On a Proposed Carbon Tax

From a colleague:

In his interview with Vox, Bernie Sanders says, “Are the scientists right or are they wrong? If they are right they’re telling us that the planet Earth will be 5 to 10 degrees warmer by the end of this century Fahrenheit. That will cause cataclysmic changes in terms of drought, weather disturbances, rising sea levels, acidification of the ocean, and international conflict. If they are right — I believe they are right — we have got to move in a very, very bold way. We have to do it yesterday.”

“Sanders’s boldest move on climate change is his plan for a carbon tax. He has introduced legislation, alongside Sen. Barbara Boxer, that would put tax carbon emissions at $20 per ton. According to the Congressional Budget Office, the tax would generate about $1.2 trillion over 10 years. Sanders would rebate 60 percent of the revenue to consumers, use about 25 percent to pay down the debt, and pump the remainder into weatherization and clean energy programs.”

This is a bit trickier than most people (even someone very bright and committed like Sanders, whom I deeply admire) understand.  A carbon tax in the U.S., without some off-setting legislature in places like China, would raise the price of U.S.-made goods, and move that manufacturing off-shore.  There are numerous issues with this, but most obviously: a) we’re not anxious to lose more jobs here at home, and b) such products would be made with far dirtier energy than we have here.  It’s a lose-lose.

He needs a new plan.  I’m available by phone 24 hours a day for such a conversation.