Lately we’ve seen the president of the World Bank and ‘business leaders from the very carbon-intensive industries’ pushing for carbon pricing (taxes or ‘carbon trading’ schemes). This is intended to demonstrate their deep change of heart and determination to start seriously addressing climate change, but to my eyes it is a deeply cynical, pernicious attempt to channel the passion of those deeply-committed to action on climate change into mechanisms that will only maintain the suicidal status quo.
Which is why I poured all my experience of ten years’ work on the topic into this peer-reviewed academic paper, which I believe demolishes the case for carbon taxes or carbon trading schemes as the way forward, and shows a clear, well-researched alternative (though it took almost as much effort as writing my book!). Read more »
I heartily endorse his perspective, but disagree when he argues in support of carbon taxation at around fifteen minutes in, saying that “we need to make fossil fuels more expensive”. In my opinion, we do not – we need to guarantee a fair entitlement to the available energy, not ration it by the depth of people’s pockets.
As Richard says, “if you’re taxing everybody on their use of fossil fuels – raising their cost of living – it’s pretty hard to get their buy-in to that”, but once you guarantee people a fair entitlement, in line with a declining cap, society can then collectively focus on keeping the price of energy as low as possible, which is a simply-understood task that everyone can buy into with enthusiasm.
Richard is touching on a widely-unrecognised contradiction at the heart of present energy/climate policy discussions – the desire to raise carbon prices while keeping energy prices low. Market-based approaches struggle to see past this, but TEQs would resolve it at a stroke, through the recognition that reducing the quantity of carbon emissions can be best achieved by means other than a high price.