If everyone were consuming the same amount/causing the same amount of emissions, this would be a no-op. However, since the rich tend to consume more, this will be a net positive for poorer people, and at the same time it will make decisions about activity that causes emissions more meaningful.
It's also much more palatable than bans or rationing, reasonably easy to implement, and avoids the trap of populist "ban highly visible thing of the day" approaches that tend to lower quality of life without addressing the real issue.
Yes, billionaires with private jets tend to consume more but your average multimillionaire is probably working remote from a cushy white collar job while poor people need to commute to and from work (often long distances because rent is expensive). CO2 taxes are regressive however you try to sell them.
Second, even if it were true, you'd still have control over how you redistribute the revenue, and as a result, you can make the net effect as progressive as you want.
[1] https://oxfamilibrary.openrepository.com/bitstream/handle/10...
In practice billionaires wouldn't care how much you tax them unless you taxed a substantial portion of income, they'd still consume what they wanted. In order to materially change even middle class peoples' behavior prices need to change by double digit percentage points, and when you factor in that people don't spend all they earn, that's a lot of tax.
If there is a CO2-heavy option that's 10% cheaper than the "green" option, introducing the tax will suddenly make the "green" option the cheaper one.
This could be using an electric truck to get food to the store, it could be using a heat pump instead of an oil furnace, it could be the locally grown potatoes instead of potatoes that were trucked over a long distance from a place with cheaper labor, etc.
Most of the savings won't happen because the millionaire flies less, they will be made because someone, somewhere along the supply chain makes a different decision because the environmentally friendlier thing is now cheaper. That's the beauty of it - it's about fixing the emissions where the best effect can be achieved with the smallest investment, not about taking away people's ability to consume and live an enjoyable life.
Smaller processes that produce CO2 through actual emissions will probably fall through the gaps, but they're not critical in the big picture. Most will be covered through taxes on the fuel or energy. I'd expect most of the electric truck battery emissions to come from energy, either during the assembly of the cells or production of the ingredients.
> If you tax only direct emissions you motivate companies to amortize emissions by concentrating them during manufacture.
I do not understand. Indirect emissions are direct emissions at some point, and that's where they get taxed. The cost then gets passed along, creating an incentive to either buy from a supplier that can produce the same thing more cheaply by reducing emissions, or finding a substitute product that's cheaper because it's less emissions-intensive to make.
The real problem is imports from countries that do not follow an equivalent tax regime. I suppose here approximations will be necessary, and by making them overly generous, other countries have an incentive to join the scheme.
What if it's a giant shipping boat with thousands of containers?
The diesel fuel that the train company will buy has already been taxed at the refinery (if it's a diesel train). The gas that the power company will burn to generate power for an electric train has been taxed at import. The train company will simply pay the price of these goods, tax included, and pass this cost on to the owners of the goods being shipped. How is up to them.
Likewise, the "hidden" emissions from the production of the train are likewise "hidden" in its price: The steel that the train was made from was already taxed when it left the steel mill (not 100% familiar with steelmaking, but this may be one of the cases where it's insufficient to just tax the inputs since the steel mill might emit GHG that don't just come from fuel). The cost of the energy used in processing that steel already contained the cost of the emissions tax that was initially levied on the fuel. etc.
Firstly, what kind of excuse is this - imagine the same argument applied to social networks, should they just leave child porn on their websites because it too difficult to keep track of? What if a social network has billions of photos? Business has to follow the law, just like I do.
Secondly, we have armies of people collecting data on these containers and doing data science to manage and optimise supply chains, and they have the containers, their weights and contents documented for customs, to make sure they are safe and not overloaded, for insurance purposes, so they can be delivered to the right customer, many containers are independently GPS tagged, etc.
All this data already exists for every major carrier, haulage, etc. The hard part is like one guy delivering donuts part-time, but we don't need to go after that.
That electric car battery might be manufactured in China using coal power and shipped over the ocean in a diesel fueled ship and yet pay no tax, making an American-manufactured battery even less competitive.
Of course there is the question about people that simply _store_ carbon, e.g. what if there's a coal mine where the buyers of the coal don't actually use the coal for its energy purposes but instead for, say, makeup creation, or wood for building? We would probably have to work out special licensing for non-usage purposes and that's where it would probably get tricky.
Adding a tax on the carbon content of fuels will push that even harder.
There are no answers given usually, less so convincingly, mostly because the ones demanding scarcity are usually not the ones affected by it.
Just trying to find one member of the working class / blue collar amongst ExtencionRebllion and the like will be a tedious task. Not so much if you look for kids of millionaires, or of bilionaires. Or Millionaires and Billionaires themselves.
