Politics, policy and climate change...and maybe the aftermath of the BC election

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KenS

Benjamin wrote:
But we already know what this implies for the necessary size of a carbon tax - it has to be pretty high for consumer behaviour. For enterprises, it wouldn't necessarily need to be as high, but would need to be high enough to make it green changes actually deliver a comparative advantage to those firms willing and able to make the switch. We're likely to need a tax in the range of $100-150 per tonne. $10 per tonne (ala BC) will have an impact, but it will be negligible.

You and others like to referr to the success of the carbon tax in Scandanavia- where it didn't have to be that high before there was impact.

This points to the necessity to have carbon pricing in tandem with aggressive green initiatives.

Which is corraborated by the experience that we have that the kind of energy price increases that will come with a carbon tax cannot be expected to bring any more than minimal drops in comsumption compared to the pricing sledgehammer that is driving them.

And in North America whenever Liberals bring in carbon taxes, they bring it in with negligible green initiatives, and tax and fiscal regime that militates against spending intitiatives.

 

It is true that with enterprises pricing/incentive changes are going to translate more into actual consumption and emission reductions. But even there:

1. Historical experience is that firms very imperfectly take up savings/profit opportunities.

2. Again, our experience where this has worked in Europe is where carbon pricing push goes along with substantial investment incentive programs. We have no basis to expect consumption/emmission reductions in line with the amount of carbon tax 'push' if we do not put as much attention into the green spending initiatives as we do into getting the carbon pricing.

In practice, it ends up being a distraction to launch it this point into a 'technical' comparison of carbon tax versus cap and trade.

Thats the cart before.

The real question is how do we get a carbon pricing regime and the ramp-up to agggressive green initiatives that are its requisite complement.

And the relevant overall package of the Liberal carbon tax plans that are in place or have been offered, not only lack the green initiatives, they decisively cut off the political-fiscal capability of getting them.

Benjamin

So that would be a "no" to providing an alternative verifiable data source?

And what's the economic rationale that transit ridership should increase at the same ratio of oil price increase? 

And wouldn't we expect residential heating to be even more inelastic than gas consumption?

And what's your personal need to add words like "niddling", "muddled", "pedantic" to other's arguments rather than just addressing their points?  Are you trying to over compensate for something?

KenS

Benjamin wrote:

And what's the economic rationale that transit ridership should increase at the same ratio of oil price increase? 

The logic of this form of argument is what drives using words like "niddling".

Where did I say that transit ridership should increase at the same ration of fuel price increases?

In fact, I actually said that the problem is that it takes so much fuel pricing push to get a small consumption increase.

You persist in acting as if I said I'm expecting them to be the same, and/or there not to be a great deal of time lag do to ineleasticicty.

Which apperently means its OK for you to show any evidence of some movement- without reference to whether its an amount sufficient.

 

KenS

Benjamin wrote:

Actually, it's more like a ten-fold increase in real price from 1998-present day.  Consumer change was slow at the beginning of the 10-year period, which placed in a historical context is not that surprising, but change was very much there.  Take transit ridership for example.  According to this article http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20070627/public_tran... transit ridership in Canada increased for the period 2002-2006 setting record highs in each of those years.

I take back calling it 'niddling'. Its just incorrrect data and misuse of it.

We're agreed about the 10-fold increase. I was giving it in chunks of that [like doubling gas prices in 2 years 05-07] and what consumer behaviour was during the same period. All together, from beginning to end of the 10 year, its in the order of a 10 fold increase.

But consumer change was not slow at the beginning of the 10 year period, there was none. It began to be slow change, more like inching, past the mid-way point. By this point fuel prices are past their first doubling since the beginning of the 10 year period, and the pace is picking up to the doubling again in two years, and some of the consumer choice indicators are beginning to move in the range of 2-3% annualy. Miles driven and vehicle size/horsepower purchased weren't even mving that much yet.

Virtually none of the change comes until the consumer effects of the combination of reaction to the financial crisis and the last energy price spike of a year ago.

But I said that, when you offered the transit ridership example as supposedly some kind of counter. Except you never tried to refute what I said, just kept repeating that consumer behavious was changing the whole period and tossing in examples that did not support that claim [let alone were not true, such as the switch to smaller vehicles].

