A Breatkthrough in Polling on a U.S. Carbon Tax

A surprising but frustrating obstacle to carbon tax progress has been opinion polling. It took years for pollsters to even *ask* about a carbon tax rather than (or in addition to) cap-and-trade proposals. Even when that changed, little or no context was provided about possible uses of the revenues. Asking “do you support a carbon tax?” without at least hinting at possible revenue uses was akin to asking “Where should we land this punch?”

A revenue-neutral carbon tax, in which all tax revenue would be returned to the public as a rebate check ["dividend"], receives 56% support. The largest gains in support [relative to opinion on a carbon tax w/o revenue mention] come from Republicans.

A revenue-neutral carbon tax, in which all tax revenue would be returned to the public as a rebate check ["dividend"], receives 56% support. The largest gains in support [relative to opinion on a carbon tax w/o revenue mention] come from Republicans.

Happily, a poll released yesterday by researchers at the University of Michigan breaks the mold. Here’s their abstract:

Conventional wisdom holds that a carbon tax is a political non-starter. However, results from the latest version of the National Surveys on Energy and Environment (NSEE) provide evidence of substantial public support for a tax on the carbon content of different fossil fuels when specific uses of tax revenue are attached. A majority of respondents support a revenue-neutral carbon tax, and an even larger majority support a carbon tax with revenues used to fund research and development for renewable energy programs. The carbon tax coupled with renewable energy research earns majority support across all political categories, including a narrow majority of Republicans. These findings generally confirm previous NSEE results when revenue use options are linked to carbon taxation. These are among the latest findings from the Spring 2014 NSEE [National Survey on Energy and Environment] from the Center for Local, State, and Urban Policy at the University of Michigan and the Muhlenberg College Institute of Public Opinion. (Click here for source; emphases added.)

The Center’s press release on the new survey follows, printed in full.

FOR IMMEDIATE RELEASE — Public Views on a Carbon Tax Depend on the Proposed Use of Revenue, from the National Surveys on Energy and Environment (NSEE) / Press Release /July 21, 2014
[Read more...]

Last modified: July 22, 2014

On the Latest Distraction from Carbon-Taxing: “Carbon Budgets”

Over the Fourth of July holiday, Lorna Salzman forwarded me half-a-dozen emails about “global carbon budgets” that had been posted to an informal list-serve of U.S. and U.K. climate advotes. Lorna and I have been friends and colleagues since 1974; she may have been the first person to take seriously my interest in carbon taxing, circa 2003, and her encouragement had a lot to do with my starting the Carbon Tax Center several years later and more recently to my ramping up my involvement in CTC. This morning I posted the following response.

I have four points:

1. I’m flat-out befuddled by the interest from some in this group in “carbon budgets,” whether national, global or whatnot. I think they’re a dead end politically as well as a dodge scientifically.

The author, 40 miles from his lower-Manhattan home (2012 photo).

The author, 40 miles from his lower-Manhattan home (2012 photo).

Why a dead end? Because nations cannot and will not agree on who should be allowed to consume and emit how much carbon pollution. Because devilish “details” like offshoring will inevitably confound any negotiations. Ditto, population growth, which will require continual dynamic adjustments to national shares.

Why a dodge? Because every link in the emissions-to-catastrophe chain is riven with uncertainty. We don’t know with great precision what level of emissions will lead to any level of warming. We don’t know what level of warming will be catastrophic. There isn’t even agreement on what “catastrophe” is.

What we can agree on is that (i) any feasible level of emission reduction is insufficient, and (ii) deeper reductions are better than shallow ones. These facts are irreconcilable with carbon budgets.

2. A carbon tax must be at the center of any effective policy to rein in emissions. It’s folly to think that regulations (even enlightened ones) and/or clean-energy subsidies (even efficient ones) and/or public-sector mobilization such as by the Allies to win World War II can ever push back comprehensively against the massive tide of cheap fossil fuels (that is: cheap sans a price for their climate damage). [Read more...]

Last modified: July 11, 2014

Cantor’s Defeat Won’t Change Much on Climate

Washington is still abuzz with the surprise defeat of House Majority Leader Eric Cantor in this week’s Virginia Republican primaries. We asked former U.S. Under Secretary of Commerce for Economic Affairs Rob Shapiro to comment. Rob, the co-founder and chairman of Sonecon, LLC, an advisory firm that analyzes changing national and world economic and political conditions and their relationship to government policies, is a member of CTC’s board of directors. — C.K.

