight trucks.

Just examples, but the point is that the key to transformation is public
infrastructure just as it always is with capitalist transformation of
technology.  A price on emissions is important but supplemental. Public
investment and public regulation (other than an emisisons prices) are key
 - that is to say planning. Spending tax money and passing regulations is
the way capitalism does plannning.     But while I know we have market
socialists on this list, I don't think market socialists would deny the
need for public planning when it comes to core infrastructure. And of
course I hope non-market socialists would take the need for planning for
granted.


>

-- 
Facebook: Gar Lipow  Twitter: GarLipow
Solving the Climate Crisis web page: SolvingTheClimateCrisis.com
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