Tim Dechristopher, Environmental Hero

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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Tags: BritishColumbia, Carbon Tax

Sanders, Leahy re-introduce Jeffords global warming bill – Boston.com

“The good news is that we know how to address the problem. The bad new is that, for many years now, government policy has been totally inadequate,” Sanders said. “The forward-thinking legislation will put the United States on track to lead the way toward a cleaner future for all and I look forward to strong support as we push to protect our planet.”

The bill was originally introduced in July of 2006, when it (predictably) went nowhere. Here is Sanders’ summary of the bill.

The Global Warming Pollution Reduction Act calls for carbon dioxide (CO₂) and other heat-trapping emissions to be reduced to 80 percent below 1990 levels by 2050.

80% is the reduction called for in the Stern Review as well. The point is to stabilize global concentration at 450 ppm.

It is still early to say what the prognoses in the Congress and Senate are, but one thing is sure, the US emperor will veto it. The point is, however, to establish this bill as the starting point of any negotiation/bargaining that will surely occur.

I happened to watch an interesting short film called After the Peak about peak oil, the concept (not that revolutionary unless you ask Messrs  Exxon-Mobil, Shell and Dick Cheney!) that oil production will start declining after a certain peak production event. The docudrama made by local film maker James McQuaid was part of a public meeting on the local (Orange County, NC) responses to the coming energy crisis. Interesting conceptually, it was shown as a 30 minute local newscast, with the usual cast of characters, the too handsome eye candy anchor and his female sidekick, the young and breathless “street reporter”, the gray haired expert, and the uber-energetic sports guy! The newscast is set a year into the future when the price of gas is $10/gallon. The documentary of interviews with various community members about the effects of the price of gas on their business/life. In the 30 minutes, he touched upon food, school buses, sports, NASCAR, the poor, commutes, etc. It was an interesting effort, if a little over the top! The fake interviews with the racing track owner who’s closing his track down, the UNC athletic director who has to cancel all his long distance events, the manager of the local food store who threatens food scarcity.

But is $10 a gallon really a big deal?

This simple chart shows income adjusted dollar per gallon gas prices (gas prices from 2006, income from 2004, but it should not change too much.)

Let’s avoid the low income outliers and just compare the U.S and Germany. In April 2006, the U.S was paying $2.95 a gallon and Germany, $8.06 per gallon (ref). If you further adjust that with the per capita income of the two countries, $41,300 for the U.S versus $30,500 for Germany (ref), you will find that the price of gas in Germany is well above $10 a gallon already, they seem to be doing just fine! Maybe they just drive less. The US uses 381 million gallons of gas per day (that’s about 1.2 gallons per day per person). I agree that this comparison is a little flawed because the bulk of the German price is due to taxes, which go back to the government and are presumably used for various good deeds. Also, if the price of gas went up due to shortages, the price differential between Germany and the US would presumably stay constant (unless the Germans lowered taxes). My point is that many countries cope with high gas prices quite well, they just don’t make the same choices the Americans make, 1 acre lots, large SUVs, super long commutes, etc. There are a lot of efficiencies to be had here. The graph below shows the income adjusted gasoline price for a few countries (easy data was available!)

My take: we need to swiftly move away from gasoline by a) Disincentivizing the use of gasoline in transportation b) Incentivizing the use of electricity for transportation. Electricity can be produced more efficiently, and pollution at the source can be controlled more effectively. A combination of a drastic increase in solar and wind power, coupled with aggressive development in battery technology should more than solve our problem without much recourse to biofuels (that great boondongle).

In 2002, Ireland passed a tax on plastic bags; customers who want them must now pay 33 cents per bag at the register. There was an advertising awareness campaign. And then something happened that was bigger than the sum of these parts.Within weeks, plastic bag use dropped 94 percent. Within a year, nearly everyone had bought reusable cloth bags, keeping them in offices and in the backs of cars. Plastic bags were not outlawed, but carrying them became socially unacceptable — on a par with wearing a fur coat or not cleaning up after one’s dog.

Motivated by a Tax, Irish Spurn Plastic Bags – New York Times

Turns out that you can swiftly alter habits, attitudes, perception and behavior by charging people 33 cents per bag! Plastic bags are a convenience only because they are free.

Also, if you read the entire article, you will realize that ad-hoc, voluntary, or piecemeal approaches by individual retailers, cities or states will not make as much of an impact as a national policy.

All hail Ireland!

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Tags: PlasticBags, Environment