Brian White

Thanks for that.  I think it may be ineffective too but at least it is a start.   A hard cap would be incredibly difficult to impliment from scratch (Politically) and I do not think people have given that much thought. I can imagine a few  big employing companys bailing out of BC would really turn the screws on a government.  Thats why I say keep the carbon tax until the  cap and trade is worked out.  I think the NDP really should give in on this for pragmatic reasons.  Maybe you think it is "religion" to me and think I am an ass.

But be pragmatic.  

 What will you lose to gain my vote and others like it?  Very little.

Pride and stubborness are worthless attributes to a politician looking for votes.

Humour us.

Policywonk wrote:

Brian White wrote:

Anyone else from the NDP wish to explain in laymans terms why the Carbon Tax is so evil?

I think it's more ineffective than evil. No government will have the guts to raise it to levels that would make it effective, and if it worked tax revenues would go down for all programs because people would use less energy (less carbon-intensive alternatives not necessarily being immediately available). I think other people have discussed the problem of using it as a justification for lowering other taxes.

thanks

the key is the overall policy framework.  which is why i thanked Blair Redlin for mentioning that the NDP's work in BC may have helped build the movement for keeping BCHydro public.  this is a key part of the key overall policy framework.

why?

1) the major stakeholders in fossil fuels industries and the NAFTA energy corridors, including prospective water and electricity infrastructure financiers, ARE THE SAME PEOPLE.  They all sit on eachother's boards and with the co-opted Campbell and Harper gov'ts in various 'free' trade and investment forums.  This has been documented by NGOs and unions of all stripes.

2) Where infrastructure is forced into a P3 framework- public private partnership- via Campbell/Harper policy and regs, the private sector gains control.  They gain control because of the current unregulated nature of the global financial system, and because of  privacy legislation covering intellectual property rights to data including financial data.  Scads of documentation on the difficulty of getting actual info on P3 arrangements.  Usually they mean a straight channeling of public taxpayer dollars to said private equity investors.  * Note: at this point, the showings of actual publicly traded corp stock is not the equivalent of the holdings of actual private players.  The latter is quite secret- we don't know who is invested in what, where offshore they're hiding their paper money, or how much of it, nor what they'll pick up when enough of everything has crashed to firesale levels.  Those decisions are simply not in our hands.  And that is a big problem for democracy and the environment.  WE NEED TO KEEP ENERGY PUBLIC and reclaim what has been privatized to date.

3) a carbon tax in the context noted at 1) and 2) will simply take some $ from one branch of the casino and give it to another branch of the casino, both of which are in the practice of exploiting more energy sources to send the product/s south of the border.

They will exploit more fossil fuels (note Campbell's support for pipelines and offshore exploration), more nukes and more water to send energy south.  consumers and residential taxpayers will be paying through many different mechanisms for this carboniferous and drought-producing giveaway.

4) Comparing with Europe is useless, as they simply rely on nukes and fossil fuels imported from Russia, at the expense of the environment in their countries of their suppliers.  I'm sick of people holding the EU up as some sort of model.  They mine Africa and Eastern Europe and other parts of the globe to prop up a few windmill showcase numbers. 

5) i'm physically tired because i've been doing a lot of digging and outdoor work in recent weeks, so this is coming across in a very slow way and i probably need a coffee.

6) a cap has to happen, a tax on pollution too, but primarily in a context of public energy and major public green infrastructure development in a combination of wind/sun/geothermal/conservation etc.  no one particular alternative is going to do it, because of the vagaries of climate.  ie) in some places you get more wind, some more sun, at different times of the year, etc.

7) we really don't need fossil fuels or nukes.  this has been gone over umpteen times in many sources.  we need clean energy interactive grids, but public grids, especially when global finance is still such a free-for-all-private-players.  otherwise we won't get what we pay for, who knows what we'll get, and whatever bubble we get will be crashed again in any case.

8) I don't know what Suzuki or other environmentalists think or don't think, except from the bits i read here, or have seen in the past.  there seems to be disagreement on babble threads as to what has been said and motivations.  i don't know.  all i know is that having done work on some environmental issues for a number of years, i have noticed a great reticence on the part of some environmentalists to speak out about necessary economic structural changes. 

Maybe it will take the crash of the 'Green' Energy 'Revolution' to mimic the crash of the 'Green' agriculture 'Revolution' (which was neither) for us to all get on the same economic page??

