Why We Need a Carbon Tax

 

The Los Angeles Times recently ran the article “U.S. electricity prices may be going up for good” (reprinted in today’s Omaha World Herald), stating that “Experts warn of a growing fragility as coal-fired plants are shut down, nuclear power is reduced and consumers switch to renewable energy.”
CaptureThe article goes on to say that “the problems confronting the electrical system are the result of a wide range of forces: new federal regulations on toxic emissions, rules on greenhouse gases, state mandates for renewable power, technical problems at nuclear power plants and unpredictable price trends for natural gas.”
“New emissions rules on mercury, acid gases and other toxics by the Environmental Protection Agency are expected to result in significant losses of the nation’s coal generated power, historically the largest and cheapest source of electricity.  Already two dozen coal generating units are scheduled for decommissioning.”
“At the same time, 30 states have mandates for renewable energy that will require the use of more expensive wind and solar energy.  Since these sources depend on the weather, they require backup generation – a hidden factor that can add significantly to the overall cost to consumers.”
Here is what we should do instead:

  • First, we agree that global warming is for real. For me, the clearest and most irrefutable evidence is the rapidly diminishing extent of the artic polar icecap each summer. There is much evidence that cause of global warming is the use of fossil fuels, coal, oil and gas, which releases carbon dioxide into the atmosphere.
  • Secondly, even though the problem is worldwide, and China emits more CO2 than the U.S., nevertheless the U.S. has a responsibility to provide the leadership of which only it is capable.
  • The problem is, as the LA Times article makes very clear, our disorganized and inefficient response to the problem. Separate and haphazard responses by individual states are not nearly enough, rather we need a coherent national response.
  • A national carbon tax of perhaps $20 per ton of CO2 emitted would provide a uniform market mechanism to encourage the reduction of carbon emissions from fossil fuels or their replacement by alternate sources of energy. Coal power plants, for example, would not be forced to shut down but would have to figure out how to emit less carbon in order to remain economically viable.

This would be a big improvement over our current situation!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s