Energy analyst Alex Gilbert, in How Retiring Nuclear Power Plants May Undercut U.S. Climate Goals, by Brad Plumer, in The New York Times, June 13. (NB: Quote was stitched together from direct quote and reporter’s commentary.)
Why I Called Out My “Green” Mayor’s SUV Habit
I set off a media firestorm in New York City last week.
It was Friday morning, the day after Trump repudiated the Paris Climate Agreement, and Mayor Bill de Blasio was using his weekly “ask the mayor” turn on the popular Brian Lehrer radio show (NPR) to tell New Yorkers “We’re going to step up our game” to address climate change. I called in and the screener put me through as “Charles from Manhattan.” Here’s what I said:
Mayor de Blasio, you spoke eloquently a moment ago about stepping up our game in light of Trump’s withdrawal from Paris. How about you stepping up your game, leading by example, getting out of your SUV armada, and if you need to go to the Park Slope “Y” five days a week, rather than a gym near you, why don’t you take mass transit? Or even once in awhile ride a bike, like the vast majority of your fellow New Yorkers, so you will know how we are suffering under a transit system — yes governed by the governor, not by the mayor — but you need to lead by example.
I finished with this:
One of the reasons we are in this climate crisis is because the average person sees elites not playing by the rules that elites seek to impose on everyone else. And you’re not going to be able to lead when you’re sitting in your SUV being chauffeured every day, twelve miles from Gracie Mansion to Park Slope just so that you can ride an exercise bike.
Then it was Mayor de Blasio’s turn. He defended his climate record and called my criticism “cheap symbolism,” as reported by Politico (abridged slightly here):
Charles, I understand the emotional appeal of what you’re saying but I’m just not going to take the bait, my friend.
I have instructed folks in my government to turn our fleet into electric cars. We are moving to renewables, we are retrofitting our buildings, that’s the real leadership — it’s not whether I go to the gym.
Whether I go to the gym does not affect the policies that affect millions of people. I’m going to keep going to the gym. I’m proud to say we have a hybrid. It’s a good car, it’s very fuel efficient. I use the subway when it makes sense to use the subway, and I do stay in touch with what people are going through and I knew it for years and years, because for many years I never had any car.
So it’s easy for you to say that, but it doesn’t really have anything to do with how we change the world. We change the world with policies that affect people and the policies of this city are going to lead to addressing climate change in a much more aggressive way than it’s ever been addressed in the history of New York City.
But again, the issue is not cheap symbolism here. The issue is, are we gonna take action. That’s really the motherlode of addressing emissions in this city. It comes from buildings. We’re going to be very very aggressive about that.
That was that, or so I thought. What I soon learned was that the City Hall media bullpen was going nuts. One of the reporters put my voice together with my first name, and the papers started calling for quotes. By nightfall, their stories were up, with front-page headlines in the Daily News and the NY Post branding the mayor a “green hypocrite” and even the staid New York Times putting my exchange with the mayor at the top of its Metro section.
I was able to go deeper in those interviews. My most-teachable moment came on Saturday. The NY Post was doing a follow-up and I said that transit riders “need a voice and we don’t have one,” when neither the mayor nor the governor rides a subway or bus.
There are levels galore, here. Let’s unpack them.
First, when we quantify the direct carbon consequence from the mayor’s mini-fleet of SUV’s from home to gym, we see it’s really small: just 24 pounds of CO2 per trip, which monetizes to a mere half-a-dollar’s worth of climate damage.
(Burning one gallon of gasoline releases 19.57 lb of CO2, we’ll call it 20 lb. Let’s assume two SUV’s, each averaging 20 mpg, though actual mileage is probably less. They’re going 12 miles, so we get 2 (vehicles) x 20 lb/gal x 1/20 gal/mile x 12 miles, which yields 24 pounds of CO2. In 2015 Pres. Obama directed federal agencies to use a “social cost of carbon” of $37 per ton of CO2, in 2007 dollars; that equates to $44/ton in 2017 dollars, which is just 2.2 cents per lb of CO2. So the mayor’s 24 lb per trip is imposing a direct climate cost of 53 cents (24 lb x 2.2 cents/lb).)
It’s true that the official U.S. cost of carbon (since rescinded by Trump) is a low-balled estimate, but even quadrupling it raises the direct climate cost of the mayor’s tailpipe CO2 to just two bucks — befitting the fact that global CO2 is the end-product of billions of actions that are individually insignificant but collectively fraught.
A second level of costs arises from the spatial impacts from driving in a dense city. These are experienced most acutely as traffic congestion and its attendant time cost. And here I mean not mayoral time lost to traffic (since de Blasio gets to read and talk by phone while being ferried to the gym) but the time his auto trip effectively takes from others on the roads, by virtue of occupying space and slowing them down.
