Sunday, February 28, 2010

Why do we need GREEN TAX?

The main purpose of energy or carbon taxes cited by its proponents is to reduce CO2 emissions and to respond to concerns about climate change and global warming. Of the nearly 22 billion tons of carbon dioxide released into the atmosphere worldwide every year, one forth is generated by the United States, with only 4 percent of the world population, as a change in policy in this one country, even if other nations do not go along, would have great benefit. There are many other advantages as well. A Study of the economics of Japan, the US, the erstwhile U.S.S.R and the E.E.C. in the period of 1976 to 1990 showed that economic performance was directly correlated with energy prices. The more costly the price of resources, as in the case of Japan, the greater the technological innovations and economic growth. On the other hand, where energy and resources were subsidized and below market value, as they were in Soviet Union, economic growth and innovation lagged significantly higher levels than the U.S, but not as high as the Japanese. This correlation should come as no surprise, since it is higher prices that goods and urge companies and individuals toward better design and more efficient technologies and systems


While carbon taxes will initially lower CO2 emissions by greatly increasing energy efficiency, their ultimate purpose is to the replacement of carboniferous fuels with sustainable, clean burning energy sources that do not vitiate the dynamics of our atmosphere and climate. The timing of the imposition of the tax is one of the foremost  concerns about it. If the taxes on energy go up overnight ( as they did, in effect during the oil embargo of 1973), they cause inflation, dislocation and chaos. But if green taxes on energy should gradually rise to the level where it is less expensive for individuals and industry to rely on alternatives to carbon based fuel. Wind, water and solar radiation provide permanent sources of energy, and they will always be available, while coal, oil, and gas in finite supply. Fossil fuels are useful but too damaging to be squandered out of exhaust pipes and Smoke stakes. Furthermore, they give us a false and deceptive view of our carrying capacity with respect to the environment. No business in the world can longer survive on its capital reserves. Every businessperson understands this, yet many ignore the fact that this same principle applies equally to energy and environment: No culture will long survive drawing downs its energy capital, and so any worthwhile green tax will eventually halt the depletion of the world's resources. The task in energy, as in food, clothing, and shelter is to create an economy that lives off of current income, not capital resources. Thus, the purpose of green taxes is to raise the economic stakes to the level where we cannot afford to live off of capital - where it simply becomes prohibitively expensive to deforest, degrade or destroy the environment.

Although we cannot or need not capture all the energy that arrives every day from the sun, we can harness more than enough to meet our present and foreseeable needs, as long as those needs do not continue to involve a runaway, frenetic world of cars, planes, commuting, and travel. Relying on solar energy does not eliminate all waste, but it eliminates the bulk of CO2 buildup in the atmosphere, as well as most of the smog and air pollution. Solar energy does not pollute, does not cause asthma and emphysema in the L.A basin, does not acid rain, does not run aground and spill into the ocean, does not seep into groundwater, pollute rivers, or create Super-fund sites. These and your gas, turn on your heater, even buy your food. By relying upon an that more people can have more things, we will absolutely create a world where we will have less and less, and imbalance between rice and poor will continue to grow more pronounced and inequitable. 


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