The following statement was published today in The Guardian under the headline, Our Manifesto to Save Europe from Itself, under the signature of Thomas Piketty, the French economist who rose to global renown with the 2013 publication of his scholarly work, Capital in the Twenty-First Century.

The statement, co-signed by over one hundred European economists, outlines a plan to revitalize the European Union with with a “new, sovereign European assembly capable of producing a set of fundamental public goods and services in the framework of a lasting and solidarity-based economy,” paid for by a suite of “four major [new] European taxes” including a carbon tax set at a minimum of 30 euros per metric ton (equivalent to around $31 per U.S. short ton).

While the proposal presumably was provoked by the ongoing “Gilets Jaunes” protests rocking France, its ambitions are far greater than simply responding to the current unrest. We are of course encouraged that the proposed program includes a carbon tax.

We are grateful to the editors of The Guardian for publishing the manifesto in full. The original version on The Guardian’s site includes a complete list of signatories. We have changed European syntax in some places to American style and have bolded passages deserving emphasis.

  — Carbon Tax Center

Since the election of anti-European governments across the EU, and with Brexit looming, it is no longer possible to continue as before. We cannot simply wait for the next departures, or further dismantling without making fundamental changes to present-day Europe.

Our continent is caught between political movements whose program is confined to hunting down foreigners and refugees, on one hand, and on the other those who claim to be European but in reality continue to consider that hardcore liberalism and the spread of competition are enough to define a political project. They don’t recognize that this lack of social ambition is what leads to feelings of abandonment.

There are some movements attempting to end this fatal dialogue and address the structural problems that have arisen after a decade of economic crisis. There is no lack of these specifically European-critical situations: structural under-investment in the public sector, particularly in training and research, a rise in social inequality, acceleration of global warming and a crisis in the reception of migrants and refugees. But these movements often have difficulty in formulating a coherent alternative project, and in describing precisely how they would like to organize the Europe of the future.

This is why we, European citizens from different backgrounds and countries, are today launching this appeal for the in-depth transformation of the European institutions and policies.

Our manifesto contains concrete proposals, in particular a project for a democratization treaty and a budget project – and we have made it all publicly available. Our ideas may not be perfect, but they do have the merit of existing. The public can access them and improve them.

They are based on a simple conviction: Europe must build a new model to ensure the fair and lasting social development of its citizens. The only way to persuade them is to abandon vague and theoretical promises.

If Europe wants to restore solidarity with its citizens it can only do so by providing concrete evidence that it is capable of establishing cooperation and by making those who have gained from globalization contribute to the financing of public-sector good. That will mean making large firms contribute more than small and medium businesses, and the richest taxpayers paying more than poorer taxpayers. This is not the case today.

Our proposals are based on the creation of a budget for democratization that would be debated and voted on by a new, sovereign European assembly. This will at last enable Europe to equip itself with a public institution capable of dealing with crises in Europe immediately and of producing a set of fundamental public goods and services in the framework of a lasting and solidarity-based economy. The promise made at the treaty of Rome of “harmonization of living and working conditions” will finally become meaningful.

This budget, if the European assembly so desires, will be financed by four major European taxes, the tangible markers of this European solidarity. These will apply to the profits of major firms, the top incomes (over €200,000 a year), the highest wealth owners (over €1m ) and carbon emissions (with a minimum price of €30 a tonne).

If it is fixed at 4% of GDP, as we propose, this budget could finance research, training and the European universities, an ambitious investment program to transform our model of economic growth, the financing of the reception and integration of migrants, and the support of those involved in carrying out this transformation. It could also give some budgetary leeway to member states to reduce the regressive taxation that weighs on salaries or consumption.

The issue here is not one of creating a transfer of payments across Europe – taking money from the “virtuous” countries to give it to those that are less so. The project limits the gap between expenditure deducted and income paid by a country to a threshold of 0.1% of its GDP – this could only be increased should there be consensus to do so.

This threshold can be raised in case there is a consensus to do so, but the issue is primarily of reducing the inequality within countries, not between them, and of investing in the future of all Europeans. But those calculations would exclude spending that benefits all countries equally, such as action on climate change. Because it will finance European public goods benefiting all countries, the budget for democratization will de facto also foster convergence between countries.

Because we must act quickly but we must also get Europe out of the present technocratic impasse, we propose the creation of a European assembly. This will enable these new European taxes to be debated and voted as also the budget for democratization. This European assembly can be created without changing existing European treaties.

The assembly would, of course, have to communicate with the present decision-making institutions (in particular the Eurogroup in which the ministers for finance in the eurozone meet informally every month). But, in cases of disagreement, the assembly would have the final word. If not, its capacity to be a locus for a new transnational political space where parties, social movements and NGOs would finally be able to express themselves would be compromised.

Equally its actual effectiveness, since the issue is one of finally extricating Europe from the eternal inertia of intergovernmental negotiations, would be at stake. We should bear in mind that the rule of fiscal unanimity in force in the European Union has for years blocked the adoption of any European tax and sustains the eternal evasion into fiscal dumping by the rich and most mobile, a practice which continues to this day despite all the speeches. This will go on if other decision-making rules are not set up.

Given that a newly created European assembly would have the ability to adopt taxes and to affect the very core of the democratic, fiscal and social compacts of states, national and European parliamentarians must be central. This is why we propose, in the democratization treaty available online, that 80% of the members of the European assembly should be from national parliaments, with 20% from the present European parliament.

This choice merits further discussion. In particular, our project could also function with a lower proportion of national parliamentarians (for instance, 50%). But in our opinion an excessive reduction of this proportion might detract from the legitimacy of the European assembly in involving all European citizens in the direction of a new social and fiscal pact, and conflicts of democratic legitimacy between national and European elections could rapidly undermine the project.

Thus national elections will de facto be transformed into European elections. National elected members will no longer be able to simply shift responsibility on to Brussels and will have no other option than to explain to voters the projects and budgets they intend to defend in the European assembly. By bringing together the national and European parliamentarians in one single assembly, habits of co-governance will be created which at the moment only exist between heads of state and ministers of finance.