As of now I can only see two outcomes:
They either start making these scarcity demands a part of their foreign policy (meaning getting tough on the actual global polluters, not their domestic poor people who barely can afford one cheap vacation to the Balears per year).
Or we just start naming what we would have called it 150 years ago: A top-down class-war.
Meanwhile your "ExtinctionRebellion" phrase seems like a political touchstone that you assume other people know what you're talking about, but I have no clue what it is.
[2] https://en.wikipedia.org/wiki/Extinction_Rebellion_Youth
[3] https://en.wikipedia.org/wiki/School_Strike_for_Climate
Her Holyness [4] https://en.wikipedia.org/wiki/Greta_Thunberg
from 1968 [5] https://en.wikipedia.org/wiki/Club_of_Rome
and 1972 from that same club [6] https://en.wikipedia.org/wiki/The_Limits_to_Growth
and countless dystopian science-fiction literature and movies from that epoch.
edit: https://files.eric.ed.gov/fulltext/ED050960.pdf#page=13
"We have all heard about a population problem in the developing nations of Asia, Africa and Latin America, where death rates have dropped rapidly and populations have exploded. Only recently have we recognized that the United States may have population problems of its own. There are differing views. Some say that it is a problem of crisis proportions — that the growth of population is responsible for pollution of our air and water, depletion of our natural resources, and a broad array of social ills."
SUBTLE
For me gas prices in the UK, what really messed me up was the standing charges (daily charge for infrastructure) circa 2006 they doubled that but lowered the unit price which for the average family of 4 usage, worked out as a saving of £100 a year. Though as a single person, that change cost me near on £100 a year in extra standing charge and a saving of unit cost of £20 a year. I just find it annoying how most fuel usage pricing can and does actually penalise responsible low-usage users. Sure the more you buy the cheaper things get but when you get to climate, wear and tear upon the infrastructure - those users who don't have to worry about the money or have any care are reward by a fixed impact cost upon infrastructure - even if they use 10x more than somebody else - they both pay the same. Then the more they use - then costs become cheaper for them.
Pro-tip - slow baking a baked potatoes in the oven is a good meal that also warms the home so double usage of that fuel.
What would I change - well I'd quota people - additional quota's for medical conditions and other variable but the gist would be - fuel you use up to that quota then you pay X price per unit and the standing charge is dropped and worked into the price. Now, after you use your quota - you pay extra per unit of fuel. That way those who do the most impact are more fairly paying for it. Sadly it won't happen, but then - some serious action is needed upon climate change.
FWIW when I was more fiscally able (energy usage less than 1% of income)- my fuel usage was the same heating wise - always been a jumper if needed and going for a brisk walk does wonders for feeling warm.
Personal choice is meaningless wrt climate change. It's a topic that cannot be addressed without structural/societal changes, likely by legislation.
Industrial CO2 output doesn't just happen in a vacuum. It's a by-product for manufacturing things that consumers want/need.
Kurzgesagt's recent video (sponsored by bill gates notes)e xpressed the issue much better then I ever could, so i'll only link to it here.
It's a bit like most changes, they take time and sure my impact akin to a grain of sand in a desert, but then I feel comfortable with my choices and eventually over time, such choices will become less open as there will get a time in which government will act.
I'm mindful that many when it comes to change that is impaction can be a case of they don't so why should I and well I don't have too so I can do what I like and the pandemic as been most insightful into such mindsets. Hence we saw laws to enforces common sense in situations that had the people all been responsible, would not of been needed or come to pass. Hence I do expect the whole fossil/fuel/resource aspect of human consumption to become more and more regulated in years to come. Will it be done right is the question or will we just see those who can afford to be feckless, just as enabled as currently.
That's why I agree with you upon this and do foresee that legislation may well be the only way - alas the issue is global and that is a real cruz as when as countries tend to act as individuals and cases of - well they're not so why should we and other unfair arguments play out. So as always the politics becomes more an issue than the issue the politics is trying to solve.
For example: No one should be choosing between heating and eating, from a thermodynamic perspective. It's trivial to drastically cut heating energy through very low-tech methods: increasing insulation in the walls, and add extra layers of glass to your windows. The reason it's not done is because real estate developers have no incentive to increase their construction costs by some marginal amount since they know that natural gas cost is so cheap no customer is going to care about heating energy reduction. Not only that, most customers strongly prefer the cheaper construction once they're shown how many decades it would take for the better building envelope to pay for itself via energy bill reductions. Same reason there isn't a incentive to switch from (dirty) gas to electric, install solar panels, switch to heat pumps etc etc.
