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climate change environment
May 2008 
Carbon Tax Part II
Posted on Oct 27th, 2007
by 
Joy Cassell
Joy Cassell
Ok as promised here is part two of the Christian Science Monitor's articles on Carbon Tax and Global Warming.
Conservative and liberal economists like it. James Connaughton, President Bush's top environmental adviser, backs it. Al Gore says he's always preached it. So why isn't a carbon tax on the table in Congress as it weighs measures to curb climate change? A three-letter reason: T-A-X.
Economists agree that the real cost of burning fossil fuels - damage to the environment and health, not to mention the cost of replacing them as they run out - isn't reflected in today's prices. A carbon tax would directly send a market signal to reduce carbon use. And it would provide an incentive for investment in renewable sources.
I disagree with the following:
But wait: What if the carbon-tax revenues were returned to most taxpayers, canceling out the effect on pocketbooks but retaining the market incentives?
Conservative and liberal economists like it. James Connaughton, President Bush's top environmental adviser, backs it. Al Gore says he's always preached it. So why isn't a carbon tax on the table in Congress as it weighs measures to curb climate change? A three-letter reason: T-A-X.
Economists agree that the real cost of burning fossil fuels - damage to the environment and health, not to mention the cost of replacing them as they run out - isn't reflected in today's prices. A carbon tax would directly send a market signal to reduce carbon use. And it would provide an incentive for investment in renewable sources.
I disagree with the following:
But wait: What if the carbon-tax revenues were returned to most taxpayers, canceling out the effect on pocketbooks but retaining the market incentives?
Under one plan, every worker would receive a tax rebate of about $560, cutting the tax bill by 18 percent for those earning $20,000, or by 4 percent for those earning $90,000. The burden on consumers would shrink, but the US would achieve greater conservation and a shift to energy alternatives. And the tax could be fine-tuned to meet rising targets for reducing carbon dioxide.
Wonderful in theory but no government, especially ours has the ability to use a tax in a progressive manner. Before long special interests and campaign money will corrupt this, besides consumers act in their own intrest, if they do not feel the pain there will be no changes in carbon consumption.
Access: PublicTagged with: Economics, Climate Change/Environment