We now have to act quickly. While it would be preferable for all EU countries to join the project without delay – especially the four largest countries in the eurozone (which represent more than 70% of the GNP and population) – it is designed so that it can be adopted and implemented by any set of countries that wish to do so. It enables those who wish to make immediate progress by adopting this project to do so right now.

We must all assume our responsibilities to participate in a detailed and constructive discussion on the future of Europe, lest our continent is left to sink further into damaging division.

Thomas Piketty is professor of economics at the Paris School of Economics.

Other signatories: Sébastien Adalid, Michel Aglietta, Nacho Alvarez, Julie Bailleux, Marija Bartl, Marie-Layre Basilien-Gainche, Myriam Benlolo Carabot, Loïc Blondiaux, Karolina Borońska, Andreas Botsch, Patrick Boucheron, Emmanuel Bouju, Begnina Boza-Kiss, Hauke Brunkhorst, Bojan Bugarič, Klaus Busch, Julia Cagé, Lucas Chancel, Christophe Charle, Christian Chavagneux, Amandine Crespy, Fabio De Masi, Anne-Laure Delatte, Donatella Della Porta, Yves Deloye, Paul Dermine, Brigitte Dormont, Guillaume Duval, Susanne Elsen, Emanuele Ferragina, Bastien François, Philippe Frémeaux, Diane Fromage, Miguel Gotor, Julien Grenet, Ulrike Guérot, Gabor Halmai, Pierre-Cyrille Hautcoeur, Stéphanie Hennette, Rudolf Hickel, Mario Hübler, Élise Huillery, Simon Ilse, Liora Israel, Michael Jacobs, Yannick Jadot, Luis Jimena Quesada, Christian Joerges, Kädtler Jürgen, Iphigénie Kamtsidou, Jakob Kapeller, Pascale Laborier, Justine Lacroix, Sylvie Lambert, Camille Landais, Sandra Laugier, Rémi Lefebvre, Steffen Lehndorff, Nicolas Leron, Ulrike Liebert, Pascal Lokiec, Philippe Maddalon, Mikael Madsen, Paul Magnette, Maria Malatesta, Francesco Martucci, Frédérique Matonti, Dominique Meda, Robert Menasse, Sophie Meunier, Zoltan Miklosi, Eric Millard, Robert Misik, Éric Monnet, Alberto Montero, Daniel Mouchard, Ulrich Mückenberger, Jan-Wener Muller, Olivier Nay, Sighard Neckel, Fernanda Nicola, Silke Ötsch, Walter Ötsch, Bruno Palier, Mazarine Pingeot, Martin Pigeon, Sébastien Platon, Thomas Porcher, Christophe Prochasson, Thomas Ribemont, Julie Ringelheim, Daniel Roche, Pierre Rosanvallon, Ruth Rubio Marin, Guillaume Sacriste, Emmanuel Saez, Gisele Sapiro, Francesco Saraceno, Thomas Sauer, Patrick Savidan, Frédéric Sawicki, Axel Schäffer, Alan Scott, Thomas Sterner,Julien Talpin, Stéphane Troussel, Laurence Tubiana, Boris Vallaud, Fernando Vasquez, Antoine Vauchez, Brigitte Young, and Gabriel Zucman

The Democrats flipped the House all right, turning a 41-vote Republican margin into a 34-vote Democratic edge. Intra-party debate is already under way over how to make productive use of the next two years while the rest of the government remains in Republican hands. In the climate space, there’s a hot (though hardly new) progressive idea: a Green New Deal.

Last week, climate activists led by the Sunrise Movement took the idea to (literally) the halls of Congress, demonstrating outside the office of presumptive speaker Nancy Pelosi. They were joined by the newly elected and already iconic progressive star Alexandria Ocasio-Cortez, who has drafted an ambitious resolution calling for a Select House Committee on a Green New Deal.

The committee would be charged with developing:

a detailed national, industrial, economic mobilization plan . . . for the transition of the United States economy to become carbon neutral and to significantly draw down and capture greenhouse gases from the atmosphere and oceans and to promote economic and environmental justice and equality.

Pelosi, for her part, immediately announced her intention to reconstitute the Select Committee on Energy Independence and Global Warming, which she had created as speaker in 2007-2011. For the full context, we recommend two posts by Dave Roberts of Vox that bracketed the Capitol Hill protest. The day before, he discussed the Democrats’ prospects in a divided Congress. The day after, he reported on how the protest played out, including Ocasio-Cortez’s role.

The Green New Deal is still little more than a concept. The phrase has been a favorite of New York Times columnist Tom Friedman at least since 2007 and was part of presidential candidate Barack Obama’s platform in 2008. (Grist published a nice history last summer.) Needless to say, Friedman’s Green New Deal and Ocasio-Cortez’s Green New Deal aren’t close to the same thing. The devil will be in the many details to be worked out in that select committee.

Ocasio-Cortez’s resolution calls for:

• 100% renewable power generation
• a national energy-efficient smart grid
• upgrading the energy efficiency of all buildings
• decarbonizing transportation, manufacturing, agriculture and other sectors
• massive investment in capture of greenhouse gases
• making “green” technology a major U.S. export

Her proposal also includes a number of broader but arguably connected goals, including retraining, a job guarantee, a living wage, environmental justice, and greater economic equality.

There’s also a concurrent debate over strategy. The Democrats’ initial aim on climate has been to write the Clean Power Plan and rising CAFE standards — both under threat by the Trump Administration — into statutory form and force the Republican Senate (and/or Trump himself) to go on record opposing those popular measures. Sunrise and other progressive groups are demanding much more: development of a fleshed-out program to be enacted as soon as Democrats re-establish control of Congress and the White House.

What will a Green New Deal mean for a carbon tax? For one thing, any program to move U.S. society and economy quickly off fossil fuels will cost a lot of money; a carbon tax — which has climate benefits irrespective of how the revenue is used — is a logical source of funding. In particular, a robust carbon tax makes everything we want to do on climate easier — reducing the need for renewable subsidies, shortening the payback period for clean energy investments, etc.

Furthermore, as the most recent IPCC report explained, the planet’s back is now against the wall, and we need to do everything we can as fast as we can to limit the most damaging consequences of climate change. Clean-energy subsidies and efficiency standards by themselves won’t be sufficient. Leaving carbon pricing on the table would be a dereliction of duty.