As long-time subscribers to this blog may know, I’ve done a lot of analysis of traffic congestion costs in New York City, even to the point of quantifying the time costs from a single additional trip in or near the city’s Manhattan core. This analysis is embedded in the kaleidoscopic spreadsheet I maintain to model “congestion pricing” for New York (download here, Excel required; go to Delays and Delay-Costs tabs) but more conveniently summarized in Time Thieves, an article I wrote a half-dozen years ago with then-Princeton student Will Fisher.
The takeaway for our purposes is that a single mile driven by just one vehicle during ordinary congested conditions in or near Manhattan slows down other vehicles by a combined 8 or 9 minutes (think of it as hundreds of vehicles delayed by a few seconds each). Factoring that by the 24 miles in the mayor’s ride to the gym (12 miles by 2 vehicles), the cars, trucks, cabs and buses in the mayor’s “traffic field” are absorbing an aggregate slowdown of 3 to 4 hours. By any reasonable estimate of the average value of time of those vehicle users, the aggregate cost of the time taken from them by each mayoral ride from his residence to his gym is easily in excess of a hundred dollars.
That’s two orders of magnitude greater than the direct carbon cost per trip — indicative of the fact that traffic congestion manifests as an inefficiency problem far more than as a climate problem, at least directly. It also demonstrates that the mayor’s (or any other New York car user’s) promise to switch to an electric vehicles won’t put a dent in the societal costs of driving in a congested metropolis.
Yet even those several hours of extra congestion dissolve into insignificance in a city of 8.5 million people and 2 million registered vehicles. The crux of the matter — which I tried to telegraph in my radio remarks but didn’t really nail until that second NY Post interview the next day — is found in this syllogism:
- New York City is inherently green by virtue of its urban density. This idea was most lucidly distilled by the writer David Owen in his 2009 book, Green Metropolis. Density both facilitates and enforces shorter trips, non-automobile travel, and compact and contiguous living and working spaces, all of which translate directly into smaller carbon footprints.
- What makes this density possible is our mass transit (subway) system. But it is deterioriating from insufficient investment in equipment and maintenance. (The local press corps is all over this; see for example these vivid stories last month by The Times’ Emma Fitzsimmons, 1 and 2.)
- Politicians are ignoring this crisis. Neither NY State Gov. Andrew Cuomo, who controls the state-chartered Metropolitan Transportation Authority, nor Mayor de Blasio, who has a voice in running the MTA along with a bully pulpit to call out problems and demand solutions, has stepped up to take responsibility. Neither of them ever rides a subway or bus, except in a photo-op.
It’s safe to say that Mayor de Blasio isn’t steeped in this logical chain connecting density, transit and leadership. For evidence, look no further than the end of his radio rejoinder to my harangue, in which he called the city’s building stock the “motherlode” of emissions and, thus, his climate focus. While it’s true that heating and powering the city’s offices and apartments generates a good deal more CO2 than fueling our cars and trucks, that’s because extensive and efficient mass transit keeps down automobile use. Take that away — as the governor and mayor are effectively doing by turning their backs as the subways fall apart — and transportation emissions will surely rise.
But the stakes are higher still. Low-CO2 NYC can’t grow or even maintain its current population without reliable and humane transit. Businesses and families won’t suffer a city dependent on undependable transit and will locate in less inherently-green cities or suburbs instead. And while in theory leaders could care enough about transit to make it work even if they never stepped onto a train or bus, ours have shown no inclination to do so in their combined decade in office (6.5 for Gov. Cuomo, 3.5 for Mayor de Blasio).
Maybe the only way the situation gets turned around is if each of them is stuck on a jammed, sweltering, subway … or is forced to wait on a packed platform as the minutes tick and the tension mounts. And not just once, but again and again.
That, in a nutshell, is why I called up and berated the mayor. As I told The Times, I’d been pondering it for weeks. The combination of Trump’s craven Paris announcement and the mayor’s wrapping himself in the mantle of climate savior gave me an opening and also pushed me over the edge.
I’ll close with a bit of irony inspired by Nicole Gelinas, the trenchant urban affairs analyst at the Manhattan Institute and New York Post columnist. In her Monday column, Bill de Blasio is a climate change hypocrite, she noted:
People will use less carbon — eventually — not because they’re nice, but because it will be more expensive. The world’s governments could achieve this effect more quickly through a carbon tax. Why not get it over with now? Because it’s too hard, politically and practically, to change people’s behavior by making them pay the full purported cost of carbon — that is, asking you to pay for next decade’s hurricane with your gas purchase today. (emphasis added)
Yes and no. Enacting a carbon tax is hard, but not necessarily impossible. But in this case, as we’ve seen, even a stiff carbon tax wouldn’t impel de Blasio to switch to subway from SUV; and that’s probably true even if he were paying for the ride from his own pocket.
