Comments on: New Larson Bill Raises the Bar for Congressional Climate Action http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/ Pricing carbon efficiently and equitably Fri, 05 Mar 2010 19:35:37 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Aaron Keating http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/comment-page-1/#comment-132965 Aaron Keating Mon, 09 Nov 2009 07:25:03 +0000 http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/#comment-132965 @3: The tax will not automatically fall on the consumer, because the tax is levied far "upstream" in the manufacturing/production process (at the point the carbon-based fuel is extracted or imported). As the cost of the tax trickles down, companies along the various supply chains will be faced with a choice: pass the tax on and risk losing business (least likely); eat the cost and lower profits (possible); or reduce costs by producing the product with less carbon-based energy (most likely). @3: The tax will not automatically fall on the consumer, because the tax is levied far “upstream” in the manufacturing/production process (at the point the carbon-based fuel is extracted or imported). As the cost of the tax trickles down, companies along the various supply chains will be faced with a choice: pass the tax on and risk losing business (least likely); eat the cost and lower profits (possible); or reduce costs by producing the product with less carbon-based energy (most likely).

]]> By: Are We Free to Pollute the Atmosphere? Climate Change, Wealth and Liberty – Part 1 « Energy Portfolio Managers Blog http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/comment-page-1/#comment-114307 Are We Free to Pollute the Atmosphere? Climate Change, Wealth and Liberty – Part 1 « Energy Portfolio Managers Blog Mon, 31 Aug 2009 00:58:52 +0000 http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/#comment-114307 [...] a cap and trade bill though I would hope our leaders will consider the less cumbersome, more robust carbon tax instead. In any case, there have been many moves afoot over a period of years to make illegal or less [...] [...] a cap and trade bill though I would hope our leaders will consider the less cumbersome, more robust carbon tax instead. In any case, there have been many moves afoot over a period of years to make illegal or less [...]

]]> By: Are We Free to Pollute the Atmosphere? Climate Change, Wealth and Liberty - Part 1 « Green Thoughts http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/comment-page-1/#comment-71155 Are We Free to Pollute the Atmosphere? Climate Change, Wealth and Liberty - Part 1 « Green Thoughts Fri, 01 May 2009 22:26:32 +0000 http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/#comment-71155 [...] a cap and trade bill though I would hope our leaders will consider the less cumbersome, more robust carbon tax instead. In any case, there have been many moves afoot over a period of years to make illegal or less [...] [...] a cap and trade bill though I would hope our leaders will consider the less cumbersome, more robust carbon tax instead. In any case, there have been many moves afoot over a period of years to make illegal or less [...]

]]> By: Louie Schwartz http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/comment-page-1/#comment-70923 Louie Schwartz Thu, 30 Apr 2009 23:21:12 +0000 http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/#comment-70923 Much, much better idea than the regulatory nightmare of cap and trade! Much, much better idea than the regulatory nightmare of cap and trade!

]]> By: Charles Moore http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/comment-page-1/#comment-65649 Charles Moore Tue, 14 Apr 2009 07:10:23 +0000 http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/#comment-65649 HR 1337 will do nothing to reduce CO2 because the bill does not require reductions. The carbon tax is simply passed on to the end user who is then rebated with 98.5% of the tax collected. Why should an industry cut back on CO2 when they can pass on the cost to the end user who is then rebated for the higher prices? The tax will bring to the Treasury $28.32 trillion (2009 - 2050)and then sending out credits-rebates of $27.854 trillion. The other $400 billion is for clean energy. Will the government being making money between the time the tax is received until paid out? A variation of float time? My figures are based on the requrement to eliminate 5.28 billion short tons over the life of the tax. I used an annual reduction of 134 million short tons (2.5%) HR 1337 will do nothing to reduce CO2 because the bill does not require reductions. The carbon tax is simply passed on to the end user who is then rebated with 98.5% of the tax collected. Why should an industry cut back on CO2 when they can pass on the cost to the end user who is then rebated for the higher prices?

The tax will bring to the Treasury $28.32 trillion (2009 – 2050)and then sending out credits-rebates of $27.854 trillion. The other $400 billion is for clean energy. Will the government being making money between the time the tax is received until paid out? A variation of float time?

My figures are based on the requrement to eliminate 5.28 billion short tons over the life of the tax. I used an annual reduction of 134 million short tons (2.5%)

]]> By: Carbon Tax Bill Introduced in US Congress : Red, Green, and Blue http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/comment-page-1/#comment-56519 Carbon Tax Bill Introduced in US Congress : Red, Green, and Blue Sun, 15 Mar 2009 09:10:49 +0000 http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/#comment-56519 [...] of the measures proposed in the new bill [...] [...] of the measures proposed in the new bill [...]

]]> By: James Handley http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/comment-page-1/#comment-55429 James Handley Mon, 09 Mar 2009 02:58:43 +0000 http://www.carbontax.org/blogarchives/2009/03/06/new-larson-bill-raises-the-bar-for-congressional-climate-action/#comment-55429 A worldwide system to reduce carbon emissions must be the goal of U.S. policy. An explicit carbon tax at a known rate can be easily harmonized using tariffs. In effect, we’d collect (and keep) our trading partners’ carbon taxes until they imposed carbon taxes of their own.  Cap-and-trade (a carbon tax hidden, variable tax rates) creates an impasse that has blocked progress under Kyoto: developing countries argue that emission <em>levels</em> should be harmonized, while wealthier nations want equivalence in the rate of <em>reduction</em>. Carbon taxes simply impose the same marginal cost on everyone, creating the same incentives for reductions.  Even if the U.S. passed cap-and-trade and even if we weathered its inevitable price volatility, there’s no reason to expect developing countries to go along. Carbon taxes with border adjustments as Rep. Larson proposes would automatically and immediately encourage the world to join us.  Isn't that what we're after? A worldwide system to reduce carbon emissions must be the goal of U.S. policy. An explicit carbon tax at a known rate can be easily harmonized using tariffs. In effect, we’d collect (and keep) our trading partners’ carbon taxes until they imposed carbon taxes of their own.  Cap-and-trade (a carbon tax hidden, variable tax rates) creates an impasse that has blocked progress under Kyoto: developing countries argue that emission levels should be harmonized, while wealthier nations want equivalence in the rate of reduction. Carbon taxes simply impose the same marginal cost on everyone, creating the same incentives for reductions.  Even if the U.S. passed cap-and-trade and even if we weathered its inevitable price volatility, there’s no reason to expect developing countries to go along. Carbon taxes with border adjustments as Rep. Larson proposes would automatically and immediately encourage the world to join us.  Isn’t that what we’re after?

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