Now consider how building related carbon emissions make up about 40% of the total emissions, and you'll see how much of an infuriating obstacle cheap energy is in cutting carbon emissions.
Yes, there will be low-income people for who this will be a crisis, but that can be dealt with separately: government subsidies, or government subsidies of envelope retrofits (great stimulus idea). There is no reason frame this issue in a us versus them manner.
I can't believe people try to shrug it off as no big deal because the absolute carbon output is small, or postulating that they must have offset it. If there are two things people react badly to, it is injustice / unfairness, and hypocrisy. The ruling class has done more to turn the average person against their climate change proposals than just about anything else, in my opinion. Quite probably by design, such is the blatant audacity of their double standards.
Don't worry, The Smartest Guys In The Room went from 0 to 100 on this issue in 1969 when no major societal changes were going on and for no ulterior reason at all: https://files.eric.ed.gov/fulltext/ED050960.pdf
"The difference [in family size] is important not simply because of the numbers but because it bears vitally upon a fundamental question about the Nation's future: Do we wish to continue to invest even more of our resources and those of much of the rest of the world in meeting demands for more services, more classrooms, more hospitals, and more housing as population continues to grow?"
I live in a 100 year old, poorly insulated house with my family of 4, and we manage to use half of the average for a family house here. And we are not really trying, only thing we do is limit what parts of the house we heat (not the bedrooms) and set the temperature smartly.
I cycle 30km to my work on an electric bike to exercise and limit car usage.
So yes, I really don't think the price rise will have too much impact on consumers directly. I think most people in the Netherlands can halve their energy consumption here with very limited impact on QoL just by heating less and using their car less. And if the price really gets problematic our gov could just lower the taxation
On the flip side I respect your dedication to bike that much thru Dutch winter!
We do have lots of baby boomers in big houses that they heatup just for themselves. My mom has 4 times my heating bill by herself than I have with a family of four. It would solve a lot of problems if the elderly move to smaller houses and leave the bigger houses for families that need them.
A lot of places make that kind of swap uneconomical. From paying capital gains now instead of later, to loss of property tax increase exemptions to loss of property tax deferrals. Some places exempt gains on housing gains but not other gains (kinda a problem if you downsize and take a windfall)…
Many places ignore housing wealth when it comes to social assistance, but include everything else.
In most of the US that's a good way to land in the ER.
source: son t-boned on his e-bike 6 months ago
https://en.wikipedia.org/wiki/Haber_process#Sources_of_hydro...
Have you investigated if it is feasible to retrofit proper isolation? It has been fairly common here in Sweden, though I'd expect that by now most of the housing stock has good isolation. Stuff like triple layers of glass in the windows also helps a lot.
I must say though that a properly insulated house can have a better climate in winter as you can keep the humidity much higher.
I was hoping to make my own, but maybe I'll cave in and just use a Swapfiets electric...
It will probably will mean that you get less tired and exercise less, which may be good or bad depending on your opinion.
ROTFL. Like fertilizer production?
I really fail to imagine an unconditional transfer (like the one you are replying to) turning into a monster of untraceable rules.
This is reality today under capitalism. What happens to me if I don't choose to work?
Increased prices would clearly make it more expensive to raise children. This would lead to more social care towards people with children. How would you recommend solving that?
Reducing capitas will cause a much quicker and effective change than reducing per capita consumption.
I'm sorry, what's the issue? If we need children and need to incentivize it, it's what we'll do. And by definition, you're talking about advantages only to counterbalance new disadvantages. So we need to solve what?
I mean, if on one side we have exponential growth, and on the other we have no children leading to no one to support seniors, surely there is a middle ground where the right number of children are born each year.
On the other hand in Japan and elsewhere in developed countries women postpone having kids until in their in their 30s, because they're involved in the workforce.
So, one either ends up with exponential population growth or with the elderly working until they die and younger people postponing having chindren until mid age (with all the associated health issues, both for the mother and th child) or not having children at all.
It's rather hard if not impossible to keep a middle ground. As a woman one probably has to make a choice between bearing children after you finish college or getting a degree and joining the workforce. Guess what most women's choice is?
Taxation is a road to nowhere as rich people will always either find the way to avoid taxes or find the way to throw the costs of those taxes on the poor. This happens with every kind of tax.
The only solution to decrease CO2 emission is to behave in a rational way and use the only practical, tested and available now clean energy source - nuclear power plants. No amount of eco-talk will change reality that neither solar nor wind energy plants will be able to power modern economy. Europe is learning this the hard way right now.