Finally, U.S. action, necessary as it is, won’t be enough. A carbon tax, combined with border adjustments against countries without similar policies, can help move the entire globe in the right direction.

An important caution is that the right question needs to be asked when deciding how high a carbon tax should be. The question is not, How much money do we need?, but How much emissions reduction do we want to achieve through pricing? And for the sake of equity, a good portion of carbon tax revenues should be devoted to dividends or tax offsets that buffer households, and especially lower-income ones, against the impact of higher energy prices.

The new push for a Green New Deal represents a serious movement within which a carbon tax can and should play a key role. Nothing will happen as long as Republicans sit atop most of the federal government, of course. But the Green New Deal offers the kind of ambitious platform that carbon tax advocates have been calling for all along.

This post from Oct. 24 was amended on Oct. 25 to add the map and reference to David Roberts’ Vox post on the Trudeau carbon pricing plan.

The government of Prime Minister Justin Trudeau yesterday announced a national carbon pricing plan that it hopes will yield annual CO2 emissions cuts of 50 to 60 million metric tons by 2022, around a 10 percent drop from Canada’s current emissions.

The plan employs a national carbon price benchmark of $20 (Canadian) per metric ton beginning next year, rising by $10/tonne per year to reach $50 in 2022, according to tables published by the Canadian Department of Finance. Factoring in the 9.3 percent lesser weight of a short ton vis-a-vis a metric ton and the 23 percent lesser value of a Canadian dollar vs. a U.S. dollar, the price trajectory in U.S. terms is $14 per (short) ton, rising by $7/ton per year to reach $35 in 2022.

Perhaps the most innovative element of the plan is the “return” of virtually all of the carbon revenues as dividends to households rather than using the monies to pay for tax swaps or green investments. The plan thus embodies the fee-and-dividend idea long espoused by Citizens Climate Lobby and more recently re-branded as carbon dividends by the Climate Leadership Council, the group fronted by retired Republican officials James A. Baker III and George Shultz.

Ottawa’s dividends proposal includes these provisions:

• The dividends, called “climate action incentive payments,” will be provided annually to federal-taxpaying households by the Canada Revenue Agency.
• Residents of small communities and rural areas get a 10 per cent revenue supplement “in recognition of their specific needs” — presumably, higher fuel needs for heating and driving.
• The dividend amounts will vary by province, presumably with individuals and families of high-carbon provinces receiving larger payments.

“Canada needs to cut its greenhouse gas emissions, and the best way to do that is to put a price on carbon pollution,” declared the country’s Department of Finance in a statement yesterday. “Experts, including Nobel Prize winning economists, have made it clear that pollution pricing is the most effective and efficient way to reduce the greenhouse gas emissions that are giving rise to climate change,” said the statement, which added:

Carbon pollution is not free. Canadians see its effects when extreme weather threatens their safety, their health, their communities, and their livelihoods. They pay for it in the form of structural repairs and higher insurance premiums, food prices, health care costs and emergency services. Climate change is expected to cost Canada’s economy $5 billion annually by 2020.

Several Canadian provinces have already implemented carbon pollution pricing, via a tax (British Columbia) or permit systems via cap-and-trade (Quebec, Ontario, most of the Maritime provinces). The fuel levies published this week by the Trudeau government will now undergo a consultation process expected to last at least several months.

Yesterday’s Finance Dept release includes these three “quick facts”:

• Carbon pollution pricing is the most effective and efficient way to reduce the greenhouse gas emissions associated with climate change.
• Carbon pollution pricing delivers economic benefits because it encourages Canadians and businesses to innovate, and to invest in clean technologies and long-term growth opportunities that will position Canada for success in a cleaner and greener global economy.
• Once in place, carbon pollution pricing could cut Canada’s greenhouse gas emissions by 50 to 60 million tonnes [metric tons] in 2022.

Total Canadian CO2 emissions from burning fossil fuels were estimated at 549 million tonnes in 2015, according to an international listing compiled by the Union of Concerned Scientists. Assuming the targeted reductions in the last bullet point above are all CO2, the 50-60 million tonne reduction would amount to 10 percent of those emissions. (U.S. 2015 emissions were estimated at 4,998 million tonnes in the UCS listing, though our figure for that year was 2 percent greater.)

By 2022, annual carbon revenues under the plan could be as much as $27 billion (Canadian) or $21 billion (U.S.), although exemptions for trade-exposed energy-intensive sectors and for aviation fuel used in indigenous communities might reduce those figures.

The plan is a daring gambit for PM Trudeau, as David Roberts of Vox explained in a post today, Canadian Prime Minister Justin Trudeau is betting his reelection on a carbon tax.
The Canadian government’s embrace of household dividends could also provide a shot in the arm for dividends advocates in the U.S., whose credibility has faltered as Congressional Republicans have disdained the supposedly GOP-friendly dividends approach. This morning, Thomas Friedman, a leading champion of bipartisan climate action among U.S. pundits, called on readers of his New York Times column to “vote for a Democrat, canvass for a Democrat, raise money for a Democrat, drive someone else to a voting station to vote for a Democrat” in the midterm elections.

Echoing Friedman’s call, a constituent of Rep. Carlos Curbelo, the Republican Congressmember who broke ranks with his party in July by introducing a carbon-fee-and-dividend bill, told a Times reporter that Curbelo’s climate concern wasn’t enough to win his vote on Nov. 6: “He is unable to overcome the extreme wing of his party. We need to change the team.”

For more information on Canada’s carbon-pricing plan:

• Document from which we drew our screenshot, “How we’re putting a price on carbon pollution.”
• Press release from office of Prime Minister Trudeau (with links to details).
• Carbon price fuel-charge rates.
• Materials on carbon pricing from Canada’s Ecofiscal Commission.

We mentioned here in mid-summer that climate journalists were disdaining the Climate Solutions Caucus as “greenwashing for GOP denialists.” Now a prominent energy-and-climate newsletter is out with a roundup of Republican caucus members’ re-election efforts that adds fuel to that charge.

The new report in ClimateWire, by Washington-based E&E News reporter Mark K. Matthews, quotes campaign materials by GOP Reps. Mia Love of Utah, Steve Knight of California and Peter Roskam of Illinois that cite their caucus membership as evidence of climate and/or environmental concern.

