Considering that the last administration treated global warming as a dubious, economy-killing figment of liberals’ imaginations, the climate change bill now winding through Congress (having been goaded into fruition by President Obama) is a welcome dose of reality to environmentalists.
The ideal piece of legislation would find a way to put a price on greenhouse gas emissions—either by taxing a harmful activity or by making the price reflect the full market value once the amount of pollution on the globe is factored into production costs. The incentive would be to invest in less harmful forms of energy, whereby doing the right thing would not be cost-inhibitive. Mass producing renewable energy is more expensive in the short run simply because the technology is newer and more inefficient than it would be had we more extensively conducted research and development over the past few decades.
But simply making fossil fuel energy suddenly more expensive because the social costs are being factored in for the first time is not an effective argument to make to a country that is suffering from a recession, treats higher taxes as political poison, and has deeply entrenched coal and oil interests. That latter point has been made abundantly clear, as 85 percent of allowances to pollute that are supposed to be auctioned off under a cap-and-trade system (which reduced sulfur dioxide levels when enacted in the 1990s) will be given away to the energy industries. Plus, the target of reduction has been moved to 17 percent of 2005 levels, versus 20 percent, to occur in 2020—a compromise that Rep. Rick Boucher (D-VA) helped bring about to assist the coal companies of Virginia.

I do worry a little about the effect of carbon caps on industries, as companies could face higher operational costs that would cause worker layoffs. However, I would hope that the same congressmen who are seeking to protect the employers/campaign contributors of their constituencies would be stumbling over themselves to pass policies that promote the creation of new R&D for and operation of renewable energy industries in their districts. That is why I wonder if tax rebates to consumers to counter higher energy costs imposed on fossil-fuel based companies under new regulation would have any promotional effect for cleaner energy. If companies can raise rates to pay the government, then the government compensates consumers, all that occurs is a meaningless transfer of wealth, no?
The bill needs strict, funded mandates—governors should develop plans to derive at least 17 percent of their state’s energy from renewable sources by 2020, with the ability to apply for federal grants to in-state start-up firms. Once sufficient alternatives to fossil fuel energy become available, consumers ought not to be shielded from the higher costs of pollution. In fact, while the idea is not to harm poorer people by increasing their energy costs (if anything, rebates should only be handed out to those qualified for Medicaid, Medicare, or unemployment insurance), middle and upper-class people should be goaded into reducing their energy usage. Advertising campaigns about turning off lights and using less water are cute, but they are also true. Not all energy-saving methods are as grand as buying a hybrid; simply doing the little things, and doing them often, will add up.
The excuse given for why high reductions cannot occur quickly is that it is questionable whether the growing industrial economies of India and China will also comply with global emissions requirements, giving them an unfair advantage in production if they do not. Yet China has already has already asked the U.S. to make much more earnest requirements in order to take climate change proposals seriously, so why not engage them on the matter? They are our vital negotiating partner on North Korea and economic stabilization, and as long as the world economy is retooling, their role should be defined as well.
That something must be done to curb harmful greenhouse emissions is not only realistic, but it is also something this Congress has thankfully been willing to address. Unfortunately, they have masked short term commitment by claiming to protect their constituents, but in reality handing over the keys to the fossil fuel industries. True enough, by 2050 83 percent of emissions are supposed to have been cut. But long term goals are useless if politicians aren’t willing to make short term commitments. Perhaps once the renewable energy lobby gains enough clout, then serious change will occur.