Maybe Europe will do the suicidal jump with the ideas like "Fit for 55", and will kill its economy to lower global emission by 0.05% but the rest of the World, which emits much more CO2 and will emit even more when all production will be moved from Europe to Asia or USA cannot care less.
After all, the whole point of carbon tax is to reduce usage, not to gain revenue or penalize some people; so it works if and only if it meaningfully changes behavior, i.e. if the tax significantly raises prices of some specific market goods/services and thus drives people to use less of those specific goods/services. A simple income-proportional tax or just "tax the rich" doesn't incentivize reducing emissions, so it's useless for that goal; it's perhaps useful for social equity and wealth redistribution, but that's something not directly linked to climate change goals.
It's not about money, it's about CO2; driving deliveries needs to emit less CO2 so the goal is to either get more efficient deliveries (e.g. electric vehicles) or less deliveries (putting some of those delivery drivers out of jobs), and "who's paying for that" is just choosing the most effective means to achieve these goals.
It gives the delivery company a big incentive to switch to electric vehicles or ebikes or something more efficient. This harnesses market power to push companies to be more efficient with their resources: the ones who are more innovative at avoiding CO2 usage will see financial benefits.
The entire point of CO2 taxes is that you are supposed to avoid them.
Delivery emissions should be attached to the person getting the delivery. Otherwise you could just skip most of your emissions by having everything delivered.
Either way, it changes your behavior, because if delivery is more expensive (to factor in the externalities it causes) you will either consume less, or pay more. This ultimately "attaches the emissions to the person getting the delivery" but in a far less complex and less game-able way.
If I order something off Amazon, do I get a say in where the package is shipped from to control "my" emissions.
Yes, you would have to use some of your carbon credits to pay for the delivery and manufacture of the shoe. The product would have both a monetary and a carbon price. If you don't have enough credits, then you can buy some on the spot market from someone who isn't using theirs up.
This would incentivise repair of the shoe, as it may require fewer carbon credits.
https://www.reuters.com/business/energy/german-renewables-us...
If there really needs to be a carbon tax for delivery, it makes the most sense to transfer it directly to the consumer who demanded order-delivery. Any other mechanism will just leave a tax loophole.
And yes, emission taxes/standards should be applied to the whole world. Right now, they are adversely affecting the poor and lower middle class of the first world - none of whom are represented on HN. Meanwhile China can keep polluting away to its heart's content producing ~30% of the world's emissions by itself.
Yes, true. Guess what is used to compensate for lack of renewable output? Natural gas fired plants with short ramp up time. This will only drive electricity prices up.
The article is about gas shortages and people at risk of freezing this winter, yet almost everyone here is talking about CO2 taxes and taxing natural gas?
Probably yes, because that the whole point of Pigouvian taxes.
The distinction in the US is whether you make your money through labor (max 37% tax) or capital gains (max 20% tax). There is a lower tax rate for capitalists (who make money via ownership of capital) vs laborers (who make money through labor income). Furthermore, capital gains can be delayed until you realize your gains (sell your capital). This distinction is what practically gives the rich lower taxes than the poor.
Employers prefer keeping people full time and full time unemployed because it is more efficient per worker and the bargaining power of the unemployed doesn't exist. If everyone were to work according to their own demand for labor then this bargaining power cliff wouldn't exist and a whole lot of welfare programs could be abolished.
What my mother gets for old age pension is the same as the cost as a tank of heating oil for her house. Thankfully she doesn't need a full tank of oil each month and summer means less fuel burned except for hot water for the oil fired water heater. I do help my mom monetarily as much as I can but yes it is a huge burden for low income people to heat their homes.
There are countless policy choices that can help the less fortunate, the great majority of which are not incompatible with gas or energy being more expensive.
For example, I'm not a huge fan of agricultural subsidies, not because I want food to be more expensive, but because of the negative environmental and health effects they've had. But the money the government pays to farmer giants could instead be redistributed to poor people and (IMHO) help them a great deal more.
Likewise, revenue from taxes on things like gasoline could mitigate the effects of higher cost for low income families, which still encourage upper classes to invest in clean energy.
There's something to be said for taxing fossil fuels and paying that money back equally to everybody. People who polute will lose money, and people who don't will receive it.
However, people's health would probably be increased if we could provide people electric heat.
Also, like you said, cooking and heating with wood is terrible for the lungs and this has become much more very evident with COVID.
Yes, Global Warming is a problem but the people trying to keep themselves from freezing contribute a much smaller amount than Big-Tech and industry as a whole.
Trying to shift the blame from corporations on to people just trying to survive the winter is a tale of corporate white-washing/green-washing/hand-waving/lobbying.