This is from Rep. Love’s latest mailer to constituents:

Mia Love knows that we need action, not words, on improving our environment. That’s why she regularly engages with her fellow members of the Climate Solutions Caucus to craft and advance policies that promote environmental stewardship.

Similarly, the ClearPath Action Fund, which aims to “elect Republican clean energy champions,” is insisting in Facebook ads that Rep. Knight’s caucus membership demonstrates that he “puts California before party politics.” An aide to Rep. Roskam, meanwhile, recently pointed to his joining the caucus as evidence that he “has always been a friend to the environment,” reports ClimateWire’s Matthews.

Yet neither Love nor Knight nor Roskam is known to have written, sponsored or even endorsed any substantive “green” legislation during their Congressional tenure. “Engaging” with caucus members, it’s fair to say, is basically a smokescreen to cover Republicans’ stonewalling on federal climate action.

More than fear of a Democratic “blue wave” is making GOP Congressmembers flaunt their caucus badges. Environment again matters these days, a turnaround that the Pew Research Center first reported back in January:

Economic issues — improving the job situation, strengthening the economy and reducing the budget deficit — are viewed as less important policy priorities than they were just a few years ago. Other issues, which had been less prominent public priorities in the past, have grown in importance. The share of Americans saying that protecting the environment should be a top policy priority has increased 18 percentage points since 2010 (from 44% to 62%), and seven points in the past year alone. (emphasis added)

Or, as veteran political journalist Stuart Rothenberg pointed out this week in Roll Call, “It’s NOT the Economy, Stupid. With growth up [and] unemployment down, voters are focusing on other issues,” environment among them. Needless to say, massive climate-charged flooding in the Carolinas and forest conflagrations across California and the West, coupled with the Trump administration’s “climate arson” in gratuitously torching methane-leak rules and other no-brainer regulations, are likely to keep climate and environment on the front burner in the run-up to the November midterms.

How fares the Republican half of the Climate Solutions Caucus in all this? Not well. Our donut chart (above) displays all 43 GOP caucus seats according to their re-election chances, as rated by the widely admired Cook Political Report. Seven members aren’t running for re-election and another three are deemed likely to lose on Nov. 6 or “leaning” that way. Another ten races, including those by Knight and Roskam (mentioned earlier) are considered tossups, making a total of 20 in jeopardy — not counting six rated as leaning toward a win (that group includes Mia Love along with Rep. Carlos Curbelo of Florida) and six likely to win. We singled out Curbelo in July for “blazing a path” with the first Republican carbon-tax bill in a decade.

Only eleven of the 43 races for the GOP Climate Solutions Caucus aren’t “competitive” for Democrats, according to the Cook report, which is why Matthews of ClimateWire headlined his post, “Climate caucus’s GOP ranks could plummet.”

That GOP caucus members are especially vulnerable to a November blue wave isn’t surprising, since it’s their district’s blue or purple tinge that led many of them to declare climate concern in the first place. Regardless, a wave that swamps the caucus’s Republican side could open the floodgates to congressional hearings and, eventually, action, on genuine climate solutions.

Oct. 2 addendum: The Democratic challenger to Rep. Peter Roskam (R-IL), mentioned at the top, is Sean Casten, whom the NY Times today described as “a scientist and clean-energy businessman” in its contrarian article, Floods. Wildfires. Yet Few Candidates Are Running on Climate Change. 

The rifts over carbon pricing that have engulfed the climate movement in recent years and helped sink the 2016 Washington state carbon tax referendum softened noticeably at a public forum in New York’s Westchester County on Monday evening. Lines of convergence outweighed points of contention, perhaps signaling that proponents of transparent and robust carbon pricing can surmount our ideological differences and move forward together.

The forum, Carbon Tax: Solution to the Climate Crisis, was organized by local climate activist Andrew Ratzkin and held at Pace Law School, whose affiliate, the Pace Energy and Climate Center, has for decades been a bulwark of policy and legal analysis for energy efficiency, renewable energy and environmental taxation. While the four panelists — I was one — hale from different disciplines and generations, we were conversant with climate science, economics and organizing and respectful of each other’s endeavors.

The younger panelists, Dan Sherrell and Shiva Prakash, outlined the ambitious New York State carbon tax proposal developed by NY Renews that has attracted wide support — with sign-on from 143 organizations — through its pledges to apply the carbon revenues to protect low-income families, invest in sustainable energy technology, help workers transit out of fossil-fuel jobs, and remediate “front-line” communities disproportionately damaged by fossil fuel processing and combustion.

While there’s room to question whether spreading the revenues so broadly can achieve all four objectives, NY Renews rests its optimistic projections — which include, by 2030, a halving of New York CO2 emissions and creation of 150,000 net new jobs — on a detailed study by the U-Mass Political Economy Research Institute. The group also formulated its carbon-tax proposal through extensive consultation with advocates from labor, environment, low-income and environmental-justice communities — a far more holistic process than Carbon Washington followed in fashioning its doomed I-732 referendum, and one that should augur well for the eventual legislative effort.

You may have noticed that my description led with the proposed use of the revenues, not the level of the tax. One reason is that the carbon tax amount in any state proposal tends to be constrained by “leakage” concerns over cross-border business flight as well as the political difficulty of getting too far out front of neighboring states; for the record, the NY Renews carbon tax would start at $35 per ton of CO2 and increase indefinitely at 5 percent a year.

The other, weightier reason for emphasizing revenue use is that it has become the boulder on which carbon tax advocacy has splintered. Revenue-investment proponents like NY Renews, who tend toward the political left, want the carbon revenues applied to the “Green New Deal” elements outlined above (and shown in the graphic below) which collectively constitute what they call “the just transition” from coal, oil and gas to renewables.

An opposing revenue-neutral camp tends to be less overtly political, as exemplified by Citizens Climate Lobby, whose 60,000 national members insist on equal return of carbon “dividends” to households as a way of skirting left vs. right fights and building constituencies of support for raising the carbon tax or fee level (since the dividend checks rise at the same rate). The revenue-neutral camp also places greater trust in the ability of the carbon-price signal to motivate pervasive changes in investment, behavior, technology and societal values that will effectuate the flight from fossil fuels, whereas revenue-investors tend to disdain “market forces” and to eye carbon taxes primarily as a revenue source to pay for socially driven and governed wind, solar, weatherization, public transit and electrification.

