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Mike Moffatt

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By Mike Moffatt, About.com Guide to Economics

Implementing a Carbon Tax

Saturday July 7, 2007
A couple pieces of interest on carbon taxes:

Andrew Samwick - Getting There Was More than Half the ... on how a return trip from Boston to Hawaii for a family of four emits more CO2 than his family does driving.. in a year:
One (glorious) trip to Hawaii used 75% of the fuel we use to heat our home [in a year] or 140% of the fuel we use to power our cars [in a year], with corresponding amounts of CO2 emitted.

As it pertains to energy and environmental policy, this example shows how important it is to be comprehensive in our attempts to reduce oil demand. The most straightforward way to do that is to levy a tax on all fuel products derived from petroleum. It allows abatement to occur at every possible margin--by flying, driving, or heating less or by using technologies that are more fuel efficient.
New York Times on a carbon tax proposal that is meant to fail: Counting on Failure, Energy Chairman Floats Carbon Tax:
The proposal came from Representative John D. Dingell of Michigan, chairman of the House Energy and Commerce Committee, and it runs directly counter to the view of most Democrats that any tax on energy would be a politically disastrous approach to slowing global warming.

But Mr. Dingell, in an interview to be broadcast Sunday on C-Span, suggested that his goal was to show that Americans are not willing to face the real cost of reducing carbon dioxide emissions. His message appeared to be that Democratic leaders were setting unrealistic legislative goals.
h/t John Whitehead.

It should not come to a surprise to anyone that most people are interested in reducing greenhouse gas emissions if (and only if) there is zero direct personal cost to them. I expect Mr. Dingell's goal to be achieved.

These two articles show that if a broad-based carbon tax is to be achieved, the political focus needs to be on everything but gasoline, since road transportation makes up less than 20% of all GHG emissions (in Canada, at least) and it's one tax borne directly by just about everyone.

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