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Author Topic: A carbon tax!  (Read 5059 times)

Max White

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A carbon tax!
« on: March 13, 2011, 12:39:09 am »

So for all you out there who just can not get enough of Australian politics (And what's not to love, amirite?) we may/will/should/could/won't/can't/are thinking about a carbon tax. Basically it means that you pay the government for each ton of CO2 you produce, somewhere between 20 and 30 dollars Au is likely. So... Good, bad, or just ugly?

Will this really help the environment? I mean unless it becomes more profitable for a company that burns fossil fuels to use green energy, then won't they just shrug their shoulders and and decide 'Well there goes some of our profit, but at least we aren't being forced into the even less appealing option of solar or wind! We could just pass our losses over to the consumer, and watch then squirm!' So is this a realistic option?

Do you have any sort of government control on greenhouse gas emissions where you are? How well does it work, if at all. Do you support the idea, or are against it?


Just as an interesting political foot note, the current PM Gillard, who is responsible for this tax, is being fried in the polls for breaking an election promise. It's not like breaking elections promises is anything new, look at Captain Rockstar Barrack Obama, what happened to the pulling troops out of Iraq? And in truth Gillard can't get the credit/blame when it was Bob Brown, leader of the greens party, who is twisting her arm, by getting this in exchange for he's parties support so that Labour can control both houses of parliament. However, the Liberal party is hammering this issue for the fact that this is a broken promise, rather then going that much into the effects of the tax, rather underhanded of them.

I for one welcome our new green overlords.

Angel Of Death

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Re: A carbon tax!
« Reply #1 on: March 13, 2011, 12:48:16 am »

Dosen't Australia only produce 0.1% of the worlds CO2?
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breadbocks

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Re: A carbon tax!
« Reply #2 on: March 13, 2011, 12:51:08 am »

Yeeeeah....  Australia really doesn't need this. America? Sure. But when I end up moving to Australia for a few years, I want to be able to say I lived in the most economically free country in the world.
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Realmfighter

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Re: A carbon tax!
« Reply #3 on: March 13, 2011, 12:52:26 am »

Dosen't Australia only produce 0.1% of the worlds CO2?
Australia has 21 million People out of an estimated 6.9 Billion for the world.

That doesn't really say much.
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Angel Of Death

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Re: A carbon tax!
« Reply #4 on: March 13, 2011, 12:59:31 am »

Yeeeeah....  Australia really doesn't need this. America? Sure. But when I end up moving to Australia for a few years, I want to be able to say I lived in the most economically free country in the world.

Agreed.
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Jackrabbit

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Re: A carbon tax!
« Reply #5 on: March 13, 2011, 01:01:10 am »

What with the amount of fires we have it's about time we started taxing that lazy-ass carbon.
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MarcAFK

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Re: A carbon tax!
« Reply #6 on: March 13, 2011, 01:16:46 am »

I would support a carbon tax but only if the money isn't wasted, which it will be.
If every cent of revenue was spent on investing in publicly owned utilities so that the government won't go bankrupt when we can't sell our coal/whatever anymore it might be good. er... whatever
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Ghills

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Re: A carbon tax!
« Reply #7 on: March 13, 2011, 01:17:12 am »

Carbon taxes are terrible, terrible things for a variety of social, psychological, political and economic reasons.

Carbon output is very hard to tie to anything a person does, which means they are likely to be (and be perceived as) arbitrary, or they impose tremendous regulatory burdens on everyone they effect. Which is a cost, and which therefore gets passed on to whomever the people being taxed can pass it on to, until the chain reaches someone who is too powerless to pass costs on.

Taxes always have some degree of arbitrariness, which is exacerbated with carbon taxes. Essentially a carbon tax is a tax on the natural by-products of a process, so not only do people feel like they are being charged for a natural right, they also feel that this charge is arbitrary and has no basis in their actions.  Carbon taxes also violate established principles (at least in my area) of natural resources not being scarce (and therefore, you can't charge people for breathing on your property, etc. You'd like me to be kidding, but this has been tried). Worse yet, it's not something that's clear and obvious, so people are going to perceive (reasonably, I think) the government as removing something from them for unacceptable reasons. I can't speak for the situation in Australia specifically, but I think at least some of the same reactions would apply.

Also, carbon taxes fall most heavily on the most fundamental aspects of the economy: temperate shelter, transportation (which directly effects employment and a worker's ability to fight harmful workplaces by leaving them, as well as a person's ability to feed themselves). This means that not only will these industries have higher costs and more disgruntled customers, investment in this field will also slow, which leaves the industry un-prepared for changes in market conditions. In extreme cases, owner can't or won't even do basic maintenance, which eventually shuts the entire industry down.  Since these industries are the really vital ones, the entire area gets hurt, even people who aren't direct customers of the companies being taxed.