While these categories are a gross simplification, a synthesis of sorts appeared to come into view on Pace at Monday, along these lines:

• Taxing carbon emissions is so essential AND politically difficult that establishing a U.S. beachhead is more important than demanding a perfect version.
• The impossibility of enacting a carbon tax at the federal level till at least 2021 leaves states as the locus for that beachhead for several years or more.
• Several factors render revenue-neutrality less imperative in state than federal carbon-taxing:
  • The lower tax rates in most state proposals imply lesser need to dedicate revenues to dividends or other income-support;
  • Greater political and cultural cohesion within states allows tailoring carbon-revenue investment to be more politically palatable;
  • Greater role of coalition politics makes some revenue investment necessary to pass state legislation.

While it’s possible or even likely that initial state carbon taxes that are heavy on revenue investment might repel red-state members of Congress as “Christmas-tree” packages, that specter seems less salient than the need to get some carbon-tax boots on the ground — not to mention the need to overturn the G.O.P. majorities and shrink climate-denialist representation in Congress, period.

These bullet points sharpen somewhat the long-established position of the Carbon Tax Center to support virtually any carbon tax formulation that doesn’t demonstrably worsen economic inequality. Still problematic for CTC, however, is the insistence of many revenue-investment adherents that their Just Transition include substantial allocations — as much as one-third, in the NY Renews proposal — to offset and remediate disproportionate fossil-fuel impacts on front-line communities.

Our position, which co-panelist Michael Gerrard also voiced, is that the fastest and surest way to reduce and eliminate those environmental injustices is to enact and ramp up the highest carbon tax that’s politically imaginable. Both Michael and CTC premise this on our conviction that the price signal itself is the salient policy tool within the carbon tax, and that a robust carbon charge will create powerful and ultimately irresistible incentives to reduce and eliminate fossil fuel use — and, thus, emissions and other impacts — across-the-board, not just in selected (wealthy and white) communities. It follows, then, that all communities, including but not limited to environmental-justice communities, will be better protected from both climate damage and “traditional” environmental insults if carbon tax proposals are free from what some lawmakers may consider special dispensations and can be legislated as high as possible.

We at CTC took a first stab at articulating this position in a 2016 blog post. We hope to elaborate on it soon and to elicit responses from NY Renews and other climate activists who carry the environmental-justice carbon-tax banner.

America is anti-urban. This is not a feeling or a passing fancy but a fact. While the House adheres to the principle of one person-one vote, more or less, the Senate is a horror show of anti-democracy. Thanks to the principle of equal state representation, it gives the three percent of the population that live in the ten smallest states the same number of senators as the 54 percent that live in the ten largest. The Electoral College triples the clout of Wyoming, Vermont, and other under-populated states in presidential elections while Article V — the constitutional clause that says that two-thirds of each house plus three-fourths of the states must approve any amendment — allows thirteen states representing as little as 4.4 percent of the population to wield an absolute constitutional veto. In case you were wondering, this, in a nutshell, is why an eighteenth-century relic like the Second Amendment will never, ever go away.

But because the least populous states are the least urban for the most part, the result is a profound structural bias in favor of acres over people. And since American politics are also fragmented and de-ideologized, the effect is not only to short-change urban interests but to confuse and obscure them so that Americans no longer recognize what those interests really are.

Here are two examples of how US-style structural anti-urbanism plays out. One involves pot. The other involves carbon.

Although you wouldn’t know it, thanks to a near-century of Washington scare tactics, smokeable marijuana is one of the world’s most benign inebriants. As Lynn Zimmer, a sociologist at Queens College, and John P. Morgan, a professor of pharmacology at the City University of New York, showed twenty years ago in “Marijuana Myths, Marijuana Facts,” large-scale studies of users have “generally supported the idea that marijuana was a relatively safe drug — not totally free from potential harm, but unlikely to create serious harm for most individual users or society.” Contrary to anti-drug alarmists, pot does not harm reproduction or fetal development, it does not damage brain cells, and it does not cause “significant reduction in any pulmonary functions,” most likely because regular users consume at most three to five joints per day versus the ten to forty cigarettes consumed by a typical smoker. Marijuana also does not inexorably lead to an “amotivational syndrome,” which is to say stone-style listlessness, according to Zimmer and Morgan, and it is not a “gateway” to harder drugs either.

So legalization is an attractive alternative for all those seeking to make America a healthier, happier, and — dare we say it? — mellower place. But it is especially attractive from an urban point of view simply because depressed inner cities are where many of the drug war’s social costs are concentrated. Black users are nearly four times as likely to be arrested as whites according to the ACLU, while poor people in general are disproportionately penalized. In New York City’s twenty wealthiest neighborhoods (average family income: $75,000 per year), the arrest rate in 2014 for marijuana possession was just 39 per 100,000; in its twenty poorest (average family income: $34,000), the arrest rate was 498, nearly thirteen times greater.

Thus, support for marijuana legalization should be strongest among minorities and the poor and the politicians they elect. And it would be if America were more democratic. But given its present anti-urban structure — which, by the way, is worsening as the interior continues to lose ground to burgeoning coastal communities — strange anomalies appear.

One is in New Jersey, where Democratic Governor Phil Murphy was elected last fall on a pro-legalization platform. But since Murphy took office in January, replacing the disgraced Chris Christie, marijuana reform has run into a buzz saw of opposition. The resistance comes not only from skittish suburbanites, but, strikingly, from the state legislature’s black caucus. At a recent public hearing in hard-pressed Jersey City, opposition ran so high that a supporter described it as a case of “reefer madness.”

“It will devastate the African-American community,” a Newark religious leader proclaimed. “It will devastate any chance of our children having a future.” Added an ex-Newark public defender named David Evans: “Is legalization going to improve the spiritual health of the people of New Jersey? I don’t think so.”