What’s needed are new social norms that will make my radio complaint so ordinary that it’s not news; and unnecessary besides, because the idea of being chauffeured 12 miles to a gym would be nearly extinct. That is where a carbon tax would help.
The Four Best Reads on Trump and Paris
If you’re not shaken by Trump’s repudiation of the Paris Climate Agreement yesterday at the White House, you’ve wandered into the wrong Web site.
Those “individual nationally-determined commitments” whose sum is, or was, the Paris agreement may be woefully insufficient to stop climate ruin; yet reaching the agreement was an enormous step forward, marking the time the world began moving in concert, if haltingly, toward capping, reducing and eliminating climate-destroying emissions.
A transcript of Trump’s Rose Garden remarks is here, for anyone who cares to look. Rather than prate on, I’ve chosen to link to the four most penetrating pieces about this calamitous misstep that I’ve seen. Here are brief samples from each:
1. Mike Grunwald, in Politico, Why Trump actually pulled out of Paris
It wasn’t because of the climate, or to help American business. He needed to troll the world — and this was his best shot so far.
Trump’s abrupt withdrawal from this carefully crafted multilateral compromise was a diplomatic and political slap: it was about extending a middle finger to the world, while reminding his base that he shares its resentments of fancy-pants elites and smarty-pants scientists and tree-hugging squishes who look down on real Americans who drill for oil and dig for coal.
The real triumph of Paris wasn’t America’s promises; it was the serious commitments from China, India and other developing nations that had previously insisted on their right to burn unlimited carbon until their economies caught up to the developed world.
2. Paul Krugman, in The New York Times, Trump Gratuitously Rejects the Paris Climate Accord
As Donald Trump does his best to destroy the world’s hopes of reining in climate change, let’s be clear about one thing: This has nothing to do with serving America’s national interest. This isn’t about nationalism; mainly, it’s about sheer spite.
Pay any attention to modern right-wing discourse and you find deep hostility to any notion that some problems require collective action beyond shooting people and blowing things up.
Beyond this, much of today’s right seems driven above all by animus toward liberals rather than specific issues. If liberals are for it, they’re against it. If liberals hate it, it’s good. Add to this the anti-intellectualism of the G.O.P. base, for whom scientific consensus on an issue is a minus, not a plus, with extra bonus points for undermining anything associated with President Barack Obama.
3. 350.org founder Bill McKibben, also in The Times, Trump’s Stupid and Reckless Climate Decision
It’s a stupid and reckless decision — our nation’s dumbest act since launching the war in Iraq. But it’s not stupid and reckless in the normal way. Instead, it amounts to a thorough repudiation of two of the civilizing forces on our planet: diplomacy and science. It undercuts our civilization’s chances of surviving global warming, but it also undercuts our civilization itself, since that civilization rests in large measure on those two forces.
But it’s not just science that [Trump is] blowing up. The Paris accord was a high achievement of the diplomatic art, a process much messier than science, and inevitably involving compromise and unseemly concession. Still, after decades of work, the world’s negotiators managed to bring along virtually every nation: the Saudis and the low-lying Marshall Islanders, the Chinese and the Indians. One hundred and ninety-five nations negotiated the Paris accord, including the United States.
The changes [committed to at Paris], and similar ones agreed to by other nations, would not have ended global warming. They were too small. But the hope of Paris was that the treaty would send such a strong signal to the world’s governments, and its capital markets, that the targets would become a floor and not a ceiling; that shaken into action by the accord, we would start moving much faster toward renewable energy, maybe even fast enough to begin catching up with the physics of global warming. There are signs that this has been happening: The plummeting price of solar energy just this spring persuaded India to forgo a huge planned expansion of coal plants in favor of more solar panel arrays to catch the sun. China is shutting coal mines as fast as it can build wind turbines.
4. David Roberts in Vox, Trump’s Paris climate decision shows the threat rising tribalism poses to the planet
The hallmark of tribalism (a term I prefer to “nationalism,” as it gets at the deeper roots) is that it views the world in zero-sum terms — if one tribe benefits, it is at another tribe’s expense. As has been much remarked (see my post on Trump’s mindset), this describes Trump to a tee. He views all interactions, both personal and international, in terms of dominance and submission.
Tribalism has also entirely subsumed the US conservative movement. The intellectual core has all but rotted; what remains are older, rural and suburban white men and their wives, angry that their tribe is being demoted from its hegemonic position. At a barely beneath-the-surface level, Trumpism is about restoring old hierarchies: the powerful over the powerless, whites over minorities, men over women.
