Bold move by President Obama this week, getting all kind of stabby on greenhouse gas emissions and “carbon”. I will bow to BikeSnobNYC and tell you that “crabon emissions” are what I have on enchilada night…
In a major way, I am not imprressed. Not because the ideas aren’t good, or because they are rehashed, or because they have zero chance of being implemented… but it is that the reason they have zero chance of happening is because the United States is still a wholly owned subsidiary of the petrochemical industry. And don’t you forget it. Setting prices of gasoline, uh, that is their turf. If you want to play that game they will double down on your pathetic carbon tax with $150/bbl crude faster than you can say “gouge me”. The public won’t care who did it, they will pillory the guy who they believe caused gas to top $5/gal. If they wanted that shit they would move to Europe and pay $6/gal, and get healthcare for the troubles.
I’ve probably related this before but here goes: on my first full day in a job dealing with climate and energy policy I joked “fix gasoline at $5 and we can declare victory tomorrow”. And then it happened. Gas hit $5 in almost all major markets in 2007 and the top blew off. SUV sales cratered, economy cars were flying out of showrooms, people were carpooling, public transit saw a ridership spike (even the bad systems)… and you can go check the math with the EIA, gasoline sales and deliveries took a major hit. BUT, that was due to wehat I believe to be massive futures manipulation in energy markets, facilitated by a lenient SEC under the Bush II administration. If there had been a carbon tax driving that pricing you would have the social changes, the consumer changes, and the tax revenue to start building real next-gen infrastructure. Throw in the income tax swap and you would have more money in consumer’s pockets and a nice economic boost in all the other sectors. But instead all we got were record-breaking profits over at Big Oil.
The problem is that every climate scientist, economist, back bencher, tree hugger, knows or should know that carbon tax policy is sound policy. You can swap it against income tax, and it is a win-win. Even nutjob supply-siders on the right nod in agreement. The trick is to make sure you are spending the revenue on leveling the playing field for competing technologies. And doncha know that Daddy Petrobucks hates that shit all day long. It isn’t enough for him to get Billions of USD in free money at the taxpayer expense, and have a captive market, and legalized pice fixing… no, he certainly will not allow sales of his product to fund his competition.
So enjoy the show, but feel free to leave early because… SPOILER AlERT! The Bad Guy Wins in the End.