But it would improve spiritual health for the simple reason that nothing raises morale more than the knowledge that one will not spend years in prison for the crime of puffing on a harmless weed. Critics do have half a point in the sense that no social policy is cost-free and that inner cities are justified in assuming that they will once again be saddled with a disproportionate burden. As State Senator Ronald Rice, an ex-Marine and ex-Newark police detective who chairs the NJ legislative black caucus, told The New York Times: “[I]t’s being sold on the backs of black folk and brown people. It’s clear there is big, big money pushing special interests to sell this to our communities.”

All too true. But what critics evidently don’t realize — what an inequitable power structure prevents them from realizing — is that, all things considered, inner-city communities will still be better off if non-punitive policies are adopted and the individual is left alone to decide what substances to ingest and what not to. And that’s true even if marijuana reform is revenue-neutral, that is, if it simply legalizes sale and use without dedicating cannabis tax revenues to communities hollowed out by the drug war and mass incarceration. Even a half-good reform is better than nothing.

And now onto the second issue: carbon. The arguments in favor of carbon taxes are every bit as overwhelming as those in favor of marijuana legalization. They discourage carbon-dioxide emissions that are the prime cause of global warming, they encourage a switch from fossil fuels to sustainable energy sources, and, by de-incentivizing driving, they help thin out the chronic traffic congestion that paralyzes the country’s major metropolitan areas.

But what’s often overlooked is the effect not just on traffic or climate, but on America’s much-abused urban centers. To the degree carbon taxing discourages driving, it encourages a shift to mass transit, which, by its very nature, tends to feed into densely-populated cities. Moreover, mass transit doesn’t just funnel people into such nodes — it funnels economic activity and jobs. To the degree that taxing carbon encourages energy to be used more efficiently, it encourages a switch from cars and trucks to biking, walking, and rail, all of which are more compatible with high urban densities. By altering the incentives, taxing carbon emissions applies the brake to powerful centrifugal forces that have spun employment off into ever more distant exurbs, replacing them with centripetal forces returning them to the old urban cores and central business districtss.

Carbon taxes won’t do this all at once, needless to say, but they will at least start the process moving. This is good news for a lot of people, but especially for urban job seekers who can’t afford a car and can’t pursue job opportunities ever farther out in the suburbs because of racial barriers expressly designed to keep them away. Instead of their going to the jobs, the jobs will go to them.

Given all that, one would expect environmental progressives to clamor for ever more carbon taxes — the bigger the better. But anomalies arise yet again. When the state of Washington decided to submit a modest carbon tax to a referendum in 2016, “progressives” led by DC-based Food and Water Watch countered that the tax was regressive, that “people drive because they have to, not because they want to,” and that “[i]ncreasing gasoline prices only means that struggling families will have to cut back on other expenses to fill up their cars at the pump.” Opposition by such “social justice” groups was one reason that the tax, a US first, went down in defeat by a margin of nearly 3 to 2.

Like critics of marijuana legalization, however, “progressives” had no more than half a point. Boosting gas prices will negatively affect the working poor, which is why any proper carbon tax should include mitigations in the form of reimbursement, which the Washington referendum provided in spades, or promises to invest revenues in job-creating infrastructure projects. But the idea that “people drive because they have to” is nonsense. Driving is not inelastic. As prices rise, motorists cut back on discretionary driving or search for alternate means of going from here to there. The job of progressives is to demand that government provide such means and that it use its economic power to mold development in a way that is more cost-effective for working people, more environmentally benign, and more economically productive. Progressives also need to stop rejecting widespread evidence that “internalizing” climate damage-costs into the prices of coal, oil and gas instills powerful incentives to move off of fossil fuels, even when government investment lags behind.

The present transportation system meanwhile works less well for more and more people. By 2016, the average American was spending a hundred hours more each year in a car than in 1980, the equivalent of two and a half work weeks. Rush-hour speeds are declining according to a study by Texas A&M University, meaning that commuters are spending more time going less far. By 2012, the average car on the road was more than a year older than in 2007 according to the Bureau of Labor Statistics, while the cost of repairs, upkeep, and replacements was up as well. The duration of an average car loan has risen thirteen percent since 2009 while delinquent loans since 2012 have nearly doubled. The typical motorist is stressed sitting in traffic and stressed when struggling each month to pay off his or her loan.

As bad as this is, conditions are even worse for those who can’t afford a car and must therefore spend hours a day traveling by bus to ever more distant work places and then make their way across dangerous highways when they get back home. People like this are stranded in a hostile, highway-bound wilderness, forced to fork over large amounts of cash for a taxi or Uber whenever they want to go to a supermarket, an emergency room, or church.

The system is no less dysfunctional than America’s endless drug wars. Yet an increasingly undemocratic and anti-urban structure not only prevents Americans from acting effectively to fix it, it prevents them from even thinking about how to address a growing list of problems in a constructive way. Politics have broken down, trench warfare has engulfed Capitol Hill, and the showdown between the intelligence community and the White House grows ever more ominous. Is this how the captain of the Titanic felt when he suddenly noticed a mountain of ice looming before him?

Daniel Lazare, author of “The Frozen Republic: How The Constitution Is Paralyzing Democracy” and “America’s Undeclared War: What’s Killing Our Cities and How We Can Stop It,” among other books, is an occasional contributor to the Carbon Tax Center blog.

This guest post is by Philip H. Kahn, Co-Leader of Citizens’ Climate Lobby’s New York City Chapter.

A new report commissioned jointly by the operator and regulator of the New York State power grid has found that a $40 per ton charge on CO₂ emitted in generating electricity sold in the state would have an insignificant impact on electricity costs, provided the carbon revenues are redistributed to electricity customers in the form of bill reductions.

The report, with the unwieldy title, Pricing Carbon into NYISO’s Wholesale Energy Market to Support New York’s Decarbonization Goals, was prepared by the Brattle Group for the NY Independent System Operator (NYISO) and the state’s Public Service Commission. Its key finding — that monthly electric bills would likely rise no more than 2 percent and might even fall slightly (by 1 percent) — flies in the face of the conventional wisdom that carbon charges necessarily drive electric rates higher.