A zero-sum perspective is inherently hostile to collective agreements and treaties. It can only see such agreements as attempts by the weak to bind and restrain the strong (a theme that popped up again and again in Trump’s announcement on Paris). Trump was inclined to see things that way already, no matter what he was told.
That is the backdrop to Trump’s decision. It’s not that Paris particularly constrained him — it didn’t constrain him at all, actually — but the very notion of committing to collective action bothered him (and Steve Bannon). From his perspective, the US has tons of fossil fuels, and that gives the US power. Voluntarily reducing dependence on fossil fuels threatens US dominance.
Trump doesn’t just want that dominance — he wants to signal it, to shove it in other countries’ faces. Staying in the agreement, even if it was substantively meaningless, didn’t send the right signal.
McKibben ended his piece with this:
And so we will resist. As the federal government reneges on its commitments, the rest of us will double down on ours. Already cities and states are committing to 100 percent renewable energy. Atlanta was the latest to take the step. We will make sure that every leader who hesitates and waffles on climate will be seen as another Donald Trump, and we will make sure that history will judge that name with the contempt it deserves. Not just because he didn’t take climate change seriously, but also because he didn’t take civilization seriously.
Maybe it was the McKibben passage I put in bold that led me to call out my own mayor, NYC’s Bill de Blasio, for his transportation hypocrisy, on a radio call-in this morning. (Watch this space next week, for details.) A small step, to be sure, but I intend to take another tomorrow, and the day after, as I know you will as well.
Baker-Shultz carbon tax would let U.S. keep its Paris pledge
As the U.S. president holds the world hostage to his impending decision to accept or repudiate the Paris Climate Agreement, it’s worth noting that the United States could meet its Paris emissions pledge by adopting a Republican-branded carbon tax proposal.
That’s the so-called Baker-Shultz carbon tax devised by the Climate Leadership Council and released in February by a team of Republican luminaries headed by Reagan Secretary of State George Shultz and George H.W. Bush Secretary of State James Baker. The CLC proposal, dubbed “The Conservative Case for Carbon Dividends,” would tax U.S. CO2 emissions from fossil-fuel combustion at $40 per ton and return the revenues in equal shares to American families (thus the “dividends” in the proposal’s name).
As the Associated Press reminded us at the onset of the holiday weekend, “nearly 200 countries are part of the Paris accord and each set their own emissions targets, which are not legally binding. The U.S. pledged to reduce its annual greenhouse gas emissions in 2025 by 26 to 28 percent below 2005 levels, which would be a reduction of about 1.6 billion tons of annual emissions.”
With informed sources such as Inside Climate News and the New Republic insisting that Trump’s rescission of Pres. Obama’s Clean Power Plan puts our Paris target out of reach, we decided to run our carbon-tax spreadsheet model on the CLC proposal. The result was a bullseye: the model calculates that implementing an economy-wide charge of $40/ton of CO2 on U.S. coal, oil and gas combustion in 2018 would, by 2025, result in total CO2 emissions of 4,242 billion metric tons — a figure 27% less than 2005 baseline emissions of 5,812 billion metric tons. That’s smack in the center of our country’s pledge to reduce emissions by 26% to 28%.
Our numerical finding closely matches CLC’s own estimate of a 28 percent drop in emissions in 2025 vs. 2005 from the $40/ton CO2 charge. And while a majority of the forecasted reduction in emissions from today to 2025 would be in the electricity sector, the expected 45 percent share of reductions in the other sectors (passenger auto and air travel, freight movement, oil refining, etc.) is a big increase from those sectors’ 27 percent share of reductions from 2005 to 2015, reflecting the carbon tax’s power to reduce fossil fuels use more broadly than targeted regulations.
A few important details:
One, CLC’s modeling assumes a 2% per year real increase in the carbon tax following the initial startup at $40/ton. We’ve conservatively assumed zero increase, although our graph also shows a steeper reduction predicated on raising the initial charge by $5 per ton per year.
Two, our two curves coincide for the first few years and begin diverging only in 2021. That’s because we’ve built a “brake” into our model that limits the economy’s uptake of the carbon charge to a rate of $12.50 per ton per year; increases beyond that are carried over into future years. Thus, the full impact of the $40 initial charge imposed in 2018 isn’t felt until 2021.
Three, the U.S. Paris commitment of a 26-28 percent reduction applies to all greenhouse gases, not just CO2. But since non-CO2 GHG’s such as methane are considered to have more low-hanging fruit, on average, being able to achieve a 27% reduction in CO2 by 2025 should virtually guarantee hitting the target of 27% less greenhouse gases.