 

 

 

 

 

Brian White

Yes, all that,  but, if the NDP was in power, couldn't THEY use the carbon tax for useful stuff?

You say it is a casino and I agree (now) but if you boys were in power, you could redirect the money, No?

Keeping energy public is fine but are you saying a farmer cannot have a windmill? And are you saying that apartments cannot do combined heat and power and sell the power to the grid?   There are turnkey generators to do that right now (but shitty price for the electricity sold back to the grid).

If you are advocating just giant generation stations  miles away from the consumer, sorry. That is a proven disaster.  The overall efficiency of fossil fuel electricity generation is under 40% and that is before losses getting it to the consumer are factored in.    If you generate right there where the consumer is, heat and power, you are up to 80% so you use half the fuel (and you change the way people think).

My ex girlfriend tried to get solar thermal on her condo roof but the condo association shot her down.  These are huge flat roofs that nobody ever uses. Solar thermal should be mandated for them!  They spend so many thousands per year on keeping the oil tank full just for showers!

The carbon tax seems to generate a lot of money (to me) and the government seems to decide where it goes.  I do not see how a left wing government can have a problem with that.  You have basically drubbed alternative energy in your article below.   Wind, no good?    Why?  If you cannot have anything else, it will be starve us off fossil fuels.  That will be really tough to sell.

If the overall policy framework is a bit loopy, members should have input to change it.

 Did you have input  or was it handed down from the gods?

Brian

 

thanks wrote:

the key is the overall policy framework.  which is why i thanked Blair Redlin for mentioning that the NDP's work in BC may have helped build the movement for keeping BCHydro public.  this is a key part of the key overall policy framework.

why?

1) the major stakeholders in fossil fuels industries and the NAFTA energy corridors, including prospective water and electricity infrastructure financiers, ARE THE SAME PEOPLE.  They all sit on eachother's boards and with the co-opted Campbell and Harper gov'ts in various 'free' trade and investment forums.  This has been documented by NGOs and unions of all stripes.

2) Where infrastructure is forced into a P3 framework- public private partnership- via Campbell/Harper policy and regs, the private sector gains control.  They gain control because of the current unregulated nature of the global financial system, and because of  privacy legislation covering intellectual property rights to data including financial data.  Scads of documentation on the difficulty of getting actual info on P3 arrangements.  Usually they mean a straight channeling of public taxpayer dollars to said private equity investors.  * Note: at this point, the showings of actual publicly traded corp stock is not the equivalent of the holdings of actual private players.  The latter is quite secret- we don't know who is invested in what, where offshore they're hiding their paper money, or how much of it, nor what they'll pick up when enough of everything has crashed to firesale levels.  Those decisions are simply not in our hands.  And that is a big problem for democracy and the environment.  WE NEED TO KEEP ENERGY PUBLIC and reclaim what has been privatized to date.

3) a carbon tax in the context noted at 1) and 2) will simply take some $ from one branch of the casino and give it to another branch of the casino, both of which are in the practice of exploiting more energy sources to send the product/s south of the border.

They will exploit more fossil fuels (note Campbell's support for pipelines and offshore exploration), more nukes and more water to send energy south.  consumers and residential taxpayers will be paying through many different mechanisms for this carboniferous and drought-producing giveaway.

4) Comparing with Europe is useless, as they simply rely on nukes and fossil fuels imported from Russia, at the expense of the environment in their countries of their suppliers.  I'm sick of people holding the EU up as some sort of model.  They mine Africa and Eastern Europe and other parts of the globe to prop up a few windmill showcase numbers.

5) i'm physically tired because i've been doing a lot of digging and outdoor work in recent weeks, so this is coming across in a very slow way and i probably need a coffee.

6) a cap has to happen, a tax on pollution too, but primarily in a context of public energy and major public green infrastructure development in a combination of wind/sun/geothermal/conservation etc.  no one particular alternative is going to do it, because of the vagaries of climate.  ie) in some places you get more wind, some more sun, at different times of the year, etc.

7) we really don't need fossil fuels or nukes.  this has been gone over umpteen times in many sources.  we need clean energy interactive grids, but public grids, especially when global finance is still such a free-for-all-private-players.  otherwise we won't get what we pay for, who knows what we'll get, and whatever bubble we get will be crashed again in any case.

