``not be meeting Kyoto's targets.``
Yeah, but the ink on the Kyoto Accords has dried and he has committed Oz land to it.
Yeah, but the ink on the Kyoto Accords has dried and he has committed Oz land to it.
The point I was trying to illustrate is, you can make just about anything look good economically if you don't include all the data, and you should take such assurances of economic booms with a grain of salt.What does Carbon taxes in Norway have to do with what you quoted from me? That tax in Norway is an example of what not to do. I'm not an idiot, and I don't jump on board because something has been greenwashed, or promoted by the loudest talking heads. That's the benefit of hind sight, we can see how some programs have failed, and others have given good results. Even economists get it wrong sometimes.:lol:
Carbon taxes and carbon trading are two different mechanisms.
Recent report I heard, the top 1% of income earners in the US take in 14% of all earned income, and pay 34% of all income tax.More right wing propaganda.
Earlier, when we discussed how the poor pay more in blood taxes for the wars created by the wealthy elites, the reply to that was ''cry me a river''.
The point I was trying to illustrate is, you can make just about anything look good economically if you don't include all the data, and you should take such assurances of economic booms with a grain of salt.
By and large I agree with you here. "Green" technology is a booming and growing segment of the north American economy, and many of the technological developments will be great for reducing pollution and increasing efficiency. The problem is getting the government involved. Governments have a horrible track record when it comes to investing in and promoting industry. Generally they subsidize the failing industries at the expense of the successful ones and put a lot of extra cost on the taxpayer and consumer. Better to just let the market respond to demand.Right, I'm aware of the grain of salt analogy. That should go without saying. Do you actually think that more jobs is a bad thing? Governments love to brag about job creation, but by and large, that's a symptom of a good market. Governments can actually create jobs here, because legislating efficiency gains, and promoting efficiency as an equal par to profit creates incentive for more jobs, it's a new market.
Green collar jobs are something North America's economy would excel at. High tech research and implementation is the bread basket of North American industry. Why not put that to use to solve a problem, another feather in the North American cap?
Extrafire said:Recent report I heard, the top 1% of income earners in the US take in 14% of all earned income, and pay 34% of all income tax.
Seems they're already doing more than their share.
Actually it was a recent survey, although I'm not sure of the exact numbers. I also used to have the exact numbers from Canada, and they were, if memory serves, somewhat similar, but they referred to "all" taxes rather than just income tax. Remember, there are a lot of consumption taxes, both hidden and open. The Canadian figures came from Statistics Canada.That is a myth popularized by the corporate elitists. But there isn't a shred of truth in it.
I don't participate in much of this forum so I have no idea what you or most anyone else here does or didn't do.Consider how corporations pay next to nothing in taxes or how their overseas incomes are tax free ever since Reagan closed down the OIO division of the IRS. You've been on this forum for a couple of years so you undoubtedly remember that I am a former IRS agent and know all the insides of the tax industry. I can list all the tax free perks and many instances of corporate welfare that is enjoyed exclusively by the wealthy elites. But that is a subject discussed previously so I won't bother to repeat myself.
When the new lefty gov't of Oz realized how much going green would raise electricity rates (and no matter how you try to disperse the cost, it will always hit the poor hardest) they promptly announced that they weren't about to implement Kyoto, even though they'd just signed on. See above post by Toro. And Europe is an example? Europe which scolds us and shakes it's fingers at us and boos us and cries "shame"? That Europe? The Europe where carbon taxes have resulted in economic downturn? The Europe that isn't going to meet it's own Kyoto targets is a good example? What have you been smoking?A given government's unwillingness to create progressive legislation to accomplish a certain objective should not be taken as evidence that the objective will burden the poor.
In North America, many people enjoy the perverse universal cost of electricity: one rate for all customers. In Europe, energy is contracted. If your energy demands are low, you receive a low rate on your electrical bill. If your demands are high, you pay a heavy price for each kilowatt hour.
Since many advocates of progressive climate policy favor various forms of carbon tax, it would be necessary to implement a system much like the one which exists in Europe. So as opposed to burdening the poor, implementing Kyoto could, all things being equal, actually lower the cost of electricity for the poor. The reality of a progressive cost schedule would of course depend on the nation, its average cost of production, the dispersion of the demand distribution, and other regional factors.
Lack of imagination is not a proof of concept. An unwillingness to implement policy is not the same as impossibility.
When the new lefty gov't of Oz realized how much going green would raise electricity rates (and no matter how you try to disperse the cost, it will always hit the poor hardest) they promptly announced that they weren't about to implement Kyoto, even though they'd just signed on. See above post by Toro. And Europe is an example? Europe which scolds us and shakes it's fingers at us and boos us and cries "shame"? That Europe? The Europe where carbon taxes have resulted in economic downturn? The Europe that isn't going to meet it's own Kyoto targets is a good example? What have you been smoking?
