Climate change the hot topic at next Badger Club meeting

What should we do about climate change will be the topic of discussion at the July 27 Badger Club forum. There are some, of course, who say we should do nothing. But this position is becoming increasingly untenable in the light of evidence that the adverse effects of climate change (increasing surface temperatures, increased frequency of coastal flooding, ocean acidification, etc.) are serious and already occurring.

These changes are being driven by emissions of greenhouse gases and particles from human activities. The traditional method of attacking this kind of problem is to reduce the emissions causing it through regulation. But this approach is inherently bureaucratic, time-consuming and contentious. And it can be economically inefficient. Regulations may mandate technical fixes and approaches that are inflexible, ineffective, and overly expensive.

So here is the question: Can dealing with climate change lead to new approaches that will enable us to deal with this problem more efficiently and effectively?

Since all climate-affecting chemicals are carbon-based, one way to do it is to put a price on emissions through a tax based on their carbon content. This is the approach most favored by economists, especially if such a tax promotes technological innovation and efficient allocation of resources for achieving the goal. Such a tax must reflect the true social cost of emitting a pollutant to the environment; otherwise it is just another way to raise revenue.

The long-term objective of a carbon tax should be to reduce net carbon emissions (emissions minus natural or man-made atmospheric carbon removal processes) to zero. Achieving this goal will take decades, and as long as net emissions are positive, greenhouse gas concentrations will continue to increase and the climate will continue to change. And although this goal must be met globally, it will take individual countries and states to take the lead and show the way.

To be effective, a carbon tax to address climate change would have to start out relatively low in order to minimize economic disruption, but it would have to increase over time in order to provide the economic signal needed to develop and implement the kinds of technologies and infrastructure that would phase out carbon-based energy.

But what to do with the revenues generated by such a tax? There are several options:

▪  Use them to reduce other taxes. (But which ones, and how do you prevent a carbon tax from becoming just another source of revenue?)

▪  Use them to subsidize development of new carbon-free technologies. (But who chooses the winners and losers and why?)

▪  Return the revenues to affected consumers via direct payments to individuals. (Many economists favor this approach because it is efficient and helps cushion consumers from the increased cost of fossil fuels.)

Then there are issues of achievability and equity. Even though transition to a carbon-free economy would have long-term economic and environmental benefits, there would be winners and losers. For example, going carbon-free will be easier for ground transportation than for air transport. And countries that take action to reduce carbon emissions must adopt measures to protect their economies from those that don’t. Also, a carbon tax is a consumption tax and inherently regressive. Until lower-cost, carbon-free energy alternatives become widely available, a carbon tax will fall more heavily on those with lower incomes and on those who may find it more difficult to reduce their consumption of liquid fuels. This problem must also be addressed.

Carbon taxes have been proposed as an economically efficient way to reduce greenhouse emissions. But to be effective in stopping climate change, they must be sustained and they must increase predictably over time until the goal of zero net carbon emissions is obtained.

This coming Thursday provides an opportunity to explore this topic more in-depth with speakers that represent the state’s business sectors, organizations that support a state carbon tax, and public policy advocates.

After the formal presentation, there will be a 30-minute question-answer period, where we hope to explore the topic from a local, national, and global perspective. Please remember that to ask a question, you must be a member of the Badger Club, and it is possible to join at the forum.

The Columbia Basin Badger Club is a nonpartisan Tri-City organization that is dedicated to civil discourse on topics important to our region.

This story was originally published July 22, 2017 at 10:55 AM with the headline "Climate change the hot topic at next Badger Club meeting."