Posts tagged with: cap and trade

In this week’s Acton Commentary, I discuss whether the Environmental Protection Agency’s planned regulation of carbon emissions can be justified from a Christian perspective.  The EPA has found that carbon emissions endanger “public health and welfare,” and it is on track to begin regulating vehicle and power plant emissions.

Environmentalists claim that policies targeting carbon emissions, such as EPA regulation or a cap-and-trade program, will stimulate the economy by creating green jobs.  Unfortunately, this is not the case – the government does not have the ability to create jobs.

Rather than stimulating the American economy, full regulation of carbon emissions will damage it severely.  Essentially, a cap or a regulatory burden on carbon emissions would create energy scarcity, making it just as expensive to purchase energy from fossil fuels as it is to purchase energy from “renewable” sources.  The supply of efficient energy would drop in order to encourage production and consumption of inefficient energy, and prices would skyrocket as a result.

Barack Obama himself admitted, as a presidential candidate, that rising energy prices form a crucial component of emissions regulation.

It’s not just energy prices that will rise.  Prices for virtually all other goods and services will rise as well, because it takes energy to produce them.  It takes energy to get a vegetable from a farmer’s field to your kitchen table.  It takes energy to plant the vegetable, cultivate it, harvest it, transport it, keep it fresh, sell it in a lighted grocery store, drive it from the grocery store to the house, and cook it.

If energy expenses increase at every stage of the vegetable’s journey, what will happen to the price of the vegetable?  It will rise.  And rising prices will have the worst impact on the poor.  Before Christians jump on the bandwagon of carbon politics, they would do well to think through not just the good intentions of climate policy, but the real-world consequences.

Read “In the ‘Green’ Economy, the Poor Pay More” on the Acton website.

Blog author: jballor
posted by on Tuesday, December 22, 2009

A new NBER working paper promises to blow up the myth that it is primarily the wealthy that will bear the cost of taxes on carbon emissions. In “Who Pays a Price on Carbon?” Corbett A. Grainger and Charles D. Kolstad explore the possibility that “under either a cap-and-trade program that limits carbon emissions or a carbon tax that imposes an outright tax on these emissions, the poor may be among the hardest hit. Because they spend a greater share of their income on energy than higher-income families, households in the lowest fifth of the income distribution could shoulder a relative burden that is 1.4 to 4 times higher than that of households in the top fifth of the income distribution.”

One of the assumptions of the study is that “all costs are passed on to the consumer,” which seems to be appropriate given the state of things in the oil refining business, for instance. As Christopher Helman writes in Forbes, “Even though rising fuel costs and taxes can mostly be passed along, they depress demand for refining. That causes refining margins to implode.” This brings up another set assumptions in the NBER study, however, that doesn’t account for modifications in demand, worker wages, or investor returns.

The authors are also improbably sanguine about the possibility of using the government to redistribute tax revenues to the poor to offset the regressiveness of the tax: “A price on carbon could yield substantial government revenues, and careful recycling of these revenues could offset the regressive nature of a national GHG [greenhouse-gas] emissions policy.” These revenues could also form the basis for a whole new government bureaucracy, which is much more likely than “careful recycling.”

But even with all those caveats, the point that the poor are almost always disproportionately impacted by policy decisions like this is an important one, which raises moral considerations beyond the dominant paradigm surrounding the question of carbon emissions, which simply pits the the impoverished two-thirds world against the developed world.

Blog author: jwitt
posted by on Wednesday, December 9, 2009

If you’re looking to catch up on the Climategate scandal, one of our interviewees from The Effective Stewardship DVD church curriculum, Steven Hayward, has an excellent summary and analysis here at The Weekly Standard.

Also, our friend Jay Richards has a good piece at today’s Enterprise Blog, which explains why attempts to settle the global warming debate by appeals to scientific consensus merely increase public skepticism.

