Sunday, November 18, 2012

Growing interest in carbon tax could improve the Outlook for renewable energy.

Sunday, November 18, 2012
Conservative economists and fossil lobbyists combines a year to fend off 2009 climate change legislation, which would have introduced a CAP-and-trade mechanism. They are locked now in a backroom debate on a tax on CO2 emissions, which could raise an estimated $100 billion in the first year.
A CO2 tax would force to pay a fee for the greenhouse gases generators, refineries and manufacturers that emit them. It gains interest as lawmakers and President Barack Obama agree that the corporate tax code to simplify and try to restrict the revenue to the deficit. The destruction of Superstorm Sandy to the fires and the drought of this summer also have increased concern about global warming.

"It fits with the Republican idea of cleaning of the tax code, and have a clean instrument for dealing with this problem," said John Reilly, Co Director of the Massachusetts Institute of technology joint program on the science and policy of global change, in an interview. In the face of this year's weather disasters, "it's hard to stand up and say that global warming is a hoax," he said.
Gilbert E. Metcalf, Deputy Assistant Treasury Secretary for the environment, energy, said this week no CO2 tax was that the Administration is planning to propose, though, "Part of the mix" could be an overhaul of tax according to the Hill newspaper. Asked yesterday, Obama said that he doubted that enough political agreement for the tax, although he warned the delay in the fight against of global warming.

Storm costs

"It is important, because, you know, one of the things the we not always factor into the cost of these natural disasters," Obama said at a White House Press Conference. "We only she pushed for our behavior as something."

The Washington-based American Enterprise Institute (AEI), which States that the favour of libertarian and conservative values, instead of a full-day discussion of November 13 to to check how a CO2 tax to implement that economists might say allow from regulation by the environmental protection agency a lowering of corporate taxes and head. On the same day filed a opponent of the idea, which would be said competitive Enterprise Institute (CEI), a lawsuit against the Treasury Department, seeking private emails show that the Government is secretly pushing for a CO2 tax.
"they need new sources of revenue, and this is a nice," Chris Horner, senior fellow at the Washington-based CEI, said in an interview. "This thing is gaining steam."

Environmentalists support

Environmentalists how environmental wants Defense Fund and former Vice President Al Gore say control greenhouse gas emissions, it is the best way to curb the use of fossil fuels such as coal and oil, cleaner energy sources such as wind power and energy efficiency. The idea was also support for the economists who have worked for the Republican Governments, including Kevin Hassett, also at the AEI, and Gregory Mankiw, an economist at Harvard University.

Exxon, the legislation in 2009, which limits CO2 emissions and allows an auction would act, said at the time that a CO2 tax would be easier to implement and more predictable.

Exxon posts

"In combination with further progress in energy efficiency and new technologies, spurred by market innovations a well-thought-out CO2 tax in dealing with the problem of rising emissions play an important role could be," said Kimberly Brasington, a spokeswoman for the company, in an E-mail. "A CO2 tax revenue should be made neutral about tax offsets in other areas," she added.

Exxon political action Committee announced millions of political candidates in the last two years 93 percent $1.2 almost of Republicans, according to the Center for responsive politics.

Exxon is the largest U.S. natural gas producer. A CO2 tax could demand for natural gas in the U.S. power plants, boost, such as gas as coal for electricity make half carbon dioxide emitted.
"Is the source of most coal", David Kreutzer, researcher in the energy sector at the Heritage Foundation in Washington, said that against the tax in an interview. "The biggest replacement for coal will be natural gas."

Taxes on greenhouse gas emissions would help convoluted corporate tax to finance an overhaul of the code and is a better way, the address global warming as regulations from the EPO by Aparna Mathur, an economist at AEI.

Carbon Conference

Exxon, the world's largest energy company by market value, $295.000 last year gave AEI. Exxon in the Mathur, research or the session played no role, she said.

Some say Mr Mathur of the scholars at the think tank in Washington a new tax is a mistake, and the Conservatives are always cheated to think it would take the place of the imposed - not in addition to - other taxes and rules.

"Conservatives are completely naive to believe that they get compromises in response to a CO2 tax," said Kenneth Green, as a resident scholar at the AEI, in an interview. "Some rugged, we have had discussions about the lunch about our differences."

Tax revenues

CO2 emissions since the industrial revolution caused warming of the Earth's temperature, to extreme weather, drought and coastal flooding, according to the global change program to create research threatens US. Taxation would trigger more than $100 billion in the first year, according to a study by a ton of carbon dioxide at $20 Mathur this week presented.

Mathur, said that she will support any CO2 tax in the abstract. She said it is better than EPA regulation and studied how it could best be implemented.

National Journal reported that Grover Norquist, President of Americans for tax reform, said he favors a CO2 tax, Exxon does just what said is necessary to compensate for the revenue increases with other tax cuts. The next day, Norquist issued a statement clarifying his remark, saying that the new tax "would lead to higher taxes."
"In the real world, it is not conceivable," that the revenues from a carbon tax would be associated by reductions in other taxes, Norquist said in an interview. It would mean "higher taxes on short and long term."

Other opponents of the CAP-and-trade remain skeptical that a CO2 tax.

Opponents plan

National Mining Association, which represents coal producers such as Peabody Energy Corp., is aimed against "unique as it would damage that growth," said Luke Popovich, a spokesman, in an E-mail. It is a regressive tax that "heavily on the least able to afford would fall."

And even the environmentalists are skeptical the before and cons main table, Congress to approve any legislation. Obama of regulatory efforts bear fruit, and that should not be thrown away, they say.
"You hear lots of talk about a CO2 tax," Ann said senior counsel the weeks, clean air task force in Boston, in an interview. "But EPA regulatory front so much has progressed," she said. "I hope that they it cannot fall for the promise of something else."

Copyright 2012 Bloomberg.
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