British Columbia Introduces a Carbon Tax

Wow, I am already proud of my future destination, a carbon tax, no less. One that will start off at $10 per tonne of carbon (2.4c per litre of gasoline, or about 9c a gallon) and rise by a factor of three in a few years…

VICTORIA – Finance Minister Carole Taylor introduced an escalating carbon tax on most fossil fuels Tuesday, one she says recycles revenues back to taxpayers and businesses and is designed to ignite an environmental social movement in British Columbia and across Canada to fight climate change.And she’s handing every British Columbian $100 in June as seed money to get them thinking green.

The Canadian Press: BC introduces carbon tax, but off-sets increased fuel costs with tax cuts

The carbon tax advocacy center sets the required starter tax as 10c a gallon, BTW, so this measure by BC is no joke, it’s a serious effort to rein in CO2 emissions from the province. Carbon taxes are in general regressive as they are flat taxes, so the poor pay the same as the rich, but obviously will suffer more. So, what is the BC government doing to ensure that the poor don’t suffer?

The carbon tax revenue, estimated to hit $1.8 billion over three years, will be returned to taxpayers through personal income tax and business tax cuts, she said.The government will introduce legislation that requires it to table an annual plan that shows how the carbon tax revenue will be returned to taxpayers, Taylor said

Good words. But Taylor needs to realize that in the absence of well designed tax offsets, the people and businesses of BC will be at a temporary competitive disadvantage. It’s tricky to be an early adopter, but I am optimistic that BC will be the better for it.

Wonderful, now the rest of Canada (and the US) needs to follow suit. And, I look forward to blogging about Canada already, exciting!

Thanks of course to the grist for alerting me…

Update: An economist allays my regressivity and harm to business fears

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    The NY TImes on India’s Water Issues

    The New York Times starts a three part series on water issues in India.
    In Teeming India, Water Crisis Means Dry Pipes and Foul Sludge – New York Times

    The crisis, decades in the making, has grown as fast as India in recent years. A soaring population, the warp-speed sprawl of cities, and a vast and thirsty farm belt have all put new strains on a feeble, ill-kept public water and sanitation network. The combination has left water all too scarce in some places, contaminated in others and in cursed surfeit for millions who are flooded each year. Today the problems threaten India’s ability to fortify its sagging farms, sustain its economic growth and make its cities healthy and habitable. At stake is not only India’s economic ambition but its very image as the world’s largest democracy.

    This has not changed since I was a kid, we had the exact same problems growing up, and it is not likely to get any better real soon. Depressing to read first thing in the morning.

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    Numbers, policy and advocacy

    I got into a twitter discussion with Andrew Leach, who writes thoughtfully about energy policy and economics at his blog and occasionally for the globe and mail. The topic of discussion was a number put up by Bill McKibben of 350.org stating the following:

    By some calculations, the tar sands contain the equivalent of about 200 parts per million CO2

    Now this was a throwaway line in an article warning us that the Obama administration was not doing anything to stop runaway carbon emissions from coal and petroleum. But Prof. Leach made the point that this was a bit dishonest because at the current (and future) rate of oil extraction, it would take over 1500 years, and was  ridiculous. But let’s look at the calculation itself. 200 ppm seems like an outrageously large number. After all, the current concentration of CO2 in the atmosphere is 393 ppm. Is Bill McKibben actually saying that the taroilsands (I can’t pick on tar vs. oil, and I will campaign for taroil) can contribute half of what’s currently in the atmosphere? That can’t possibly be true. I mean, it is a huge project and all, but still, only 6.5% of Canada’s emissions in 2009.

    But, if you follow the mathematics:

    1. 1.75 trillion barrels of bitumen in place , as opposed to the 10% of that deemed recoverable in 2006 assuming 2006 prices and current technology.
    2. One Barrel is approximately 0.5-0.7 metric tons CO2 if you take into account both the production and the combustion. Note that there is a lot of uncertainty in this estimate because most of the data come from the Canadian and Albertan governments, and from the producers themselves, very interested parties. Let’s use the 0.7 for an upper end.
    3. 2.13 GT Carbon emitted adds 1 ppm of CO2 to the atmosphere.