When the new lefty gov't of Oz realized how much going green would raise electricity rates (and no matter how you try to disperse the cost, it will always hit the poor hardest) they promptly announced that they weren't about to implement Kyoto, even though they'd just signed on. See above post by Toro. And Europe is an example? Europe which scolds us and shakes it's fingers at us and boos us and cries "shame"? That Europe? The Europe where carbon taxes have resulted in economic downturn? The Europe that isn't going to meet it's own Kyoto targets is a good example? What have you been smoking?
"The poor are victims of Kyoto" what rot! The poor have always been victims of the upper crust. Kyoto may be seen to be an insturment of bankers and a torment of the poor, it wouldn't be the first time a chicken bone was served on gilded dinner ware. Koyoto is seen for the most part as benevolent intention, it's naysayers and adherants alike are a strange brew of interests. I'm suspicious, how can the system that caused imbalance and thrives on it be employed to fix anything or even trusted to define the problem.
I posted the following in another thread:Yes, Europe is an example of an economy with a progressive energy cost schedule, the irrelevancies you quote notwithstanding. The economy here is faring the subprime crisis much better than many others, so I have no idea what economic downturn you are talking about.
And the rebuttal which I added some emphasis to for your edification:Taxes beat red tape
Carbon tax propelled Norway to global leadership
Mark Jaccard, Nic Rivers and david Keith
Financial Post
Wednesday, November 21, 2007
In a recent article, Aldyen Donnelly argued that evidence from the United Kingdom and Norway shows that greenhouse-gas taxes (a.k.a. carbon taxes) fail to reduce emissions, hurt the poor and cost manufacturing jobs. Throughout the article, she blames academics ("Mark Jaccard, among others") for promoting carbon taxes when we should instead be explaining the advantages of regulations "like fuel-efficiency standards for automakers and mandates that require electric utilities to buy a certain portion of their total sales from zero-generation sources."
Ms. Donnelly (in Burning the Poor, Oct. 31) might wish it were only us academics suggesting that pricing is an effective way to reduce emissions. But the chief executives of Canada's 25 largest corporations and the chief economist of Toronto-Dominion Bank, who have recently come out in favour of pricing emissions, are not academics. In fact, a recent poll by the BBC World Service showed that 57% of Canadians support a carbon tax, rising to 81% if the tax is "offset by other tax breaks so that total taxes remain the same."
Ms. Donnelly suggests that carbon taxes and other regulatory policies cannot coexist. But even we ivory-tower academics know the world is not so simple. Indeed, we have frequently emphasized the potential effectiveness of the very regulatory policies Ms. Donnelly is describing. But the norm among countries that are serious about the risks of climate change is to apply a combination of policies to ensure we can no longer freely emit greenhouse gases.
Ms. Donnelly claims that Norway's carbon tax has had a perverse effect in leading to rising emissions relative to Canada and poor economic performance. She invites the reader to look at official national statistics. So we did. According to the national statistics offices of Norway and Canada, during the period 1990-2005, per-capita greenhouse gas emissions increased 7.5% in Canada but fell 0.4% in Norway. At the same time, Norwegian per-capita economic output grew 47%, compared with Canada's 30%, while Norway's oil and gas production per capita grew at much faster rates than Canada's.
Norway's economy has performed wonderfully, while its carbon taxes have helped propel it into global leadership in emission-reduction technologies. After the imposition of the carbon tax in 1991, the Norwegian company Statoil took the decision to
implement the Sleipner project, in which carbon dioxide is injected into a deep saline aquifer 1,000 metres under the North Sea floor. According to Statoil's Web site, the "decision to inject was taken in 1991 following the introduction of a CO2 tax."
In the same vein, Norway may soon be the first country to generate near-zero-emission electricity from fossil fuels, with its coastal project to generate electricity in concert with carbon capture and storage. The pressures of the carbon tax, alongside other policies, are helping Norwegian businesses to become world leaders in the emerging field of clean energy.
Ms. Donnelly also claims that carbon taxes hurt the poor, obliging government to provide compensation, as in the United Kingdom. But one of the strengths of the carbon-tax approach is precisely that, unlike regulations, it provides revenue for ensuring low-income groups are not worse off. Technology regulations, on the other hand, force people -- rich and poor -- to acquire low-emission technologies that are more expensive. They do not compensate the poor or anyone else for this extra cost.
If we Canadians don't care that much about economic performance, we can avoid carbon taxes and regulate our way to greenhouse-gas reduction. And, as applied academics, we are willing to help design those regulations in ways that minimize (but cannot eliminate) their negative effect on economic output and on low-income groups. But can Canadians really afford to be so cavalier about economic growth?
