We need to stop climate change. I feel like everyone knows this.
The easiest, cheapest, and fastest way to do this is through a carbon tax, even before accounting for the double dividend.
But why? Why can’t we regulate our way out of climate change without carbon pricing?
Source: EPA
Transportation is the largest source of greenhouse gas emissions. The largest source is from light-duty vehicles. So around 15% of total US emissions come from light-duty vehicles, AKA personal vehicles. We need to reduce the need to drive and increase the use of carbon neutral transportation. We need more trains everywhere. We need to nationalize our rails and increase public transportation as we build dense walkable neighborhoods. Most trips are short, and can be replaced by more sustainable modes of transportation. As we build these substitutes, a carbon tax will increase the cost of burning fossil fuels while the dividend puts money in people’s pockets which will help them buy renewable vehicles if they live somewhere where mass transit is insufficient.
Source: EPA
Electricity is the second largest emitter. Individuals cannot personal responsibility our way out of reducing emissions from generating electricity. While subsidies help in constructing new electricity generation, any reduction in existing emissions, which is the priority, will be filtered through the substitution effect, significantly reducing the efficiency of subsidies to bring coal plants offline.
Make a deadline to turn systems off? I love deadlines. I love the whooshing sound they make as they pass by.
The only realistic way is to charge people and companies every time we burn fossil fuels.
The same logic for the electricity production problem applies to industry. I fear subsidies will increase output more than reduce emissions. There’s a 50% chance I am right on this prediction. Depends on the margins.
Commercial and residential is from things like natural gas heating our homes. We can ban natural gas and propane in new homes. The carbon tax will deal with already existing installations of natural gas and heating.
The carbon tax will also deal with agriculture emissions.
We need a carbon tax.