And looking ahead, Paul Mirengoff of Powerline explains why the global warming lobby won’t need Congress in order to heavily regulate our economy’s energy sector. Hint: Oligarchy of Five

Blog author: ken.larson
posted by on Tuesday, June 30, 2009

Last week I took Friday afternoon off and did the yard work. I’d been listening to radio broadcasts about the vote in Congress on HR 2454 – what some of us call the “cap and tax” climate bill. You know, the one none of the members had read before the vote? Yes, I know, there’s more than one bill that they haven’t read prior to voting.

Yard work is good for my psyche. In two hours I can make a measurable and meaningful contribution to my property’s appearance. Few things in life are so neatly determinate; and the activity allows me to ponder other issues at the same time that I’m tilling and trimming.

My plan was to relax over the weekend in the run up to my birthday; and moving the yard work to Friday seemed appropriate. My modest Saturday agenda included helping to reduce the ironing pile by doing my half. My wife welcomed the help and suggested that I do the ironing first so I could also enjoy a Saturday morning ritual in doors — listening to “The Opera Show” on local FM station KUSC — and not having to use the pocket radio and earphones required when I’m outdoors.

During its season, KUSC hosts The Metropolitan broadcasts from New York, but the presentation last Saturday was a replay of the Los Angeles Opera Company’s April performance of Walter Braunfels’ The Birds, part of a series titled “Recovered Voices.” These are works by Jewish composers and musicians that were banned by the elected German Chancellor Adolph Hitler before and during the WWII era’s Holocaust and have been nearly forgotten.

Aristophanes’ play The Birds is a “comedy” written around 430 B.C. that pokes at the antics of Greek politics, specifically Athens’ leader Cleon, and at what was termed “the noble lie” at the time. The plot — VERY briefly described — follows the trek of two disgruntled humans who are lead by a raven and a crow toward a life among the birds which they are assured will be free from strife. You can imagine that there’s a bit of Plato’s philosopher-king tossed in for good measure. And with characters named “a sycophant” you can imagine how in the Germany of the 1930s a man with Braunfels’ talent might see some sardonic fun in using this plot to frame a libretto for his very solid musical creation.

Only minutes into my ironing the iron gave out: not enough heat and not enough steam. On the drive to the local Target — my wife went along — I continued to listen to Braunfels’ haunting music. Our beeline to the shelf and through the checkout line took only minutes, but on the way my eye caught an item in that area where picture frames are marketed. It was a 24″ x 36″ framed poster of Barack Obama and the text “Yes, We Can…” at the top. There was more text — the entire ‘yes we can’ speech. No, Really!

I asked my wife, “Did Dayton Hudson get TARP money?”

As we walked out to the car a guy with arms and legs full of tattoos was escorting a scantly dressed woman equally decorated and pierced into the store. I made a remark to my wife. She responded, “You don’t get out enough.”

At home I unpacked the new iron and began the process of dismantling the protections made mandatory by the same kind of folks who hadn’t bothered to read HR 2454. First the plastic tie that loops through the holes in the plug tips. You have to cut it away. As I untwisted the wire that bound the cord I noticed and took time to read the attached white label.

Warning: The power cord on this product contains lead, a chemical known to the State of California to cause cancer, and birth defects or other reproductive harm. Wash hands after handling.

I learned to iron when I was in sixth grade after my mom went to work to earn the extra money that paid for my brother and I to have orthodontic braces: a gift for which I will be eternally grateful. Her lessons and my vast experience in ironing has paid off in unnamed ways. It was the era when what today we’d call Chinos or Khaki trousers replaced Levi’s for a time. It was also the era before clothes dryers; and one of the devices to make pressing your pants easier were metal stretchers that gave the air dried pants a rough crease to perfect. Ironing can refine one’s eye for detail.

As I listened to Braunfels’ melodies and maneuvered the iron around the yoke of each shirt in a process developed over time but yielding to modification for the short sleeved “polo” shirts on the pile I allowed myself to be drawn to those days in the early 60′s when the Ivy League style predominated and the button at the back of the collar just above that centered pleat prevailed. There was also a buckle on the back of the trousers, above the pockets and just below the belt loops. I also thought about things like why women’s blouses button the opposite way from men’s shirts. I wondered if a “Kingston Trio” CD wouldn’t be more appropriate than Braunfels’ opera on the radio.