Note that we label the Baker-Shultz proposal “Republican-branded” rather than “Republican,” preferring to reserve the latter designation for current Republican office-holders. But it’s striking nevertheless that a carbon tax proposal advanced by erstwhile Republican icons — Messrs. Baker and Shultz held many other senior positions even beyond secretary of state — could enable the present Republican administration to meet our country’s Paris climate-protection targets, and to do so in a straightforward, non-regulatory, “market-friendly” fashion that was once considered a bedrock G.O.P. principle.
We’re updating our carbon-tax model to the latest (2016) baseline. Watch this space for its release in June.
“A climate solution where all sides can win”
Perhaps no one in the U.S. has done more lately to drive public and political opinion toward carbon taxes than Ted Halstead and his Climate Leadership Council. The council’s Conservative Case For Carbon Dividends is the first Republican-based carbon tax proposal to insist not only on starting high (at $40 per ton of CO2) but also “dividend-ing” the revenues to U.S. families rather than using them to pay for corporate tax cuts (as favored by the political right) or investing them in transit, renewables and other elements of “the just transition” (as favored by much of the left).
This income-progressive but limited-government path, which Halstead and the council astutely brand as Republican, has generated a broad swath of editorial support, not just on the two coasts but also in conservative, carbon-heavy Texas. Partly that’s because the proposal would downsize or outright rescind direct federal regulation of carbon emissions, which the council argues would be mooted by the market pull of a robust (and rising) carbon tax. It’s also because Halstead has the verbal facility and personal magnetism to make his points appealing and convincing.
Not just his first name, then, makes Halstead an ideal “TED” talker, as you can see in the 11-minute talk (13, counting Q/A with moderator Chris Anderson) he taped in April and released yesterday.
Below, we present an abridged version of Ted’s talk. The full transcript can be viewed along with the video presentation.
We need a killer app to climate policy. In the technology world, a killer app is an application so transformative that it creates its own market, like Uber. In the climate world, a killer app is a new solution so promising that it can break through the seemingly insurmountable barriers to progress.
These include the psychological barrier. Climate advocates have long been encouraging their fellow citizens to make short-term sacrifices now for benefits that accrue to other people in other countries 30 or 40 years in the future. It just doesn’t fly because it runs contrary to basic human nature.
Next is the geopolitical barrier. Under the current rules of global trade, countries have a strong incentive to free-ride off the emissions reductions of other nations, instead of strengthening their own programs.
Finally, we have the partisan barrier. Even the most committed countries are nowhere near reducing emissions at the required scale and speed. And the partisan climate divide is far more acute here in the United States. We are fundamentally stuck, and that is why we need a killer app of climate policy to break through each of these barriers.
I’m convinced that the road to climate progress in the United States runs through the Republican Party and the business community. So in launching the Climate Leadership Council, I started by reaching out to a who’s who of Republican elder statesmen and business leaders, including James Baker and George Schultz, the two most respected Republican elder statesmen in America; Martin Feldstein and Greg Mankiw, the two most respected conservative economists in the country; and Henry Paulson and Rob Walton, two of the most successful and admired business leaders. Together, we co-authored “The Conservative Case For Carbon Dividends.” This represents the first time that Republican leaders put forth a concrete market-based climate solution.
Our carbon dividends solution is based on four pillars.
1. The first is a gradually rising carbon tax. Although capitalism is a wonderful system, like many operating systems, it’s prone to bugs, which, in this case, are called “market failures.” By far the largest is that market prices fail to take social and environmental costs into account. That means every market transaction is based on incorrect information. This fundamental bug of capitalism, more than any other single factor, is to blame for our climate predicament.
In theory, this should be an easy problem to fix. Economists agree that the best solution is to put a price on the carbon content of fossil fuels, otherwise known as a carbon tax. This would discourage carbon emissions in every single economic transaction, every day of the year. However, a carbon tax by itself has proven to be unpopular and a political dead end. The answer is to return all the money raised directly to citizens, in the form of equal monthly dividends. This would transform an unpopular carbon tax into a popular and populist solution, and it would also solve the underlying psychological barrier that we discussed, by giving everyone a concrete benefit in the here and now.
According to the US Treasury Department, the bottom 70 percent of Americans would receive more in dividends than they would pay in increased energy prices. That means 223 million Americans would win economically from solving climate change. And that is revolutionary, and could fundamentally alter climate politics.
2. But there’s another revolutionary element here. The amount of the dividend would grow as the carbon tax rate increases. The more we protect our climate, the more our citizens benefit. This creates a positive feedback loop, which is crucial, because the only way we will reach our long-term emission-reduction goals is if the carbon tax rate goes up every year.