A really extreme example of the effect of regulatory costs is what happened in New York City with rent control a few decades ago; regulators imposed costs on landowners, who promptly reduced their investment until they were making a sustainable profit (landlords need to live too; profits are what they live on. Sustainable profits for business are a good thing). It was a disaster for the city, which in some places still hasn't recovered.

The scientific case for man-made climate change is shaky at best - seriously, there is good science and terrible science on both sides of the equation. We haven't been getting good quality data, in many cases we haven't had a chance to look at the models that analyzed that data, there's been very little debate of facts and a lot of idealistic hogwash spread by everyone involved. Any politician who picks a side on this argument is taking a real risk that they're choosing incorrectly, and they're almost certain to get a huge pushback from the people who disagree with them. It's one reason I'm encouraged by the 'sustainability' trend. Sure, a lot of stuff that goes in the name of sustainability is man-made global warming in a new suit, but there is a growing focus on wiser resource use instead of a monomaniacal focus on a theology.

Carbon taxes fit the world-is-frying ideology of global warming, but don't address realities of life for people trying to make good choices and provide for their selves and families. They're practically made to be a topic of political backbiting, but they aren't an actual solution for any problem, and they will cause several new problems that aren't being addressed in any proposals I've seen so far.  There are ways to address the issue of climate change (which is doubtless happening; the earth's climate changes all the time, and has a natural cycle that does result in significant shifts in biomes and habitats) that take the focus off controlling something we actually don't have a lot of control over (ie, the earth's atmosphere and weather system) and put it on things we can control (ex: efficient transportation, better use of distributed farming. tons of stuff).

tl;dr  Carbon taxes are dumb shortcuts for lazy politicians. They're a terrible idea thought up by people who want to force others to make hard decisions while they get applause.
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mainiac

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Re: A carbon tax!
« Reply #8 on: March 13, 2011, 01:36:50 am »

Carbon tax isn't as good as cap and trade at addressing the problem but it's not bad.  We are at the point technologically where solar power is about even with coal power in terms of cost effectiveness, but businesses need a kick in the pants to actually want to adopt the new technology.  With any change, there is an entrenched interest that objects.  However the need is obvious.  People who say that climate change is a myth or is questionable have buried their heads in the sands.  The evidence is overwhelming, it's only a question of degree.
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Ghills

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Re: A carbon tax!
« Reply #9 on: March 13, 2011, 01:58:58 am »

1) Solar power is not anywhere close to the same cost-effectiveness for people who don't live in a very, very sunny area.

2) Capital costs are nothing to sneer at. You wouldn't want to have to build a new home whenever the building code changes either.

3) As I said, there is no doubt that the earth's climate is changing, just like it's always been and always will be. What is causing that change and what it will change to are questions we simply can't answer right now.

I stand by my description of carbon taxes. Cap and trade is only slightly better, in that it increases the number of people now in a position to take advantage of the new government-granted market structure.
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mainiac

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Re: A carbon tax!
« Reply #10 on: March 13, 2011, 02:19:57 am »

1) Solar power is not anywhere close to the same cost-effectiveness for people who don't live in a very, very sunny area.

Solar power is roughly equal to coal (and ahead of nuclear) including the cost of finance.  I can tell you this as a certified solar panel installer and my best friend can confirm this as someone who has worked for one of the largest energy trading firms on the east coast and has seen their cost evaluations over time.  Five years ago, solar wasn't competitive with coal outside of niche roles.  At this very moment, right now, solar is reaching the point where it is competitive with coal in major markets.

But there's a catch, there are large, powerful utilities that control the energy market and they have no interest in having their existing capacity shut down.  They want to keep their plants going and they have scales of efficiency on their side.  So we need a kick to raise the price of coal power by 30% or so.  That means that the big utilities can't fight it anymore, or they will lose their market share to new utilities.

And that would be a fantastic thing.  Our economy sucks right now because nobody is investing.  Know what would be a great investment?  Putting up solar panels all across the country.  It would save money in the long run and put us to work right now.
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breadbocks

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Re: A carbon tax!
« Reply #11 on: March 13, 2011, 03:04:00 am »

Solar power is roughly equal to coal (and ahead of nuclear) including the cost of finance.  I can tell you this as a certified solar panel installer and my best friend can confirm this as someone who has worked for one of the largest energy trading firms on the east coast and has seen their cost evaluations over time.  Five years ago, solar wasn't competitive with coal outside of niche roles.  At this very moment, right now, solar is reaching the point where it is competitive with coal in major markets.