It just may be for me that ironing is right in there with yard work. A time for reflection that also allows bona fide, measurable results relatively quickly and without malice toward another. I’m not sure that people reflect so much on things these days. That vote on HR 2454 last week seems to confirm my hunch.

Simple, mundane tasks can direct us. And while I haven’t done any extensive research on the subject I have a sneaking suspicion that something was lost and ordered liberty may have began to unravel with the introduction of the inherent lie of “permanent press.” That wrinkled look of wash and wear may excuse ironing, but what’s replaced that saved time? Certainly not paying more attention to who’s being elected or what Target is hawking in their stores.

Walter Braunfels might have had some advice for us about what posters of a political leader for sale in a store can portend but he died in 1954. But there are clues as in stories like The Birds.

The newest issue of Michigan Science has been posted by the Mackinac Center for Public Policy. I especially enjoyed reading Deneen Borelli’s piece on the failed “cap and trade” legislation titled, “Just the Facts.”

Borelli looks at what cap-and-trade legislation would mean for Michigan consumers and businesses. She and I both noted in articles the hardest hit would be households with lower income. It seems like an obvious point, but it is still amazing that many policy makers and religious leaders actually endorsed the legislation, considering a further increase in energy prices by legislative fiat is ill timed. Unfortunately, as I pointed out in my June commentary, we probably haven’t heard the last of cap-and-trade. Many new green policy initiatives serve as the new vehicle of choice for those who favor more government spending and regulatory action.

Also in the current issue of Michigan Science, I contributed an article on Central Michigan University students who dominated the state GIS competition in Livonia, Michigan.

Juliet Eilperin, “Bush Pollution Curbs Are Rated Equal to Clinton’s: Science Panel Says Proposed Cap-and-Trade System Will Help Clean Air,” Washington Post, July 24, 2006:

The report from the National Academy of Sciences, released yesterday, represents the latest effort to assess how best to reduce air pollution estimated to cause as many as 24,000 premature deaths each year. The panel concluded that an earlier Bush plan would have allowed pollution to increase over a dozen years, but it found that the administration’s more recent Clean Air Interstate Rule (CAIR) — which targets emissions from power plants in 22 states and the District of Columbia — would help clean the air over the next two decades.

The CAIR approach aims to reduce nitrogen oxide and sulfur dioxide emissions by 70 percent by 2025 at the latest, according to the Environmental Protection Agency, through a system that would allow utilities to sell and buy pollution credits as long as industry emissions as a whole stayed below a pre-set cap.

Cap-and-trade schemes may be better than command-and-control techniques, but maybe they’re not all they’re cracked up to be.

Hugh Ross, “The Faint Sun,” Facts for Faith, Reasons to Believe, 2002:

The timing of humanity’s arrival—near the end of life’s long tenure on Earth—may appear tragic at first glance. But a longer look suggests it may be viewed as a gift. Scanning the horizon of civilization—farms, ranches, towns, cities, and all the transportation and communication arteries linking them—one sees a plethora of building materials derived from nearly 4 billion years of life and death: gems, sand, steel, asphalt, concrete, copper, limestone, marble, plastics, etc. Most of the energy that drives civilization comes from biodeposits—oil, coal, wood, kerogen, natural gas, and so forth. Many of the fertilizers that support agricultural production also come from biodeposits—phosphates, nitrates, and such.

Such bountiful provisions powerfully indicate a Provider who carefully planned and prepared the planet through the ages for human life. They speak of a purpose for the human race. The Bible reveals a purpose that involves, yet goes beyond, the current “heavens and Earth.”

More here on the providential purpose for petroleum. (HT: John Linsley of RTB)

Associated Press, “Christian Ministry Wants to Build Turbines to Spread the Gospel,” The Church Report, July 23, 2006:

A Christian ministry group wants to build 36 wind turbines on the roof of a former steel company to generate money to help spread its message….

Energy produced by the turbines will be sold back to Wisconsin Energy Corp. through a buyback program.

More here on these so-called “Cuisinarts of the air.”