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Is a Carbon Tax Really the answer?. Bruce M. Everett February 28, 2013. Global CO 2 Emissions from Energy 1990 = 22 Billion tonnes. Rest of the World. OECD Europe. China. US. Source: Energy Information Administration. Global CO 2 Emissions from Energy 2013 = 33 Billion tonnes. - PowerPoint PPT Presentation
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Is a Carbon Tax Really the answer?
Bruce M. EverettFebruary 28, 2013
OECD Europe
US
Global CO2 Emissions from Energy1990 = 22 Billion tonnes
China
Source: Energy Information Administration
Rest of the World
Global CO2 Emissions from Energy2013 = 33 Billion tonnes
Source: Energy Information Administration
Global CO2 Emissions from Energy1990 = 22 Billion tonnes
Source: Energy Information Administration
OECD Europe
US
China
Global CO2 Emissions from Energy2013 = 33 Billion tonnes
Source: Energy Information Administration
Rest of the World
Global CO2 Emissions from Energy2035 = 43 Billion tonnes
Source: Energy Information Administration
Global CO2 Emissions from Energy2013 = 33 Billion tonnes
Source: Energy Information Administration
OECD Europe
US
China
Global CO2 Emissions from Energy2035 = 43 Billion tonnes
Rest of the World
Source: Energy Information Administration
Series10
5,000
10,000
15,000
20,000
25,000
Energy intensity (Btu per $2005 of GDP)
1990 2011 2035
US
China
Global CO2 Emissions from Energy2035 = 43 Billion tonnes
OECD Europe
US
China
Rest of the World
51 mpg $?
Biofuels$320 B
Wind$200 B
Electric Cars$60 B
Solar$200 B
2%A $trillion worth of policy
Wind
Solar
Source: Energy Information Administration
Global CO2 Emissions from Energy2035 = 43 Billion tonnes
OECD Europe
US
China
Rest of the World
Wind
Solar
2% Nuclear
In 2035, China and India are projected to emit this much
CO2 from coal.
After 80 years and $1 trillion in subsidies, the global solar
industry will offset this much.
The average American household emits about 50 metric tonnes of CO2
annually.
How big should the carbon tax be?
If you want:You need a tax of
(per tonne)Costing each family
(annually)
Onshore wind $170 $8,500
Offshore wind $570 $28,500
Electric cars $600 $30,000
Solar PV (home) $790 $39,500
Light rail $10,000 $500,000
How big should the carbon tax be?
The current European carbon price: $6/tonneThe current CDM price:$1/tonneUS RGGI price: $2/tonne
“Sin” taxes are levied not to eliminate sin, but to raise revenue ($40 billion in 2010).
Prediction: Carbon taxes will be structured for revenue, not carbon reduction.
The key problems with a carbon tax:
1. Real CO2 emission reductions have unacceptable economic consequences.
2. US carbon emissions no longer matter.
