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For #EarthDay 
week, let’s have a look at some bipartisan wishful thinking in the most recent @ForeignAffairs, from @TedHalstead, James Baker and George Schultz on how US can lead on #climatechange. THREAD https://www.foreignaffairs.com/articles/united-states/2020-04-13/strategic-case-us-climate-leadership
week, let’s have a look at some bipartisan wishful thinking in the most recent @ForeignAffairs, from @TedHalstead, James Baker and George Schultz on how US can lead on #climatechange. THREAD https://www.foreignaffairs.com/articles/united-states/2020-04-13/strategic-case-us-climate-leadership
1/ Let’s talk first abt how incredibly over-hyped carbon pricing is. Many EU nations have both emissions trading AND a tax. Research shows emissions in countries w ETS and no tax decline FASTER than those with ETS + tax. https://www.tandfonline.com/doi/full/10.1080/14693062.2018.1492897
2/ Tax rates are too low and not adjusted frequently enough. And they cause HUGE political fights, for fairly little in the way of emissions reductions. https://jacobinmag.com/2019/09/carbon-pricing-green-new-deal-fossil-fuel-environment
3/ Consuming less fossil energy is great, but getting “people to adjust their habits” won’t fix the problem. Decarbonization will not be driven by consumer behavior.
4/ C pricing promotes fuel *switching* -- to other #fossilfuels. No evidence that it results in firms abandoning them. https://ascelibrary.org/doi/abs/10.1061/%28ASCE%290733-9402%282008%29134%3A2%2840%29
5/ C pricing also promotes outsourcing – moving emissions to places w/o c pricing (aka leakage). https://journals.sagepub.com/doi/10.1177/0096340214546834
6/ Border tax adjustments could solve leakage – in theory. But LOTS of technical details to be worked out, which could potentially reproduce the same loopholes and challenges as c pricing. See @harrovanasselt https://voxeu.org/article/what-european-carbon-border-tax-might-look
7/ Also there's the question of actually generating political will to implement this among a core group of states. See my discussion of Nordhaus on this https://twitter.com/greenprofgreen/status/1250419963451461636
8/ So gee, what could we do instead of pricing carbon? Something that’s good for climate…something economically efficient? Hmm.. I don’t know, maybe END FOSSIL FUEL SUBSIDIES? https://www.nature.com/articles/s41586-019-1920-x
8/ IMF estimates that US spent $650 billion in fossil fuel subsidies in 2015. Taxpayers footing the bill for burning the planet. https://www.imf.org/en/Publications/WP/Issues/2019/05/02/Global-Fossil-Fuel-Subsidies-Remain-Large-An-Update-Based-on-Country-Level-Estimates-46509
9/ What else could we do? With NEGATIVE oil prices, there’s never been a cheaper time to nationalize the oil industry. Nationalization won’t solve all our problems, but it’s a start. Cc @katearonoff https://twitter.com/MarkVinPaul/status/1239622327035461632
10/ Along w/ c pricing, they suggest “simplifying & eliminating regulations.” Translation: less pressure on firms to *actually* decarbonize.
11/ Research shows that carbon pricing does much less to reduce emissions than other command and control regulations. Get rid of those regulations and we’re all (even more) screwed, climate wise. http://dx.doi.org/10.1177/0096340214546832
12/ Regulations, contra their assertions, can be immensely effective in reducing emissions. See especially fuel efficiency standards and renewable portfolio standards.
13/ Authors also don’t miss an opportunity for BRIC bashing, calling on them to “do their fair share. Two words on this: HISTORICAL EMISSIONS. Just stop w/ that shit already.
14/ US is apparently losing the “clean energy race” But as @jonasnahm notes, we don’t have time to reinvent the wheel. We should use the tech we have and not reinvent the wheel (or the solar panel) https://science.sciencemag.org/content/366/6467/794.
15/ Recap:
1.stop peddling carbon pricing
2.stop w/ the BRIC bashing,
3.don’t streamline regulations, ramp them UP
4.focus on industrial policy like a Green Stimulus outlined here by @aldatweets and @Dan_Kammen. /FIN https://www.theguardian.com/commentisfree/2020/apr/20/climate-crisis-will-deepen-the-pandemic-a-green-stimulus-plan-can-tackle-both
1.stop peddling carbon pricing
2.stop w/ the BRIC bashing,
3.don’t streamline regulations, ramp them UP
4.focus on industrial policy like a Green Stimulus outlined here by @aldatweets and @Dan_Kammen. /FIN https://www.theguardian.com/commentisfree/2020/apr/20/climate-crisis-will-deepen-the-pandemic-a-green-stimulus-plan-can-tackle-both