    This gets us to approximately about 160 ppm. Note that the 0.7 MT of CO2 uses a number for land use that takes into account the current devastation of the boreal forest and peat bog. If all the oil needs to get out of the taroil sands, the land use number would explode and likely account for the remaining 40 ppm. Anyway, a rough calculation puts the 200 ppm number in context.

    But it is an unrealistic number, because taroilsands extraction is very energy and water intensive, time consuming, and promises to remain that way. Barring some magic technology that makes cheap energy possible, in which case, we’d just use that and avoid all the mess, we won’t ever get to that number.

    To summarize, 200 ppm is a reasonably accurate mathematical calculation that is wildly out of context. Sounds familiar?

    The larger point is that advocates of all stripes, politicians, lobbyists, chambers of commerce, industry interest groups, corporations, and organizations pushing against them use numbers to make things sound scary and big. People who rail against government spending routinely talk about Canada’s deficit being in the billions of dollars, but when we look at it as a deficit/GDP ratio, the numbers are under control, and there’s no need to panic. In advocacy, it’s great to find a number that makes a fantastic point, somehow to bring a message home. I am sure you remember this one in the wake of the BP oil mega spill. Businesses do this all the time as well, with much greater success. I’m sure you’ve heard this trope about small businesses being the engine of job creation based on just the gross number of jobs they create. Yes, but they’re also the engine of job destruction because they go under a lot, but we don’t see that often.

    As someone who has all their training as a scientist, and who does not like numeric misleading, being an activist/advocate is tricky. You work with people who are (rightly in many instances) trying to fight bad policy, and bad outcomes. The taroilsands are terrible, especially given that we’re cooking the planet and we’re deliberately spending billions of dollars investing in them. Regardless of whether they’re going to be responsible for 20 ppm, or 200 ppm, the trajectory of investing in an especially inefficient fossil fuel extraction when we should be phasing out all fossil fuel use is the big egregious wrong here. You are also trying to influence a public that finds it very hard to put numbers in context. No one will ever see a billion dollars, there’s no perceived difference between a million barrels and a trillion barrels, it’s all big numbers! So, the temptation is to use big numbers to scare people. I can understand how that happens, but I can’t bring myself to necessarily be okay with it. I will tolerate it, I guess, because the corporations, governments who produce the raw data underlying these numbers know what they mean, but distort them continuously to serve their agenda, and the media, some of whom are number literate abet this misleading. So some push back is necessary, but I will roll my eyes when it happens.

  • Apparently, the Earth is warming up…

    story.global.warming.2.jpgAnd Dog bites man, yet again, it’s amazing how they keep doing that. Think of all the money being wasted on re-proving the obvious, this is money not spent in mitigating the effects, money not spent on research, money not spent on encouraging people to use more efficient lighting… It’s a shame.

    CNN.com – Study: Earth ‘likely’ hottest in 2,000 years – Jun 22, 2006

    Climate scientists Michael Mann, Raymond Bradley and Malcolm Hughes had concluded the Northern Hemisphere was the warmest it has been in 2,000 years. Their research was known as the “hockey-stick” graphic because it compared the sharp curve of the hockey blade to the recent uptick in temperatures and the stick’s long shaft to centuries of previous climate stability.

    The National Academy scientists concluded that the Mann-Bradley-Hughes research from the late 1990s was “likely” to be true, said John “Mike” Wallace, an atmospheric sciences professor at the University of Washington and a panel member. The conclusions from the ’90s research “are very close to being right” and are supported by even more recent data, Wallace said.

    The panel looked at how other scientists reconstructed the Earth’s temperatures going back thousands of years, before there was data from modern scientific instruments.

    For all but the most recent 150 years, the academy scientists relied on “proxy” evidence from tree rings, corals, glaciers and ice cores, cave deposits, ocean and lake sediments, boreholes and other sources. They also examined indirect records such as paintings of glaciers in the Alps.

    Combining that information gave the panel “a high level of confidence that the last few decades of the 20th century were warmer than any comparable period in the last 400 years,” the academy said.

  • EPA Accused of Flouting Supreme Court – washingtonpost.com

    You may remember from a few weeks back when the supremes in a very rare unanimous decision ruled that the Duke Energy would have to install new pollution controls if it made modifications to its power plants that increased annual emissions without increasing hourly emissions. Well, never mind that, the EPA released a “rule” that “clarifies” this issue.