But there's a catch, there are large, powerful utilities that control the energy market and they have no interest in having their existing capacity shut down.  They want to keep their plants going and they have scales of efficiency on their side.  So we need a kick to raise the price of coal power by 30% or so.  That means that the big utilities can't fight it anymore, or they will lose their market share to new utilities.
That argument is utter bullshit. First, "About even" != coal needing a 30% price increase to be the same price. And it is nowhere near as cost effective. Think space man. The same land that we need crops to grow on and live on have to be taken up in huge swaths at a time to equal the same output as a coal plant.
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Max White

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Re: A carbon tax!
« Reply #12 on: March 13, 2011, 03:14:48 am »

So, while now might not be the best time to bring it up, what with Japan and all, Nuclear.

Or coarse then leads me to wonder how much CO2 is required to dig the stuff out of the ground, refine it, transport it, and any other side costs for emissions involved. And IIRC it takes about 25 years to construct the plant.

So this isn't just Coal Vs. Green, nuclear is there too.
Taxes always have some degree of arbitrariness, which is exacerbated with carbon taxes. Essentially a carbon tax is a tax on the natural by-products of a process, so not only do people feel like they are being charged for a natural right, they also feel that this charge is arbitrary and has no basis in their actions.  Carbon taxes also violate established principles (at least in my area) of natural resources not being scarce (and therefore, you can't charge people for breathing on your property, etc. You'd like me to be kidding, but this has been tried). Worse yet, it's not something that's clear and obvious, so people are going to perceive (reasonably, I think) the government as removing something from them for unacceptable reasons. I can't speak for the situation in Australia specifically, but I think at least some of the same reactions would apply.

Whoa there buddy, this isn't exactly a window tax. If a company was polluting into the sea, I would tell them to stop that shit. If they then explained why this was the safest way of deposing of a chemical that was a by product of producing a rather important good, I would ask them to do the best they could to minimise dumping into the sea, and throw a tax at them to encourage it. The atmosphere is the same deal. Polluting is not in any way shape or form a right.

Ghills

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Re: A carbon tax!
« Reply #13 on: March 13, 2011, 03:37:50 am »

1) Solar power is not anywhere close to the same cost-effectiveness for people who don't live in a very, very sunny area.

Solar power is roughly equal to coal (and ahead of nuclear) including the cost of finance.  I can tell you this as a certified solar panel installer and my best friend can confirm this as someone who has worked for one of the largest energy trading firms on the east coast and has seen their cost evaluations over time.  Five years ago, solar wasn't competitive with coal outside of niche roles.  At this very moment, right now, solar is reaching the point where it is competitive with coal in major markets.

But there's a catch, there are large, powerful utilities that control the energy market and they have no interest in having their existing capacity shut down.  They want to keep their plants going and they have scales of efficiency on their side.  So we need a kick to raise the price of coal power by 30% or so.  That means that the big utilities can't fight it anymore, or they will lose their market share to new utilities.

And that would be a fantastic thing.  Our economy sucks right now because nobody is investing.  Know what would be a great investment?  Putting up solar panels all across the country.  It would save money in the long run and put us to work right now.

1) Your livelihood depends on solar panels being a desirable commodity. That means that you are at least unconsciously biased in favor of them, and may well find them ideologically attractive, which isn't a help to your creditability. Sorry, but that hurts your argument.

 2) Current solar is heavily subsidized by government at several points. It is cost-effective currently in a $/watt consideration, including government subsidies, over a long period of time. That doesn't count the unpredictability of it which makes it much more expensive and perhaps completely unfeasible as a part of infrastructure. It also doesn't count the true market cost of it, and the fact that the US governments are penniless makes rebates much less attractive.
2a) Solar power does not work 100% of the time and isn't very predictable, and battery technology isn't to the point where that's a cost-effective way to make up the difference. Same problems apply to wind. Geothermal has completely different issues, and I think is something worth looking into because it can be a very stable source of power (although capital costs can be higher). You're really underestimating the importance of reliability for infrastructure in general, and electric infrastructure in particular, and how the lack of reliability raises the cost of solar power.

3) Building new things takes money, and time, and space, as breadbocks has pointed out. It's part of the reason I'm opposed to corn ethanol, because it causes an artificial food shortage when millions of people go hungry every day (it also takes more energy to produce a gallon of corn ethanol than the gallon contains, and I object to giving more power to an already incredibly powerful lobby that has done very selfish things, but those aren't sustainability related).  Solar is only cost-effective if it's the same cost, not if it's the same cost in 10 years after all of the capital investments have been fully earned out. Capital projects cost money. Most people and businesses still can't afford it, or don't live in situations and places where it's a technologically and financially feasible option.