Finally, Ms. Donnelly argues that where they have been applied, particularly in the United Kingdom, carbon taxes are now profoundly unpopular. But the same recent BBC poll that showed Canadian support for carbon taxes also showed 54% support in the United Kingdom for an increase in carbon taxes from current levels -- support that rises to 77% if the extra tax is offset by equivalent tax reductions. After years of this policy, support is very strong, which is surprising when one considers that this is public support for being taxed! Indeed, the British Opposition Conservative Party promises to increase the carbon tax if elected.
We agree with Ms. Donnelly that carbon taxes are not the be-all and end-all of climate policy. We just wish she would take a more even-handed, "academic" approach to the evidence.
-Mark Jaccard and Nic Rivers are with the School of Resource and Environmental Management at Simon Fraser University. David Keith directs the Institute for Sustainable Energy, Environment and Economy at the University of Calgary.
Link
And where is Norway on its Kyoto commitment after all that effort? 25% OVER 1990 levels, 30% OVER its target. What a pity, all that effort for nothing.Wherever tried, taxes failed environmentally
Aldyen Donnelly
Financial Post
Wednesday, November 21, 2007
In my article, I described the sorry history of carbon taxes around the world, with real-world examples of tax strategies that have failed to accomplish their environmental objectives, but harmed economies, especially the poor.
In theory, carbon taxes should be effective. But this theory does not translate into real life. If we continue to pretend otherwise, Canada will make the same costly mistakes that other nations are now working hard to dig out from under.
Mark Jaccard et al. praise Norway's carbon taxes, then say: Over "1990-2005, per-capita greenhouse-gas emissions increased 7.5% in Canada, but fell 0.4% in Norway." They should know that Norway's carbon taxes applied only to energy consumption and production, and that in these tax-targeted areas, Norway's per-capita emissions increased 18.4%, compared with 9.0% for Canada. Norway reduced emissions in not-carbon-taxed, non-energy areas.
Also generating the loss of 18% of manufacturing jobs since 1997, Norway's reductions derive from the shutdown of one magnesium plant in 2002, cutbacks in the forest-harvest and forest-products industries, and the upgrade of a state-controlled aluminum smelter. (Alcan completed a similar upgrade in Quebec around the same time, without a tax.)
Jaccard et al. say: "Norwegian per capita economic output grew 47% compared to Canada's 30%.," implying carbon taxes deserve some credit. In truth, Norway's economy grew by aggressively increasing production of fossil fuels. In 1990, oil and gas extraction activities accounted for 11% of Norway's gross domestic product. By 2005, oil and gas extraction accounted for 27% of Norway's GDP and government revenues (a large part from oil and gas rents) accounted for another 45%, while the economic contribution of all other value-adding sectors has declined. Norway's economy is less diversified and more dependent on global demand for fossil fuels today than it was in 1990.
Jaccard et al. extol the Sleipner CO2 injection project in Norway as "world leading." In truth, the EnCana CO2 injection project typically injects roughly 1.5 to 2 times more CO2 in Weyburn, Sask., without a carbon tax.
Jaccard et al. say I suggest "that carbon taxes and other regulatory policies cannot co-exist." I don't suggest that. In fact, the U.K. 2007 budget lists no less than 25 discrete greenhouse-gas control measures. The important question is: In the context of this long list of measures, what is the role and effect of the carbon tax?
Jaccard et al. imply that carbon taxes are popular in the United Kingdom. In truth, it was government's decision to freeze carbon taxes that is popular. What is the recent U.K. history? In 1993, as an energy conservation measure, the Thatcher government introduced the "duty fuel escalator," an automatic annual increase in duties on all fuels for all consumers (very similar to what Jaccard currently recommends). Then in 1999, a U.K. Treasury study that showed that fuel and car duties and value-added taxes had grown increasingly regressive, eating up over 14% of the disposable income of the U.K.'s poorest 10% of families and only 6% of the wealthiest families' incomes. In the same year, the lot of the poor had become so serious that the U.K. government launched the now essential "Fuel Poverty" program. In the 2000 U.K. budget, after massive fuel-price protests, then-chancellor Gordon Brown cancelled the duty fuel escalator, froze fuel duties, and lowered or eliminated the value-added tax on fuels and energy appliances.
After freezing fuel duties, the U.K. government introduced the not-carbon weighted Climate Change Levy (CCL), which applies only to energy consumed by manufacturers. In September, 2007, the U.K. Taxpayers Alliance's The Case Against Further Green Taxes found that "England's poorest region pays over 35% more [in climate-change levies] as a proportion of regional gross value added, than England's richest region." Since 1990, at least in part due to these experiments in carbon/energy taxation, U.K. manufacturing jobs have fallen 34%. The 2006 U.K. budget includes the chancellor's commitment to shift away from some of the more regressive consumption taxes. The 2007 U.K. budget reports, as a positive finding, that real U.K. fuel taxes are finally down to a new "low by historic standards."