8) I don't know what Suzuki or other environmentalists think or don't think, except from the bits i read here, or have seen in the past.  there seems to be disagreement on babble threads as to what has been said and motivations.  i don't know.  all i know is that having done work on some environmental issues for a number of years, i have noticed a great reticence on the part of some environmentalists to speak out about necessary economic structural changes.

Maybe it will take the crash of the 'Green' Energy 'Revolution' to mimic the crash of the 'Green' agriculture 'Revolution' (which was neither) for us to all get on the same economic page??

 

 

 

 

 

remind remind's picture

How many fossil fuel hydro generating plants do we use in BC Brian?

Brian White

What is your point?  If you burn oil to warm an appartment building (they do it anyway)  and produce electricity at the same time, the overall efficiency of the process goes way up.

Around 80% efficient.  You are burning the oil anyway, why not get get the extra oomph out of it?  If you just take electric heat off the grid to heat the same appartment building,  your overall efficiency for the process goes way down. 

The efficiency of the whole process is what counts not individual steps in the chain.

 

remind wrote:
How many fossil fuel hydro generating plants do we use in BC Brian?

West Coast Lefty

KenS wrote:

You and others like to referr to the success of the carbon tax in Scandanavia- where it didn't have to be that high before there was impact.

This points to the necessity to have carbon pricing in tandem with aggressive green initiatives.

Which is corraborated by the experience that we have that the kind of energy price increases that will come with a carbon tax cannot be expected to bring any more than minimal drops in comsumption compared to the pricing sledgehammer that is driving them.

And in North America whenever Liberals bring in carbon taxes, they bring it in with negligible green initiatives, and tax and fiscal regime that militates against spending intitiatives.

 The real question is how do we get a carbon pricing regime and the ramp-up to agggressive green initiatives that are its requisite complement.

And the relevant overall package of the Liberal carbon tax plans that are in place or have been offered, not only lack the green initiatives, they decisively cut off the political-fiscal capability of getting them.

I agree with your major point KenS - carbon taxes need to be combined with major green initiatives to drive behaviour change and low-carbon investment decisions by corporations and communities.  I hope you'd also agree with the inverse statement - the major green initiatives are not effective without robust carbon pricing.  The federal retrofit programs under the Libs and Conservatives, the "One-Tonne Challenge" Paul Martin disgrace with the Rick Mercer ads, the Harper tax credits for bus passes...those are all useless without carbon pricing.  They only benefit those who would have rode the bus or renovated their home anyway. 

While it's true that carbon taxes give certainty on price but not the emissions levels, and cap-and-trade is in theory the reverse, in practice, carbon taxes are simple and quick to implement (Gordo announced it in February 2008 and it was effective July 2008) and as we found out Tuesday night in BC, carbon taxes are politically viable.  Cap-and-trade is cumbersome to enforce, loaded with loopholes in practice (the current Waxman-Markey bill in the US Congress is already being weakened by giveaways to special interests and free allocations of credits, instead of the 100% auction required to establish an effective carbon pricing regime via cap-and-trade) and takes years and years to implement.  It's by no means certain that cap-and-trade will even pass the US Congress - being so complicated and unclear on price levels, it is easy for the opposition to demonize.  Carbon taxes are like the GST - everybody hates them and loves to bash them, but if a government has the courage to proceed, they have a lot of staying power.

Finally, where I disagree with KenS is that the most important green initiatives don't always require a lot of $$ - regulations on equipment and appliance energy efficiency, building codes, low-carbon fuel requirements, renewable energy mandates to utilities, local government land-use bylaws, landfill and agriculture practice standards, etc, are the key pieces.  A robust carbon price will make public transit economically attractive and increase ridership (as we saw in the last 12 months) and the increased farebox revenues will support higher service levels over time.  There are lots of federal and provincial tax breaks and incentives for energy efficiency renovations and a high carbon price will drive consumers to make those improvements much better than simpy increasing the incentives.

The 2008 BC Climate Action Plan includes modelling by Mark Jaccard and Associates (see Appendix I in the PDF file) which indicates that the BC government's policies (including carbon tax and cap-and-trade, it's important to remember that BC is doing both) will achieve 73% of the 33% GHG reduction target by 2020.  Some on babble will view Jaccard as a Liberal hack - in fact, he's a world-renowned academic expert on climate change.  The BC NDP appointed him head of the BCUC in the 90s and Glen Clark appointed him to do a study on high gas prices, so he's hardly an anti-NDP partisan.  In any event, I suggest you read the modelling work before slamming it.  The constant claims that "BC has no green initiatives because the carbon tax is revenue neutral" and "the carbon tax will do nothing to reduce GHG emissions" are simply nonsense, as the report at the link above indicates. 