Half of the upward cost pressure from the carbon charge would be offset by returning carbon revenues to customers. The remainder would be alleviated through three separate but parallel marketplace responses:

1. The $40/ton carbon charge will incentivize natural gas generators to upgrade conventional natural gas-powered plants to combined-cycle plants that typically extract 50-60 percent more kilowatt-hours from each unit of fuel.
2. The higher market price for wholesale power will encourage development of more renewable (largely wind and solar) power generation to supply the state.
3. The carbon charge will, over time, replace the Zero Emission Credits (ZECs) and Renewable Energy Certificates (RECs) that now subsidize nuclear and renewable energy generation.

Carbon emissions from statewide electricity generation would fall by 2.6 million tons per year, according to the report, an amount equal to 8 percent of current emissions from the electric sector. “This estimate is probably conservatively low,” says Brattle, “because it does not account for the potential re-dispatch of existing resources, nor does it include innovative responses that the market might elicit but that we have not imagined.”

The Brattle researchers assumed that all of the revenue raised from the carbon charge would be returned to customers as line items reducing monthly bills. Alternative revenue treatments that direct some of the funds to energy efficiency and clean energy programs operated by the NY State Energy Research & Development Authority (NYSERDA) would result in deeper carbon cuts but at the possible expense of somewhat higher electric bills. This approach is supported by the Natural Resources Defense Council, the renowned environmental law group whose advocacy has led to utility and state government funding of end-use efficiency and renewables.

The Brattle report pegged its proposed carbon charge to the “social cost of carbon,” which the U.S. Interagency Working Group on the Social Cost of Carbon last year specified at $43/ton of CO₂ and rising over time. A combined carbon price of $40/ton from the carbon charge and the anticipated “market” price of $17/ton in 2025 in response to the tightening cap set by the Regional Greenhouse Gas Initiative, or RGGI, would total the $57/ton Social Cost of Carbon in that year.

The Brattle Group’s recommendation of a substantial, explicit carbon charge differs from the state carbon pricing bills under consideration in Massachusetts. Both MA H1726 (the state’s house bill) and S1821 (the senate bill) exempt electricity, with the rationale that carbon emissions from power generation in Massachusetts and the other Northeast states (except New Jersey) are already priced under RGGI. The $57/ton charge that Brattle recommends for New York State in 2025 would be more than triple the RGGI-alone price in that year.

Variations of the Brattle approach may be usable in other wholesale energy markets, especially those that are coterminous with a single state, such as Texas and California, and that use RECs to subsidize renewable energy.  What makes New York’s case particularly promising is that the subsidies now provided by the ZECs and RECs would be reduced because non-fossil fuel generation would receive the same market price set by fossil generators subject to the carbon adder.

If the carbon adder fee paid by the fossil-fuel generators is returned to the ratepayers then rates will not go up. Other ISOs with RECs in their markets could implement a similar scheme, but multi-state ISO markets would require negotiations between states with different REC regimes.

Implementation of the Brattle Group’s recommended carbon charge would give NY Gov. Andrew Cuomo a way out of his unpopular new program subsidizing several upstate nuclear power plants via Zero Emission Credits pegged to the Social Cost of Carbon. That program, which went into effect in April, adds a charge to all state customers’ monthly electric bills which flows to Entergy Corp., the reactors’ owner-operator.

Proponents laud the nuclear subsidy for monetizing the reactors’ zero carbon emissions and helping NY State meet carbon-reduction targets, but opponents point to the anticipated $7 billion price tag over the dozen years of the subsidy, as well as the lack of equivalent support for energy efficiency and other zero- or low-carbon electricity provision. A universal carbon charge such as the $40/ton fee recommended by Brattle would reduce the nuclear-only subsidy while retaining the monetary reward that could enable the reactors to continue operating.  As the carbon adder is increased, the subsidies would diminish, ultimately to zero.

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:

Congress is drinking beers in the Capitol and celebrating at the White House. I'm getting texts like this from my family. Fuck all of you. pic.twitter.com/Mo5nuWatlC

— Tommy Vietor (@TVietor08) May 4, 2017

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.

Supporters of nuclear power wasted little time pointing out how much carbon-free electricity production will vanish from closing the Indian Point reactors 25 miles north of New York City.

As the New York Times reported last Friday, NY Gov. Andrew Cuomo and Entergy Corp. have reached an agreement to shut the twin reactors permanently in 2020 and 2021, respectively. Both units are in their fifth decade of operation. Though their electricity output has finally attained consistently high levels, their checkered record and proximity to New York City have made them an abiding source of concern of safe-energy activists as well as the state’s governor and attorney general.

Like most operating nuclear power facilities, Indian Point produces a good deal of nearly carbon-free electricity. Charges by some antinuke activists that reactors have sizable carbon footprints are overblown. Most rely on outdated assumptions (e.g., that uranium “enrichment” still takes place in power-guzzling Cold War-era plants) or questionable accounting (charging today’s reactors for putative energy costs of far-future waste storage).

That production gave rise yesterday to the tweet shown at left from Jesse Jenkins, an electricity researcher with the Breakthrough Institute, purporting to “put the Indian Point plant closure into perspective” by showing that its electricity generation dwarfs that of other New York state sources of carbon-free energy.

Jenkins’ figures are probably right (I haven’t checked them, but he’s good with numbers). But they’re incomplete. They omit New York’s share of the largest U.S. source of carbon-free electricity in recent years: the electricity savings embodied in the divergence of total electricity usage from total economic activity.

We quantified that divergence in a new report last month, The Good News (blog summary version here). The bottom line, in numerical terms, is that in 2016 the U.S. was able to avoid generating a little over 500 TWh of electricity — almost one-eighth of the electricity it did produce — because electricity usage barely grew compared to 2005 consumption. (A TWh, one billion kWh, is a convenient metric.)

For reasons we spelled out in the report — structural shifts from energy-intensive heavy manufacturing to service industries; ratepayer-funded efficiency programs in tandem with government codes and standards for buildings, appliances and other end-use equipment; rapid penetration of digital technologies in energy management, product design and manufacturing, to name several — U.S. electricity generation in 2016 will likely be a mere 20 TWh above the 2005 level of 4,056 TWh, rather than in the 4,500-4,600 TWh range it would have reached if nationwide demand for power had grown after 2005 at the same relative rate to GDP that held during 1975-2005.