Rep. Eric Cantor addressing the 2013 Conservative Political Action Committee. Photo: Gage Skidmore

Rep. Eric Cantor addressing the 2013 Conservative Political Action Committee. Photo: Gage Skidmore

Following Eric Cantor’s unceremonious primary loss, a carbon-tax climate program remains hostage to the divisions cracking apart the Republican Party. Majority Whip Kevin McCarthy, who represents Bakersfield and the southernmost part of California’s San Joaquin Valley, almost certainly will succeed Cantor as House Majority Leader, with no discernible difference in the GOP’s stance on climate or anything else.

Some pundits insist that Cantor’s defeat will make establishment Republicans more sensitive to Tea Party activists. But apart from raising the debt ceiling to avoid an economically (and politically) catastrophic debt default, when have the GOP’s traditionalists stood up to their ideological fringe on any significant issue? With even once-stalwart Republican supporters of climate reform sidling towards the caucus of climate-change-deniers, serious reforms that require Congress’ approval will attract little if any support from any Republican. [Read more...]

Last modified: June 20, 2014

Next to Nothing for Climate in Obama Plan

The Environmental Protection Agency will unveil a draft proposal on Monday to cut carbon pollution from the nation’s power plants 30 percent from 2005 levels by 2030, according to people briefed on the plan. The proposed rule amounts to one of the strongest actions ever taken by the United States government to fight climate change. (emphasis added)

That’s this morning’s breaking news on President Obama’s climate action plan, from NY Times national energy-climate correspondent Coral Davenport. Yet peel back the numbers and the plan turns out to be precious little.

Relative to 2030 emissions projected from current trends, the drop in that year’s U.S. CO2 emissions sought by the President is a painfully modest 355 million tonnes (metric tons). That equates to just 7% of total actual emissions from all sources last year (5313 million tonnes).

White House’s 2030 CO2 Reduction Target: Just 7 Percent.

To be sure, the business-as-usual (no action) trajectory producing that 355 million tonne figure is mine, not the administration’s. (At the time I wrote this the White House hadn’t translated its percentage target into metric tons of CO2.) [Read more...]

Last modified: June 8, 2014

The Thin Reed Supporting the White House’s “Legacy” Climate Plan

Post hoc, ergo propter hoc

I took Latin in high school, and I loved unraveling classic phrases like After this, therefore because of this ― a common logical fallacy that attributes event B to event A because A preceded B.

Okay, so that’s not quite what Politico and the New York Times did this week when they linked the sharp drop in power plant emissions in the Northeast U.S. from 2005 to 2012 (“B”) with the regional CO2 trading system known as RGGI (“A”). But they came pretty close:

Politico: Nine Northeastern states already take part in a regional trading network that puts an economic price on their power plants’ carbon output . . . The Northeastern states saw their power plants’ carbon emissions drop more than 40 percent from 2005 to 2012, the trading network told EPA in December — without any of cap-and-trade critics’ apocalyptic expectations for such a system.

The Times: The regional program [RGGI] has proved fairly effective: Between 2005-12, according to program officials, power-plant pollution in the northeastern states it covered dropped 40 percent. [Read more...]

Last modified: June 4, 2014

Is The New York Times Missing The Decade’s Most Affirmative Climate-and-Energy Story?

Alone among the major economies, Germany is moving purposefully to phase out fossil fuels while also shuttering nuclear power. Germany’s energy makeover, or “energiewende,” appears to be thriving, as evidenced by the country’s humming economy, low unemployment, robust exports, stable or declining CO2 emissions, and rapid uptake of renewables. Yet the world’s most influential newspaper casts this ambitious program as an incipient failure, even as elsewhere it decries the climate stalemate in Washington.

Here are ten packets of information worth bearing in mind as you sift through coverage in “the paper of record” of Germany’s transformative energy agenda.

1. The German economy is the world’s fourth largest ― after the United States, China and Japan. Of the three dozen highest-population countries, Germany boasts the highest per capita GDP, save for the U.S.

2. Germany has embarked upon a concerted program to transform its energy system from fossil fuels to renewable sources ― wind power, electricity from sunlight, and biological-based fuels. This energy makeover — energiewende, in German — is not an overnight phenomenon but the accumulation of a dozen synergistic laws and policy directives instituted over several decades. The energiewende is now reaching critical mass, such that last year over 20% of German-produced electricity was generated from renewable sources, not even counting traditional hydro-electricity: wind, 8.4%; biomass, 6.7%; photovoltaics, 4.7%; municipal waste, 0.8% (an additional 3.2% was from water power) ― more than triple the comparable percentage for the U.S. (see table), and the highest share by far of any major economy. Perhaps most notably, Germany, with cloudier skies, a more northerly location, and 1/27th the land area, produces more than three times as much photovoltaic electricity as the United States. PV’s share in Germany’s electricity generation mix is 20 times as large as that in the U.S. [Read more...]