    EPA Accused of Flouting Supreme Court – washingtonpost.com

    The government proposed a pollution standard for power plants Wednesday that critics said flouts the spirit of a Supreme Court ruling on clean air enforcement.

    The proposal would make it easier for utilities to expand plant operations or make other changes to produce more electricity without installing new pollution controls.

    The proposal would allow the use of average hourly smokestack emissions when determining whether a plant’s expansion or efficiency improvements require additional pollution controls. The EPA hopes to make the proposal final before year’s end.

    Opponents of the hourly standard recently argued before the Supreme Court that this standard lets a plant put more smog-causing chemicals and other pollution into the air, even if hourly releases do not increase.

    Environmentalists long have contended the EPA should continue using annual emissions to determine whether new pollution controls are needed under the Clean Air Act.

    Let’s get this straight, “environmentalists contend”? There is nothing to contend here, it’s simple math. If you keep hourly rates the same and run your plant for longer, you will emit more pollution, which is not good. Less pollution good, more pollution bad, there is no point of contention here. Hourly standards and annual standards are used for two different things. The hourly standard sets a lower limit on the efficiency of the pollution control operation for the plant. The annual standard measures the plant’s overall impact. Both of them need to be regulated. It is only common sense that if you put out twice the amount of pollution in a year because you run 20 hours per day instead of 10, you need to control it. The Supremes rightly tagged this argument as dishonest, only to see the EPA very happily turn around and reissue it as an official rule.

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    Hog Factories Hit the NY Times

    The tale is told from the pig’s viewpoint. Of course, as I have mentioned before, hog factories are evil and affect the people (mostly poor and black) who live around them in very many horrible ways.

    Pig Out – NY Times

    Of the 60 million pigs in the United States, over 95 percent are continuously confined in metal buildings, including the almost five million sows in crates. In such setups, feed is automatically delivered to animals who are forced to urinate and defecate where they eat and sleep. Their waste festers in large pits a few feet below their hooves. Intense ammonia and hydrogen sulfide fumes from these pits fill pigs’ lungs and sensitive nostrils. No straw is provided to the animals because that would gum up the works (as it would if you tossed straw into your toilet).

    In my work as an environmental lawyer, I’ve toured a dozen hog confinement operations and seen hundreds from the outside. My task was to evaluate their polluting potential, which was considerable. But what haunted me was the miserable creatures inside.

    They were crowded into pens and cages, never allowed outdoors, and never even provided a soft place to lie down. Their tails had been cut off without anesthetic. Regardless of how well the operations are managed, the pigs subsist in inherently hostile settings. (Disclosure: my husband founded a network of farms that raise pigs using traditional, non-confinement methods.)

    The stress, crowding and contamination inside confinement buildings foster disease, especially respiratory illnesses. In addition to toxic fumes, bacteria, yeast and molds have been recorded in swine buildings at a level more than 1,000 times higher than in normal air. To prevent disease outbreaks (and to stimulate faster growth), the hog industry adds more than 10 million pounds of antibiotics to its feed, the Union of Concerned Scientists estimates. This mountain of drugs — a staggering three times more than all antibiotics used to treat human illnesses — is a grim yardstick of the wretchedness of these facilities.

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    A Company that Specializes in Profiting from Harm

    The LA Times has an interesting investigation on the activities of Amvac.

    Pesticide maker sees profit when others see risks – Los Angeles Times

    Amvac is a leading maker of organophosphates, a class of older, highly toxic pesticides that has been under regulatory scrutiny since the late 1980s. As larger firms have stopped manufacturing some of their organophosphates, Amvac has bought the rights to make or sell 10 of them since 1989, according to company records and interviews. One of them, mevinphos, was banned in the U.S. in 1994 after a study by the U.S. Environmental Protection Agency found that it was responsible for poisoning more field workers in California than any other agricultural chemical. Amvac continues selling the product overseas, according to company officials. Amvac is by no means the largest producer of pesticides that have attracted regulatory scrutiny, but the company stands out for its willingness to embrace chemicals that other firms have abandoned.

    Amvac Slogan

    Love that slogan, don’t ya’! There are so many loopholes in pesticide regulation that a company like Amvac can post impressive profits by using these loopholes, having a significant say in the writing of the regulation, and effortlessly denying and delaying action. It’s a well researched piece, read in full.