KenS

West Coast Lefty wrote:

Finally, where I disagree with KenS is that the most important green initiatives don't always require a lot of $$ - regulations on equipment and appliance energy efficiency, building codes, low-carbon fuel requirements, renewable energy mandates to utilities, local government land-use bylaws, landfill and agriculture practice standards, etc, are the key pieces.  A robust carbon price will make public transit economically attractive and increase ridership (as we saw in the last 12 months) and the increased farebox revenues will support higher service levels over time.  There are lots of federal and provincial tax breaks and incentives for energy efficiency renovations and a high carbon price will drive consumers to make those improvements much better than simpy increasing the incentives.

...  The constant claims that "BC has no green initiatives because the carbon tax is revenue neutral" and "the carbon tax will do nothing to reduce GHG emissions" are simply nonsense, as the report at the link above indicates. 

I will read the Jaccard modelling. But its going to have to be a whole lot better than what you have written here, speaking of nonsense.

Lots of green initiatives don't require spending. And we should do them too. But unless we are willing to put a lot of investment- aggressive spending by North American standards- into building retrofit and small scale alternative energy for example, then trying to achieve it by changing product regulations will just nip around the edges. We should not expect to get the kind of emission reductions Europeans got from implementing the carbon tax without the kind of spending they put into green initiatives. Germany did not become the leader in photovalics, or Denmark in wind energy, because of a carbon tax.

And I'll be very surprised if Jaccard speaks at all to 'debunking' as you put it:  "BC has no green initiatives because the carbon tax is revenue neutral" [which is really "BC not only has no green initiatives now (bad enough), but the tax cuts yoked to the carbon tax will make it impossible to ramp up green initaiive spending later."] But you've already said that major spending isn't required. If thats the way it is, then BC will be the jurisdiction pioneering what a carbon tax gets you when it isnt twinned with major green initiative spending.

KenS

Some comments on the Jaccard model.

The model is run comparing business-as-usual [no policy change] emmission levels, to emission levels with specified climate change policy actions.

There is just a global projection given all the Campbell government changes, given some pretty substantial government spending promises, and even some spending inititaives recommended that Jaccard thinks are required.

Since there is no breakdown of the policy components, it does not say how much reduction is attributed to the carbon tax, and how much to cap-and-trade. But there are some fairly extensive tables of emission and consumption levels given both low and high energy price scenarios. Overall consumption continues to increase steadily even under the high energy price scenario- which is consistent with what we have seen [and belies what causual carbon tax proponents conveniently see in the recent bt VERY belated drops in consumption.]

Given that the model shows very minimal effects on consumption even from quickly rising energy prices, we can see what relying on a carbon tax will get us.

So it comes down to how much you can trust this government to follow through with the green initiative promises it has made for later. So with government revenues slipping down, and income tax cuts tracking the carbon tax increases racheting the pressure further, and a government that has resisted mass transit investment during good times, how much do you suppose that promise of $14billion mass transit investment is worth?

Its a key part of the model that projects those emission reductions. Not to mention the part played by significant further expenditures Jacard models in, but the government has not mentioned.

What we know we will get is the carbon tax and the income tax cuts that go with them. We can expect very little from the carbon tax by itself.

KenS

KenS wrote:

And I'll be very surprised if Jaccard speaks at all to 'debunking' as you put it:  "BC has no green initiatives because the carbon tax is revenue neutral" [which is really "BC not only has no green initiatives now (bad enough), but the tax cuts yoked to the carbon tax will make it impossible to ramp up green initaiive spending later."] But you've already said that major spending isn't required. If thats the way it is, then BC will be the jurisdiction pioneering what a carbon tax gets you when it isnt twinned with major green initiative spending.

As expected, Jacard makes no comment as to the reliability of Campbell government spending promises for future budgets. And no comment as to the effect the tax cuts will have on the reliability of those promises. [Let alone how feasible they will make the spending commitments Jacard models in of his own accord.]

Plenty of other caveats about assumptions made. But not the elephant in the room.

Maysie Maysie's picture

Closing, long thread.

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