Last modified: June 19, 2014

All We Are Saying: Making An Energy Revolution Where It Matters Most

Ev’rybody’s talkin’ ’bout Revolution, Evolution, Masturbation, Flagellation, Regulation, Integrations, Mediations, United Nations, Congratulations — John Lennon, “Give Peace a Chance”

The number-one energy meme of late is “fracking changes everything,” with fracked oil and methane (gas) having turned the United States almost overnight into the world’s leading extractor of hydrocarbons and, perhaps soon, even a net exporter. And that was before Russia annexed the Crimea and muscled in on the rest of Ukraine. Now the chorus of voices calling on Congress and the White House to neutralize Vladmir Putin’s use of natural gas as a geopolitical weapon by making America the “arsenal of energy” for Eastern Europe, as a former Bush NSC official urged in the New York Times, has moved into the higher decibels.

In the past week, the Times’ editorial board and the director of the Geopolitics of Energy Project at Harvard University’s Kennedy School have been among those urging stepped-up U.S. oil and gas exports (and, hence, more fracking). And that’s just on the center-lib part of the spectrum. Kentucky Senator Rand Paul is demanding approval of the Keystone XL Pipeline, and pretty much the entire U.S. Right wants our oil-and-gas spigot on full bore as well.

To paraphrase John Lennon, everybody’s talking about gas fracking, well drilling, hydrocarbing, tar sands spilling (well, not spilling). But no one, it seems, is talking about exporting a different brand of energy to gas-dependent Eastern Europe: energy efficiency and renewables. Yet therm for therm, both would be just as effective as U.S. hydrocarbons at reducing the need for Russian gas. And, it almost goes without saying, efficiency and renewable could be in place a lot faster — and in a fashion that could allow Ukrainians, Czechs, Hungarians and Poles to be active participants in their liberation. [Read more...]

Last modified: June 4, 2014

More Nuke Amnesia — This Time At The Top

“After Fukushima, Utilities Prepare for Worst,” announced the New York Times in a story timed to this week’s third anniversary of the Japanese triple reactor meltdown. The story described measures ranging from keeping earth-moving machines at the ready (to maintain plant access after disabling earthquakes) to stocking regional depots with tractor-trailers able to deliver emergency gear to stop reactor disasters from spinning out of control.

But the story also pointed, inadvertently, to a striking lapse in institutional memory at the top echelon of the U.S. Nuclear Regulatory Commission. Here’s the quote (with emphasis added):

“Fukushima woke up the world nuclear industry, not just the U.S.,” said the chairwoman of the Nuclear Regulatory Commission, Allison M. Macfarlane, in an interview. “It woke everybody up and said: ‘Hey, you didn’t even think about these different issues happening. You never thought about an earthquake that could create a tsunami that would swamp your emergency diesel generators and leave you without power for an extended period. You . . . have to think about that now.’ “

Never? Really? The record says otherwise. [Read more...]

Last modified: June 4, 2014

CTC Tells Senate Finance Committee: Carbon Tax Beats Clean-Energy Subsidies, Hands Down

The Carbon Tax Center told the U.S. Senate Finance Committee today that an economy-wide tax on the carbon content of coal, oil and gas will cut U.S. CO2 emissions more than twice as fast as proposed clean-energy subsidies delivered as tax credits.

This finding leads a new 22-page analysis, “Design of Economic Instruments for Reducing U.S. Carbon Emissions,” that we submitted today to Senate Finance Committee Chair Max Baucus. Our analysis is in the form of “Comments” on a Committee “Discussion Draft” that proposes replacing 42 federal energy tax subsidies with either credits for “clean (low-carbon) electricity” production and “clean fuels,” but also asks for input on the merits of a tax on carbon pollution instead.

Our comments can be boiled down to this ringing conclusion: A carbon tax will do everything the clean-energy credits will do, and much more. While simplifying and rationalizing the current hodgepodge of energy subsidies is all to the good, only a carbon tax can course through our entire economy and reward energy efficiencies and conservation along with low-carbon production.

Moreover, with the right design, a carbon tax can protect lower-income families and energy-intensive U.S. industries alike, at no cost to the Treasury. In contrast, even the proposed streamlined clean-energy subsidies could cost taxpayers more than $30 billion a year.

Estimated CO2 reductions from a carbon tax are 2.4 times as great as those from clean-energy subsidies.









