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by AnthonyMouse 2541 days ago
> I personally find ideas such as these are far better for world's ultra-poor then raising the price of energy thru carbon taxes, as pretty much the only way people can move into a significantly better living situation is thru the use of energy.

"Carbon tax hurts the poor" is oil industry propaganda. The poor use less carbon than average -- especially the "ultra poor" -- but everyone receives the same dividend. It's a net transfer to the poor.

On top of that, the underlying cost (after accounting for tax, subsidies and regulations) for oil in poorer countries is higher than in richer countries because they have worse infrastructure for delivering fuel. You can put solar panels and batteries on a shack in the middle of a field and have electricity for decades. To do that with a gas generator you need gas stations, vehicles to deliver it, roads to drive them on etc. They don't have those things, and won't get them overnight, but meanwhile you can give them electricity today and they immediately get running water and electric light and wireless telecommunications etc. So oil is garbage for them and they're better off never burning a drop of it while the people who do are paying a carbon tax that funds a dividend they can use to buy solar panels.

1 comments

It is true but not on individual level, on country level. There are countries that generate > 80% of their energy from fossil fuels and do not have enough money to invest at scale in nuclear, or wind, or solar. Rich Western countries on the other hand invested in clean energy first, and now that they have significant advantage in that area they are trying to impose arbitrary CO2 limits, which is kind of pulling up the ladder behind them - now the poor countries not only have to find money to invest in clean energy, but also twice the amount, to pay penalties for exceeding those limits.
> It is true but not on individual level, on country level.

It's true all over the place.

Suppose you live in a country which gets 80% of its energy from fossil fuels. Well, that sucks, so now your average energy costs go up by $1000 a year. You can't afford that! Only you get it all back. You get a $1000 dividend, use it to pay for the same energy you did before, and nothing changes.

Except for one thing. When your country continues its path to industrialization, nobody is ever going to build a new coal fired power plant again. All the new capacity will be non-fossil fuels, because now they're much cheaper relative to coal -- no carbon tax.

The only cost you're really paying is the relative price difference between fossil fuels and alternatives. But that's already close to zero and has non-cost benefits for your country like air quality and energy independence.

Moreover, the idea that this is some cost for developing countries that developed countries didn't have to pay is also a lie. The cost of renewables is driving the cost of fossil fuels down through competition. The carbon tax is only needed to prevent that -- to keep their price back up around their traditional cost, which makes them uncompetitive with the falling price of renewables, so that they die out instead of the lower demand causing their price to fall to the point that they still end up as 20-50% of generation capacity.