4) You're totally right that utilities have a lot of power (yes, that's a pun). And they'll use that power for renewable energy the second it becomes a better option than coal or gas. Natural gas is being adopted where it's a better option. Solar is being adopted in the circumstances where it's a better option, wind is in the limited circumstances where it works, and I think we need to give geothermal another look, but that's also growing. Powerful companies are not something that needs to be stopped at all costs; they aren't the enemy. The enemy is making irrational decisions that aren't based on reality. Powerful companies will throw their power behind something as soon as it makes financial sense. The fact that some companies don't throw their power behind a certain initiative suggests that some things about it don't make financial sense, and that's worth more of an exploration than "Evil company! Regulate!"

5) No, forcing people to invest if ideologically driven initiatives is never good for an economy.  All forced investments are funded by money removed from a more efficient use to a less efficient use. Letting people choose where to invest their money is the best way to get rational, effective progress.

6) The US economy is severely hurt right now, for more and deeper reasons than a lack of investment, which I would argue is happening, simply not in the areas of the market that pundits like to look at. One factor for lack of traditional investment is uncertainty, which raises whenever the government intervenes. More government intervention will raise uncertainty and lower investment, because government doesn't intervene based on economically rational motives and thus isn't predictable like businesses and consumers. This isn't a new phenomenon; it's something that's fairly well known.

So this isn't just Coal Vs. Green, nuclear is there too.
Taxes always have some degree of arbitrariness, which is exacerbated with carbon taxes. Essentially a carbon tax is a tax on the natural by-products of a process, so not only do people feel like they are being charged for a natural right, they also feel that this charge is arbitrary and has no basis in their actions.  Carbon taxes also violate established principles (at least in my area) of natural resources not being scarce (and therefore, you can't charge people for breathing on your property, etc. You'd like me to be kidding, but this has been tried). Worse yet, it's not something that's clear and obvious, so people are going to perceive (reasonably, I think) the government as removing something from them for unacceptable reasons. I can't speak for the situation in Australia specifically, but I think at least some of the same reactions would apply.

Whoa there buddy, this isn't exactly a window tax. If a company was polluting into the sea, I would tell them to stop that shit. If they then explained why this was the safest way of deposing of a chemical that was a by product of producing a rather important good, I would ask them to do the best they could to minimise dumping into the sea, and throw a tax at them to encourage it. The atmosphere is the same deal. Polluting is not in any way shape or form a right.

Polluting as you've used it is a nonsense term. If you mean disregarding natural laws and treating the earth as an infinite resource, I agree that this shouldn't occur. That's also completely irrelevant to what I was saying.

If you mean, putting something unnatural into a place that can't handle it effectively through natural processes, I'm going to laugh. Carbon, methane and similar chemicals are natural substances, which can be dealt with by natural processes. They're supposed to be in the atmosphere to keep the earth livable. We may be dumping too much at one time, but we don't know what effect that has on a system as complex as the earth's, and we don't know that the climate is even changing permanently or if this is simply nature's RNG throwing some wild years, or if there's solar activity which is causing changes... We don't understand the earth's climate and we're trying to control it. That's short-sighted and childish.

What I said was that carbon taxes try to enforce a tenuous link that is not easily apparent or easily provable, and that it imposes a burden on using something that is and should be free from economic scarcity to prevent abuses by the powerful, because if it's considered a scarce resource someone will start trying to charge people for it. In fact, the government is right now.

EDIT: For grammar, to put 'easily' in front of 'provable' and clarify my point about people manipulating access to vital resources.
« Last Edit: March 13, 2011, 03:55:27 am by Ghills »
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Nadaka

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Re: A carbon tax!
« Reply #14 on: March 13, 2011, 03:51:30 am »

You don't put solar power on farmland. You put it in the middle of the desert or on otherwise unused rooftops. You could meet more 100% of the human populations energy needs with solar power taking up a tiny percentage of the most desolate deserts on earth.

Solar thermal power production with a heat reservoir solves the problem of intermittent power supply for industrial scale power production. A sufficient thermal mass produces energy 24/7, evening out overnight and the occasional cloudy day. The only real threat to solar thermal power is extreme weather such as wind, snowfall or hail heavy enough to damage the reflectors. And in those cases it should be possible to keep the boilers fired using a backup system of burning natural gas or hydrogen from electrolysis. It is far, far more reliable than wind.
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