We performed our analysis using the Carbon Tax Center’s carbon tax spreadsheet model, which may be downloaded via this link. With the model, we estimated that the proposed subsidies would reduce U.S. carbon dioxide emissions by roughly 400 million metric tons a year, whereas an economy-wide carbon tax set at the same level as the subsidies would eliminate 960 million metric tons of emissions. (For comparison purposes, U.S. carbon dioxide emissions from burning fossil fuels totaled 5,221 million metric tons in 2012, the last year for which data are available.)

The Senate Finance Committee’s Dec. 18 statement, Baucus Unveils Proposal for Energy Tax Reform,” is available by clicking here. That two-page letter contains a link to the Committee staff’s 8-page discussion draft, which solicited comments on both the proposed subsidies realignment and on alternatives that would tax carbon emissions directly.

Our comments were submitted on behalf of the Citizens Climate Lobby and the Citizens Climate Education Corp. CCL/CCEC are the most visible and vociferous grassroots organizations advocating for a revenue-neutral U.S. carbon tax, and we are proud to stand with them. CCL chapters and members across the U.S. submitted their own comments backing a carbon tax as well.

Our hope is that the Senate Finance Committee’s discussion draft signals a new interest in carbon taxing among the tax-writing committees on Capitol Hill . . . and that CTC’s comments along with those from others will persuade incoming Committee Chair Sen. Ron Wyden (D-OR) to convene informational and/or legislative hearings this year on the optimal choice of economic instruments to reduce U.S. carbon emissions. (Longtime Committee Chair Baucus is leaving the Senate to serve as U.S. Ambassador to China.)

In the interim, we believe that our comments stand as the first broad quantification of the relative efficacy of a carbon tax vs. energy subsidies (even rationalized ones) to reduce emissions. As the figures in the table indicate, a carbon tax wins hands down.

CTC’s comments were researched and written by CTC director Charles Komanoff and CTC senior policy analyst James Handley. Support for their preparation and submittal was provided by the Alex C. Walker Educational and Charitable Foundation. We are grateful for their support.

Last modified: January 31, 2014

Help Accelerate the Climate Solution: Donate to the Carbon Tax Center

Two weeks ago, I caught a tantalizing glimpse of a possible carbon tax in China.

I was part of an international delegation brought to Hangzhou to meet with 200 officials from 11 provinces, 30 cities, and at least a dozen universities at China’s first-ever “International Forum on Economic Policies for Traffic Congestion and Tailpipe Emissions.”

CTC director Charles Komanoff presenting on congestion pricing in Hangzhou, Dec. 12.

Traffic gridlock and tailpipe emissions are mounting in China’s megacities, and officials are looking to economic policy instruments to control both. It seems only a matter of time — and perhaps not much time — before Chinese cities begin to charge vehicles a fee to be driven into their central areas during peak periods.

And if congestion pricing is truly on the table for China, might a carbon tax, which is cut from the same cloth of cost internalization and price incentives, be close behind?

My experience in China, which you can read about here, reinforces my conviction that there will be a U.S. carbon tax.

Maybe, if we get lucky with the new Congress, as part of tax reform in 2015. Or perhaps not till after 2016 or even 2020, given our low-functioning political system.

The push may need to come from the states and spread to D.C., as it has for marriage equality. Or a carbon tax may be forced upon Congress as China and other countries enact carbon taxes and impose carbon tariffs on our exports.

But a national carbon tax will come. The moment will arrive when, to paraphrase Jim Hansen, the laws of physics and chemistry, not to mention economics, overwhelm even denialism and gridlock.

The Carbon Tax Center works to accelerate that moment. And to ensure that the carbon tax that eventually passes Washington isn’t piecemeal and opaque, but is rapidly rising, transparent, and just.

Just under the radar — ­ in think tanks, meeting halls and, yes, Congressional offices ­ — carbon pricing is inching back into conversations about climate, energy policy and fiscal and tax reform. And CTC is key to these discussions.

We run numbers for Capitol Hill staff, journalists and grassroots advocates. We cross-pollinate the carbon tax grapevine to keep others in the field up-to-date and connected. We help fellow climate proponents see that neither subsidies for clean-tech nor EPA regulations can rid our economy of fossil fuels fast enough . . . and to grasp that a robust and transparent carbon pollution tax is needed to level the entire playing field, not just select pieces.

The Carbon Tax Center does all this on a budget that barely qualifies as shoestring. With your help now, we’ll do it even more vocally, in more arenas, and more effectively in 2014.

Your contribution, of any size, will help us grow support for a U.S. carbon tax in Washington and the states. Please click here, now, to make your tax-deductible donation.

Thank you for your past and future support. Have a wonderful New Year.

  — Charles Komanoff, founder-director, Carbon Tax Center

Photo: Silvia Moroni, Mobility, Environment and Land Agency, Milan.

Last modified: December 26, 2013