The U.S.government's budget deficit problem will require tax increases to fix. We think carbon taxes are becoming the most politically acceptable alternative and expect them to be in place in 2010.
The political viability of carbon taxes stems from the broad and growing spectrum of groups concerned about global warming. This diverse group includes environmentalists (obviously), religious groups that view sustainability as a faith-based earth stewardship issue, and security advocates concerned about America's reliance on foreign oil.
Americans in general are also becoming much more sensitive to these issues, as shown by our recent post on increased interest in energy efficiency.
The New York Times article Climate Change Seen as Threat to US Security provides another example. The article describes work done by the Department of Defense showing that global warming security concerns have moved beyond foreign oil reliance to the broader topic of geopolitical impacts of climate change.
And according to DOD's analysis, climate change is going to cause a lot of geopolitical impacts:
"... over the next 20 to 30 years, vulnerable regions, particularly sub-Sahara Africa, the Middle East and South and Southeast Asia, will face the prospect of food shortages, water crises and catastrophic flooding driven by climate change that could demand an American humanitarian relief or military response."
As concensus on cleaner energy sources builds, there is also a growing realization that while the costs are high, they will have to paid. Key quote from retired Marine general Anthony Zinni:
“We will pay for this one way or another ... We will pay to reduce greenhouse gas emissions today, and we’ll have to take an economic hit of some kind. ... Or we will pay the price later in military terms,” he warned. “And that will involve human lives.”
The carbon tax debates are just starting. The House passed climate and energy legislation last June and it will be actively debated by the Senate in the fall.
While the final form and amounts are not clear, expect to see a carbon tax - probably in the form of a carbon cap and trade system - passed by Congress later this year.
Great read and informative, thanks. You’re right we don’t hear very much at all about the Greens Policies. I had no idea they didn’t recieve big biz political donations – good on them. This will be something I’ll be keeping strongly in mind when I head to the ballot box.
Posted by: Business Energy Australia | July 23, 2010 at 01:08 PM