Reduing Carbon Emissions With Sound Policy
On a daily basis I read with amusement suggestions for “command and control” tactics to reduce carbon emissions in the letters section of the local newspaper. The problems with every one of these solutions are that the author, or central planners they would choose, do not have the information about how each individual, family, business, etc. and how the interaction between them will play out.
I propose a simpler solution:
- eliminate every single regulation, building code, publicly funded energy reduction program, and subsidy designed to reduce carbon emissions or conserve energy.
- tax every ounce of carbon emitted at a high enough rate that people and business in aggregate emit the desired amount and no more. Reduce taxes elsewhere to be revenue neutral.
- deregulate the price of electricity and all other energy sources (in BC), or tax it as if it were produced by coal, because at the margin, every kWh used in BC means someone somewhere else in North America is burning coal to generate electricity.
- No special treatment/tax reductions for certain businesses, sectors, seniors, children, families, etc. Those who cannot afford to heat their home are a separate problem the welfare state can address with increased welfare payments.
Programs like EnergyStar will become private certifications, because the market will demand them. People and businesses can make decisions in their own interest. The economy will self-organize and produce a much better result than various levels of government deciding what kind of car your family should drive and who gets to emit how much carbon. The economic incentive to reduce energy use will be much greater.
Any carbon reduction is going to result in a lower standard of living, regardless of how its implemented. Lower profits, lower salaries and incomes on the production side, and greater expenses for the goods and services we buy as consumers. This will be reflected in our behavior as consumers, and the government will have less funding available for things like health care and all the other good programs we like them to provide.
If we are to reduce carbon emissions, I would much rather have a choice of how to heat my house, what kind of car I should drive (if any), Christmas tree I should buy, or leave my computer on all day than have the government decide for me.