3. The third pillar of our program is eliminating regulations that are no longer needed once a carbon dividends plan is enacted. This is a key selling point to Republicans and business leaders. So why should we trade climate regulations for a price on carbon? Our plan would achieve nearly twice the emissions reductions of all Obama-era climate regulations combined, and nearly three times the new baseline after President Trump repeals all of those regulations. Our plan by itself would meet the high end of America’s commitment under the Paris Climate Agreement, and the emissions reductions would continue over time. We would end up with less regulation and far less pollution at the same time, while helping working-class Americans get ahead. Doesn’t that sound like something we could all support?
4. The fourth and final pillar of our program is a new climate domino effect, based on border carbon adjustments. Now that may sound complicated, but it, too, is revolutionary, because it provides us a whole new strategy to reach a global price on carbon, which is ultimately what we need. Once one major country or region adopts carbon dividends with border carbon adjustments, other countries are compelled to follow suit [to prevent paying border adjustments to countries with carbon taxes]. One by one the dominoes fall. And this domino effect could start anywhere.
Let’s take China as an example. China is committed to reducing greenhouse gas emissions, but what its leaders care even more about is transitioning their economy to consumer-led economic development. Well, nothing could do more to hasten that transition than giving every Chinese citizen a monthly dividend. In fact, this is the only policy solution that would enable China to meet its environmental and economic goals at the same time.
That’s why this is the killer app of climate policy, because it would enable us to overcome each of the barriers we discussed earlier: the psychological barrier, the partisan barrier, and, as we’ve just seen, the geopolitical barrier. All we need is a country to lead the way. And one method of finding what you’re looking for is to take out an ad. So let’s read this (shown at left) one together.
As US falters, Canada must lead movement on carbon tax
This post, which I co-authored with Josha MacNab of the Pembina Institute, appeared in The Hill last week in slightly altered form. — C.K.
Against the backdrop of a Trump administration seeking to drag the United States’ economy back to the coal age, Canada’s clean growth strategy is a breath of fresh air. Now more than ever, Canada needs to continue to innovate on decarbonizing its economy, and a central plank of that strategy is putting a price on carbon pollution.
British Columbia’s groundbreaking 2008 carbon tax introduced carbon pollution pricing to the Western Hemisphere. With 86% of Canada’s population now covered by a carbon price, and 100% to be covered by 2018 under the national benchmark, our country is well-positioned to be an international beacon of progress and a major competitor in the clean global economy.
Here are four big reasons Canada should strengthen its resolve to move forward on carbon pollution pricing.
1. Canada is not alone
Given the effectiveness of carbon pricing in reducing climate-damaging emissions, it should come as no surprise that 25% of global carbon pollution is already or about to be covered by a carbon price. That represents over 40 countries, including seven of the world’s 10 largest economies.
China has already piloted cap-and-trade in 5 provinces and 2 cities, making it the second largest carbon market in the world, after the European Union. Later this year China’s carbon pollution market is expected to go national, making it the world’s largest. Carbon pollution pricing is now a maintream approach and Canada is positioned to demonstrate how to do carbon pollution pricing well.
2. Carbon pollution pricing will help Canada become a clean tech powerhouse
The global clean tech market is currently worth $1.15 trillion and expected to more than double to $2.5 trillion in 2022, according to Analytica Advisors. Yet Canada’s share of this vital pie is shrinking (from 2.2% to 1.3% of the market over the last 10 years) as other countries outpace us in clean tech development.
Carbon pricing is one of the tools clean tech entrepreneurs cite as key to supporting innovation. By moving forward on carbon pricing and other clean growth policies, Canada can catch up and be positioned to take advantage of growing and shifting global market opportunities. Currently, 23% of Canadian clean tech exports are destined for non-U.S. markets, but this share is anticipated to increase to more than 30% in the next four years.
3. Carbon leakage and competitiveness concerns can be addressed by smart design
Identifying and mitigating competitive disadvantages must be a priority for Canada to ensure that pricing carbon pollution doesn’t result in carbon leakage and doesn’t adversely impact the economy. Canada’s Ecofiscal Commission estimates that around 5% of Canada’s economy (with variation between 2-18% depending on the province or territory) could be subject to competitiveness impacts if the country has a higher carbon pollution price than jurisdictions with whom we trade. Craig Alexander, chief economist at the Conference Board of Canada, recently argued that competitiveness impacts would be less than 0.15% of GDP and not a justification to delay.
Where impacts are felt, carbon leakage issues can be addressed by the design of the pricing framework. Any measures taken to address competitiveness concerns for emissions-intensive, trade-exposed sectors should maintain the incentive to reduce pollution, as well as be targeted, transparent, consistent, temporary and simple.
