Tag Archives: CARBON

CARBON TAX: Not Enough 2

Carbon Tax Failure: NOT Enough

There is a failure of the press to cover urgency of carbon tax. Carbon should not flow unpriced into the atmosphere, any more than you should be allowed to toss your garbage in the street. It makes no sense that the fossil fuel industry is allowed to put out their waste for free, using the atmosphere as an open sewer.

Nearly all of those decisions share a common, crucial element: they are shaped, by the relative prices of available energy choices. The only way to get enough change is to send a price signal so that everyone from investors to car buyers will change their behavior automatically:  a kind of perpetual motion machine. 

A straightforward plan is simply to tax carbon directly. Canada has introduced the gradual approach of a $10/ton of carbon emissions to finally get the ball rolling, while some of the provinces have elected to increase this tax to $30/ton.  In the meantime, Exxon has been planning for $50 a ton to make sure it won’t put a crimp in their business.  

Yes, carbon tax is inevitable but one thing stands in the way: PRICE POINT.  If we want to move the needle, we have to move the market. We need a top down message. A steadily rising tax on fossil fuels will send a strong price signal. A proposed carbon tax pending in the New York state legislature (A.B. 8372:  proposes to increase the tax gradually from $35 to $185 per ton.) 

Is that the only thing that needs to be done?

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CARBON EMISSIONS 2

Not Lower Present Carbon Emissions

A carbon tax is a great idea, if we had a government honest enough to implement it properly. We should all be concerned with carbon emissions that will be present in our atmosphere for 200 years. Surveys have found high majorities of economists (more than 80 per cent) also support carbon pricing. Justin Trudeau announced a carbon price for all of Canada, starting at a modest $10/ton of CO2 ($0.025/liter of fuel) in 2018 and rising over five years to $50 ($0.125/liter of fuel). The carbon tax would cost the average family about $1,250- $1,500 a year. So it means that we will be paying more for everything. That’s because almost all goods and services consume fossil fuel energy. This is a form of paying a sin tax for using energy, which may not lower emissions. (The $10/ton is equivalent to $0.09/US gal.)

British Columbia’s revenue-neutral carbon tax on fuel is equivalent to $30 per ton of emissions. In Alberta, a carbon levy will be applied to fuels at a rate of $20 per ton, starting Jan. 1, 2017, increasing to $30 per ton a year later.

Anyone familiar with carbon pricing knows Trudeau’s minimum price, even at $50 per ton, is far too low to significantly cut emissions. If Canada has any chance of meeting its target, which used to be reducing our emissions to 17% below 2005 levels by 2020 and 30% by 2030, he would need to set a carbon price of about $150 per ton, starting immediately.

Some pricing experts like Simon Fraser University’s Mark Jaccard estimated that the floor price should be $30/ton increasing every year until 2030 to $200/ton.  This would be an equivalent of $0.47/liter of gasoline or $1.77/US gal.  (1 liter = .264 US gal). Obviously, there would have to be an offsetting general tax reduction so as not to act as an extra burden to the average tax payer.

The Norwegian carbon taxes started in 1991 and were among the highest in the world ($44 US/ton of CO2). Despite significant price increases for some fuel types (13% for gasoline), the carbon tax effect on emissions was modest (a 16 % reduction in emissions). This implies a high cost of reducing emissions from sources on which the tax is levied.

The real enemy is heat and us.

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Africa Micro Finance 2

Living Water Micro Finance in Africa 

is available from LIVING WATER MICRO FINANCE Inc., a non-profit corporation. Farmers can borrow small sums of money for seed and land rental on a short term basis. 

Let us look at the human side of  Low Interest Micro Finance :

“I got a loan from a Micro Finance company and planted mango grafts. It was difficult in the beginning because there was no income from the trees [during the first five years], and still I had to work very hard. I had to water and care for the trees and also work as a daily laborer whenever work was available. But when the mangoes began to bear, I had income every year. I could repay my loan easily. Then I was able to dig a well, and now I have water year round. Now that I have water I can run my own farm.

God has much to do; He is very busy running the universe. He does not need to take care of my farm anymore. Now I do that myself.”
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