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by dougmwne
2624 days ago
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Serious answer: It would take a small political shift. We do not need to reinvent our economic systems, we just need to push back against the political power of a few established special interest groups that want to protect their current profit. Green technologies are already being adopted rapidly. Smart government regulations, taxes, and incentives can speed along these changes. The situation is not hopeless. We're having an increasing impact on the climate, but we're not extinct yet. Vote. Tell your friends to vote. Cultivate green initiatives in your own community. Contribute to environmental organizations. Buy the low carbon alternative. Steer your career to build the future instead of picking over the carcass of the past. Stop waiting on the world to change. |
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> We do not need to reinvent our economic systems, we just need to push back against the political power of a few established special interest groups that want to protect their current profit.
Ironically, with some of the better solutions (e.g. a Carbon Tax), fossil fuel companies may not actually see reduced profit, but that is not well understood by the industry since the reason is slightly subtle.
Since energy demand is relatively inelastic, increasing the price only slightly decreases consumer demand. While that by itself is technically a loss for energy companies, a sensible carbon tax also creates a secondary market to dispose of CO2. The majority of the additional consumer cost of energy is actually paying that secondary market to take the CO2. It turns out that disposing of CO2 is primarily an energy cost, which means the net demand for things like natural gas can actually go up.
At the moment, my personal favorite solution is to implement a "Carbon Rebate"--basically a revenue neutral tax. You tax CO2 emissions (probably at the source), and create a secondary market to offset emissions to avoid paying the tax. Any revenue from the tax is uniformly redistributed to consumers (perhaps as a tax credit), and you have the "tax" rate ramp up year over year. This establishes price discovery and creates an economic incentive to solve the problem without being significantly disruptive to either the industry or consumers (and somewhat exploits the prisoner dilemma). From a US-centric viewpoint, trade agreements would be required to enforce this tax on goods imported from other countries that are not subjected to an analogous carbon price. Since the import tariffs money would be redistributed to US citizens, it creates an incentive for those countries to adopt a similar policy.