4. Carbon pollution pricing lets the market drive the solutions
Along with some 140 other countries, Canada committed 18 months ago in Paris to do its part to reduce carbon pollution sufficiently to stay well below 2 C of warming. In order to achieve that goal, government has two main levers with which to shift to a lower-carbon economy: pricing and regulation. As a market-based mechanism — with support from both ends of the political spectrum — carbon pollution pricing sets the rules of engagement and lets the market pick the most efficient and effective ways to grow the economy. It supports innovation and ensures that those technologies and solutions that deliver the best results are the ones that thrive and go on to be competitive exports to a rapidly decarbonizing global economy.
With the U.S. waffling on its commitment to the Paris Agreement, it’s more important than ever for Canada to step up to be a global leader and demonstrate that addressing climate change is how we will build a strong economy that can weather the storms to come.
Josha MacNab is the British Columbia director at the Pembina Institute, Canada’s leading clean energy think-tank. Charles Komanoff, an economist, is the cofounder and director of the New York-based Carbon Tax Center.
Remembering May 4
It would be nice if a time-traveler told us that some day May 4 will be remembered not as the day Obamacare began to be dismantled but the day Congress committed to taking on climate change – and doing it with a carbon tax.
As we know, the House voted today to pass a Republican bill that strips away essential features of the Affordable Care Act. The CBO had no time to score the bill; some Members (all Republicans) who voted for it evidently hadn’t read it.
If the Senate votes the same way, an estimated 24 million people and their families will suffer, some of them grievously, so that multimillionaires can pay less taxes and enforce their ideology that casts need as a moral failing rather than an opportunity (or, at least, obligation).
This tweet speaks for a lot of people:
https://twitter.com/TVietor08/status/860209068211806209
Yet also today, Thursday, a dozen Members of Congress, six from each party, introduced a climate study bill, one that “would create a commission to look for economically viable solutions to climate change,” as reported by Inside Climate News.
Yes, a measly study bill. But one that would create a bipartisan National Climate Solutions Commission directing the Government Accountability Office to survey and rank emission reduction policies. The eventual report, which would likely ratify a national carbon tax of some sort, could offer GOP denialists a way out of their obstructionism.
An identical bill, also called the Climate Solutions Commission Act, failed to pass in 2016. Nevertheless, Inside Climate News said that today’s bill introduction “reflects how a small but increasingly vocal group of Republicans is embracing the reality of climate change and pressing the issue in Congress.”
It’s hard to gauge whether and how much Republicans will ever come around on climate. Nor can we say just how many members who voted today for the GOP’s health care” bill will be drummed out of Congress next year, as Washington Post political blogger Paul Waldman demanded just hours after the 217-213 vote. What we do know is that millions of us are working on defending and trying to extend social and economic and racial justice, including affordable health care, and also organizing for climate.
The May 4 health care vote may prove to be a right-wing Waterloo. And, just possibly, the re-introduction today of the Climate Solutions Commission Act may start the ball rolling for a carbon tax that helps save the climate.
We’ll leave it there. You may want to read our March 17 post about another, Republican congressional climate resolution, along with our updated Conservatives page.
And this just in from ICN reporter Sabrina Shankman: the 12 bill sponsors are Representatives John Delaney (D-MD) and John J. Faso (R-NY), who introduced it, and Reps. Curbelo (R-FL), Deutch (D-FL), Meehan (R-PA), Fitzpatrick (R-PA), Lowenthal (D-CA), Peters (D-CA), Ros-Lehtinen (R-FL), Schneider (D-IL), Stefanik (R-NY) and Suozzi (D-NY). Representatives Faso, Curbelo, Meehan, and Stefanik also signed the 2017 House G.O.P. Climate Resolution linked to directly above.
We join New Jerseyans in marching for climate
What to do on April 29: march with hundreds of thousands in DC, or speak at the Bergen & Beyond Climate Rally, a “satellite” people’s march in New Jersey? The NJ rally was reachable by bike, so the decision was easy. I pedaled away from my house in lower Manhattan at 8 a.m, met my friend Josef at the foot of the George Washington Bridge bike path at 9, and we arrived at the Bergen County Courthouse in Hackensack before the 10 a.m. start. The ride was hilly and heavily trafficked, but nothing we weren’t used to. The rally was terrific, with 300 of us, fine music, energetic speeches and no shortage of great signs. Here are some, along with my remarks. Big thanks to rally organizer Janet Glass and photographer Jessie Glass. — C.K.
Let’s begin with good news: decarbonization of the world’s energy is under way.
U.S. carbon emissions fell last year, again, and are almost 15% less than in 2005.
China’s emissions have flatlined for three years running.
In Great Britain, birthplace of the Industrial Revolution, CO2 emissions have fallen to levels not seen since the late 19th Century.
The solar and wind revolution is accelerating.
Energy efficiency is now a profit center for business and industry.
