Embodied Energy and Exports

1. ONe quarter of World Wide Emissions are due to imports and exports
2. Same percentage for China
3. If the US carbon dioxide were done on a net basis, our emissions would be eleven percent higher than our current rate

Story argues that carbon dioxide should be applied to imports and exports, something I have argued here in the sortition-based badness tax. (Suprisingly , China and India argued vociferously for this at Copenhagen.)

Embodied Energy in Imports for Carbon Tax

One of the problems with most carbon tax or cap and trade systems, is that they allow imports that have a high carbon foot print or embodied energy. The carbon tax must be applied to imports, otherwise that favors imports from those countries that do not regulate their greenhouse gasses. This is just part of the pollution haven factor which I cited in my first blog post.

Some people recognize this, including the Mine worker's Union President, Cecil Roberts complained about China and India which are producing a coal-fired power plant every week.

Cap and Trade Alternative

An alternative to Cap and trade for reducing climate change gasses is a Participatory Democracy Consumption Tax. One advantage is that it allows for one to determine the amount to cap by letting businesses compete to see how low they can reduce carbon emissions.

It is important to protect vulnerable consumers, e. g., those who already have a large house in a city served by a coal-burning power plant. Or those who might have good reason to do extensive driving, e. g. a married couple who cannot find jobs in the same city or an those who have relatives in a tertiary care facility. Individuals can apply to participatory juries for the ability to purchase electricity, gasoline, etc. free of a carbon tax.

Another Krugman Article Confirming...

I argued for a consumption tax that is a function of badness, which includes most of all, environmental badness. Paul Krugman points out that this is not evil protectionism.