Almost by definition, those electricity savings are widely distributed and have taken place in every state. New York’s share may have been greater than the national rate, given its concentration of large office buildings and multifamily housing that are particularly ripe for money-saving energy-efficiency retrofits. For conservatism, we assign 3.8 percent of the 507 TWh of national avoided generation in 2016 to New York, based on its share of U.S. electricity usage in 2014, the most recent year with state data.

That works out to 19.1 TWh of electricity generation avoided statewide last year — all of it carbon-free — because the economy here, in tandem with the country as a whole, reduced its electricity-intensiveness between 2005 and 2016. (We use 2005 as a baseline because it’s both the benchmark year for many climate policy targets and the year in which U.S. electricity use began to markedly detach from economic output.) That figure surpasses by a wide margin the 16.4 TWh of annual electricity production that Jenkins ascribes to Indian Point, as our expanded chart shows.

It is true that electricity savings and nuclear power generation aren’t necessarily in conflict. Shutting Indian Point will require New York State policy, investment and consumers to push harder — much harder — on wind and solar as well as energy efficiency to achieve the carbon reductions that Indian Point now provides and would keep providing if the plant were re-licensed and continually refurbished to permit it to operate indefinitely.

But it is also true that Indian Point isn’t fully complementary with efficiency and renewables. The reactors’ inability to easily vary their output makes it harder for the state electric grid to integrate naturally variable wind turbines and solar power. Indian Point’s presence on the grid also depresses the prices offered for renewable electricity and energy savings alike. Conversely, the prospect of terminating both reactors several years from now will expand the horizons for carbon-free electric energy in New York state on both the supply and demand sides.

We hope this post adds useful context to Indian Point’s now-pending closing. It has been a major source of carbon-free electricity for New York state, but as of 2016 it’s no longer the pre-eminent one. Recognizing the contributions of energy efficiency in reducing greenhouse gas emissions will make it easier to fashion policies and organizing strategies that protect our climate, with or without nuclear power.

Jan. 24, 2017 update: French presidential candidate (and former prime minister) Manuel Valls yesterday renewed Nicolas Sarkozy’s Nov. 2016 call for a carbon border tax on imports from the United States, saying “When Donald Trump declares some kind of economic war on Europe, we must be ready.” More in this Fox News (!) story. 

This post is by Chris Hope, a prominent U.K. climate change policy researcher who served as a lead author and review editor for the Third and Fourth Assessment Reports of the Intergovernmental Panel on Climate Change. It is lifted more or less intact from Chris’s Nov. 15 post, A proportionate response to Trump’s climate plans. We have edited slightly for grammar and added several notes. — CTC.

During the U.S. election campaign, Donald Trump said he would dismantle the country’s domestic climate change policies and withdraw the U.S. from international climate agreements, most notably the Paris agreement which came into force earlier this month. In the week since he became President-Elect, he has given every indication that he is serious in his intentions.

So how should the rest of the world respond? It is tempting to indulge in wailing and gnashing of teeth, but in the real world of a Trump Presidency, this is unlikely to be effective. What is needed is a proportionate response. In France, former president (2007-2012) Nicolas Sarkozy has proposed what may well be the most efficient and effective measure, a climate change tax levied upon all US goods imported into Europe.

[CTC: Chris is referring to “border tax adjustments” — import fees levied by carbon-taxing countries on goods manufactured in non-carbon-taxing countries. World Trade Organization rules permit countries with carbon taxes to adopt “non-discriminatory harmonizing tariffs” to protect energy-intensive trade-exposed industries by eliminating the competitive advantage enjoyed by exports from countries that don’t tax carbon emissions. These tariffs also create incentives for non-carbon taxing countries to adopt carbon taxes, since harmonizing tariffs represent revenue that the exporting country could garner by imposing its own carbon tax. Our Border Adjustments Web page has more information.]

How large should such a tax be? If it is to be proportionate, it should cover the harm caused to the Earth from the production of the goods, a harm that will not be reflected in their price if the U.S. presses ahead with the unfettered use of fossil fuels. Let’s consider some ballpark numbers. The Gross Domestic Product of the US in 2015 was about $18 trillion. U.S. emissions of greenhouse gases in the same year were about 7 billion tonnes of CO2 equivalent. Dividing one quantity by the other, we find that every thousand dollars of U.S. production involves the emission of about 0.4 tonnes of CO2 equivalent.

[CTC: Chris’s 7 billion tonne CO2-equivalent figure is sourced to definitive USEPA data and comprises somewhat more than 5 billion tonnes of CO2, one billion tonnes of CO2-equivalent from methane, and perhaps 0.6 billion tonnes of CO2 equivalent from nitrous oxides, hydrofluorocarbons (HFC’s) and other heat-trapping gases.]

The best estimate we have of the global harm caused by these emissions comes from integrated assessment models, like my PAGE09 model which gives a mean value of about $150 per tonne of CO2 if valued by an average citizen in Europe, or $250 per tonne of CO2 if valued by an average U.S. citizen (U.S. citizens are on average about 50% richer than European ones, so they should value an equivalent physical harm more highly).

Applying these mean values as an ad valorem tax on imports of USA goods to Europe results in a tax of about 6%, if the European valuation of harm is used, or 10% with the U.S. valuation. These are higher, but not dramatically so, than Sarkozy’s proposal of a 1–3% tax on US imports.

How much might such a climate tax on U.S. imports raise? The EU presently imports about 400 billion Euros of US goods and services per year. So a 6% tax rate would raise about 25 billion Euros per year, and a 10% rate would raise about 40 billion Euros. If imports of U.S. goods and services have a price elasticity of -1, these revenues would be about 6% or 10% lower respectively.

[CTC: The implied revenue reduction of 25-40 billion euros, or $27-$43 billion in U.S. currency, represents potential U.S. trade losses. They equate to around $100 per capita, or roughly $400 per U.S. family of four.]

If adopted, this idea could be refined further by levying higher rates on U.S. goods that released a great deal of greenhouse gases during their production, and lower rates on others. And of course, in order not to be hypocrites, we in Europe would introduce a strong, comprehensive climate change of about $150 per tonne of CO2 equivalent on our own activities too. But that is only common sense.