This ought to be heartening. But at best it is a bare minimum.
And even this progress is under assault.
You and I know that. Which is why we’re here today.
More good news: hundreds of thousands of us are assembled today in Washington and cities and towns like this one across the country.
We’re standing and marching for climate and for each other.
We’re standing to turn American politics upside-down … or, I should say, rightside-up.
Like millions of Americans, we see what the GOP has become: a racket to restore patriarchy, extractionism and white supremacy.
And we see the Democratic Party for what it is: a well-meaning but too often frightened, ineffectual band of centrists who shy from the radical action we need.
At the March for Science last week, a sign said: Trust Scientific Facts, Not Alternative Facts, and we all agree.
To stop climate ruin, we need economic facts, and fast. We need prices of fossil fuels that tell us the truth about climate damage caused by fossil fuels.
We can get that economic truth with carbon taxes — not token carbon taxes, not Exxon-style carbon taxes, but robust carbon taxes that put the damage from carbon pollution squarely and fairly into the prices of fuels.
Like it or not, the prices of fuels and energy are a dominant factor in how we choose and use them — and, thus, in how much carbon pollution we generate.
The artificial marketplace advantage of unpriced carbon pollution has helped coal, oil and gas gain a stranglehold over our economic system and social structures.
We can break that stranglehold by charging fossil fuels for their climate damage. That’s the fast path we need to the clean energy future that will protect our cities, coasts and civilization, our farms and forests and all living beings, from climate devastation.
We can do this. We can build a grassroots tide so powerful that centrist Democrats who have shied from carbon taxes, and Republicans who belittle climate concerns altogether, will either come around or be booted from office.
Join Citizens Climate Lobby. Demand that your elected rep’s, and the people vying to replace them, endorse carbon taxes at the state and national level. And demand that 350.org, Sierra Club and other climate advocates do the same.
We can do this, we can tax carbon, while protecting the poor and the disenfranchised.
I want to end with a line from that soulful Isley Brothers song, Harvest for the World:
Gather everyone, gather all together. Overlooking none, making life get better for the world.
That’s what our climate movement is about.
That’s what the Resistance to Trump is about.
Thank you for being here. Gather everyone, gather all together. Overlooking none, we’ll make life get better for the world.
China’s change from being an opponent of climate action to a proponent of the same is likely a manifestation of the government’s deep concern about the political tensions created by severe urban air pollution.”
Jerry Taylor (Niskanen Center), Debating Carbon Taxes with Oren Cass (and Bill Gates), April 19, 2017.
https://niskanencenter.org/blog/debating-carbon-taxes-oren-cass-bill-gates/
It’s time for states to save the planet
State-level carbon taxes offer a path to the ultimate climate solution.
This post was first posted on the Huffington Post on April 26. It was co-authored with Yoram Bauman, the PhD economist who founded Carbon Washington and co-chaired the carbon tax initiative in that state last fall. Yoram was principal author of the new CTC report featured here.
The Carbon Tax Center is out with a new report timed to the surging climate movement. We surveyed all 50 U.S. states (and Washington, DC) to identify the ones with the most favorable conditions for enacting a statewide carbon tax. Joining the report is a toolkit to help advocates push for a carbon tax in their state.
Campaigns for state carbon taxes educate the public and advance the idea on the policy map. A carbon tax in one or more states will create facts on the ground that can appeal to the Left and Right alike and upend the climate stalemate.
The world’s leading climate experts agree that putting a price on carbon emissions is essential for slowing and eventually stopping global warming. The artificial marketplace advantage of unpriced carbon pollution has helped coal, oil and gas gain a stranglehold over our economic system and social structures. Charging these fuels for their climate damage is the fastest path to the clean energy future that we need to protect our cities, coasts and civilization from climate devastation.
Enacting a carbon tax in a single state can be a gateway toward the ultimate remedy: a national carbon tax. Look at Canada, where a successful carbon tax in British Columbia, that country’s third largest province, prompted Prime Minister Trudeau to commit the nation to carbon pricing starting next year.
None of the world’s five top emitters — China, United States, Russia, India, Japan — has a carbon tax covering even a province or state. Yet the grassroots movement to end the fossil fuel era has never been stronger, as evidenced by last weekend’s Marches for Science and the anticipated massive April 29 People’s Climate March.
Below are thumbnails of the eight states we determined have the best prospects for enacting carbon taxes. Our map shows another six states with carbon tax “potential” along with eleven more where only one barrier (e.g., an apparently legal impediment) stands in the way.
Residents of these states—indeed, residents of all states—must speak up, advocate, and demand that their lawmakers take action; in many states citizens can also act directly through ballot measures. Our report and toolkit explain where, why and how.
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