Out There

Carbon Tax

Posted in politics by Pete on September 11, 2015

I’m not going to actually analyze this giant issue here and now, but an article in the ADN today caught my eye.  It cites a study that found that rural Alaskans would “benefit financially from a proposed national program designed to increase energy efficiency and move away from fossil fuels by charging a fee for carbon and returning dividends to households.”

Specifically:

Dividend payments to Alaska households in the study area would total $5.9 million the first year, which would be $2.2 million more than the cost of the fee. “Given the data we have, people in rural Alaska would fare well,” Colt said.

And the counter argument:

One important caveat found in the study is that while most residents would get more in dividends than they would pay in fees, a minority would not. “That is a concern with every kind of assistance program,” Colt said.

Although I’d heard of market-based approaches to the climate/carbon emissions problem before, I was intrigued enough to check out the org who paid for the study.  Their website has this banner at the top of the front page:

CCL banner

Nice.  And the more I think about it, the more I’m persuaded.  At first blush I like this plan.  I realize that as a middle to upper middle class person using lots of electricity in a village that gets most of its power from inefficient diesel generators, I probably will pay more than I would receive.  But the economist in me believes that an incentive-based approach is the most effective way to get everyone (and utilities) to pay attention and actually change their behavior.  Isn’t it preferable to intense regulation by the EPA that is the most likely alternative??  Doing nothing just kicks the ever-increasing costs and problems down the road to future generations – foolish.  Am I wrong here?  Feel free to comment if you can state your case reasonably with a minimum of a few sentences.

One other thing to note is the comments section at the bottom of that ADN article.  Classic.  In a depressing, mind-numbing way.  Way to think things through and put others first guys.

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