Carbon taxes do not replace payroll taxes, as advertised. The U.K. government still relies on payroll taxes for 21% of government revenues, three times the Canadian government's rate of dependence. On Sept. 4, British newspapers reported "government raises £25.1-billion in fuel duties -- and gives back £254-million in lower vehicle excise duty for environmentally friendly cars and other projects, like wind turbines." British taxpayers are reasonably asking: Why are payroll taxes still so high in the face of massive manufacturing job losses and what are the implications of government's increasing dependence on highly regressive "green taxes" to fund health care and the now essential "Fuel Poverty" program?
-Aldyen Donnelly is president of WDA Consulting Inc. and of the Greenhouse Emissions Management Consortium.
Link
Respect is something that must be earned. Thus far you have failed to do that. As for your history, I have no idea what it is, nor do I care. It is completely irrelevant to the topic at hand.Try to stay on subject with actual examples as opposed to baseless assertions, I find your attitude exceptionally ignorant and disrespectful. Especially disrespectful given my history as a recovered drug addict.
You can devise formulas and plans all you want, but it will always hurt the poor. You could forcibly convert the economy to a marxist system with the purported goal of helping the poor but you would only hurt them, since without income earners, wage earners, entrepreneurs, corporations, there is no wealth generated that the poor benefit from. All those grandiose schemes to "help" the poor inevitably fail when confronted with reality.Given any demand distribution I can always create a new price schedule which will cost more money in total but save the poor money. Give me the poverty line and watch me set y = mx + b, so that for x small y is is smaller than current yet the integrated price is high. It is trivial when the previous cost schedule is constant, say k0. Your inability to see this reality in no way changes that fact. So here is some math for you.
Total energy cost = int(k0*f(x),x=0..x_max)=k0*f_average
where f(x) is the demand distribution ( f = number of people demanding x units), and f_average is the average demand
New total energy cost = int ((m*x+b)*f(x),x=0..x_max) = m*x_max^2*f(x') + b*f_average
for some x' in [0,x_max] by the mean value theorem.
Now we want m*x_pov+b < k0, so m*(x_pov+1)+b = k0 achieves this and m=(k0-b)/(x_pov+1)
So, new cost = (k0-b)/(x_pov+1)*x_max^2*f(x') + b*f_average > (k0-b)*x_max*f(x') +b*f_average = k0*x_max*f(x') + b*(f_average - f(x')*x_max)
We still have complete freedom to choose the price schedule and we are merely showing the existence of a single policy, so let b=0.
Then new cost > k0*x_max*f(x')
Since demand for electricity (in units of kilowatt hours) is always greater than the number of people demanding it (a person needs more than 1 kilowatt hour) , x_max > f_average in particular and multiplying by f(x') > 1 implies x_max*f(x') > f_average.
Thus we have shown that with m chosen as above and b equal to zero, the new price schedule will always satisfy
Total cost > k0*f_average = old cost.
The assumption being that demand for electricity is not heterogeneous to the cost of that electricity, which is false for electricity used to power luxuries but true for electricity used for necessities, which is all we care about in a welfare analysis in any case. My statement is nothing more than the fact that given a linear functional representing total cost of necessary electricity for price schedule, C[p], which maps L2 functions to real numbers and the domain of C_pov being less than C, and a previous cost schedule (L2 function) p, I can find a new function, p_new so that p_new < p for x < x_pov and C[p_new]>C[p]. The proof is trivial in the mathematical sense for x<x_pov, and a constant price outside of the domain of [0,x_pov] can be used with the mean value theorem to prove the second inequality.
This is nothing new. Anybody who knows what a "progressive" cost schedule actually is will understand the basic idea without needing to see such math. Give me the freedom to institute green energy policy and set the price of energy and I will save the poor money and simultaneously increase the cost. The fact that someone is ignorant of this reality doesn't make it less real and the fact that someone may be opposed to this reality does not make it impossible. Higher energy prices need not increase the cost of life for those below the poverty line.
I posted the following in another thread:
And the rebuttal which I added some emphasis to for your edification:
And where is Norway on its Kyoto commitment after all that effort? 25% OVER 1990 levels, 30% OVER its target. What a pity, all that effort for nothing.
Respect is something that must be earned. Thus far you have failed to do that. As for your history, I have no idea what it is, nor do I care. It is completely irrelevant to the topic at hand.
You can devise formulas and plans all you want, but it will always hurt the poor. You could forcibly convert the economy to a marxist system with the purported goal of helping the poor but you would only hurt them, since without income earners, wage earners, entrepreneurs, corporations, there is no wealth generated that the poor benefit from. All those grandiose schemes to "help" the poor inevitably fail when confronted with reality.