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Carbonomics: Key Ideas at a Glance
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Carbonomics presents a systematic analysis rather than the usual laundry list of favored technologies. Here are a few key ideas from that analysis.
1. The Carbon Untax (Backed by Al Gore's climate advisor, James Hansen)
A carbon tax works by making fossil fuel more expensive. But who get's all that money? To make this tax cheap, Hansen and Carbonomics say: given all the money back to consumers on an equal-per-person basis. Carbonomics explains why this works and why it's fair.
2. Carbon caps have hidden problem
A carbon cap is just a carbon tax with the tax-rate set by market speculators to enforce a cap that is set by the government. It can work, but the tax rate will be volatile and when it bounce up, a political backlash is likely. James Hansen says a cap "will practically guarantee disastrous climate change."
3. Cooperation between the Two Energy Camps
One camp backs climate stability, the other, energy security. Neither is cooperating. Until they do, energy policy is doomed, and OPEC and Big Fossil will keep winning. Fortunately, the better energy solutions work for both camps. Carbonomics carefully sorts these out.
4. A Consumers' Cartel: Charge It to OPEC and Cut Carbon Emissions
Kissinger formed an international consumer's cartel to fight OPEC. But just like Kyoto it was designed to raise the price of fossil fuel so we would consume less. The goals are different, but they work on the same principle—reduced consumption. One organization can be both. Think of it as a "climate cartel." This works for both energy camps, and helps national and international cooperation.
5. The Great Cost Confusion
This is the flip side of the untax. Most pundits say "A low price on carbon will do almost nothing, and a high price is way too expensive." What do they mean by expensive? They are thinking like this: A high price would collect $300 billion per year for the government and that's too expensive. Sure it is—if you throw it all away (or give it to special interest lobbyists). The confusion is to think collecting the money is a cost. The cost is wasting it—so just give it back.
6. The Race to Fuel Economy
Fuel economy standard have flopped. (1) they hurt GM, (2) they make GM the "expert" on standards. For 30 years the Big Three blocked every increase in standards. Solution: (1) Don't set any standard, and (2) don't hurt GM. No standard? Races have no standards. You just have to beat the competition. So use race, and make the losers pay for the prizes of the winners. Define the winner as the one who improves most. GM has lots of room to improve. Read the details in Carbonomics.
7. No Carbon Cap for China
If you were so poor you only used the fossil fuel that the average American used in 1880, but you were working hard and getting richer, would would want the US telling you to cap your fossil fuel use below the 1880 level? China has been saying "absolutely no" to this idea for 15 years. They actually mean "No." It's pretty simple. Same for India. So forget carbon caps—without China on board, any climate policy will fail.
8. Global Carbon Pricing
China says they will make a binding commitment—just not to a cap. Our top economists from left, right and center (Stiglitz, Mankiw, and Nordhaus) agree on the answer. Get the world to agree on a carbon price. Countries can do that with a tax, an untax, or even a carbon cap if they want. If China agrees to the same tax on carbon as the U.S., nothing stops them from becomes as rich as the U.S. They can live with that.
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http://zfacts.com/p/1086.html | 01/18/12 07:18 GMT
Modified: Sat, 14 Mar 2009 23:33:01 GMT
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