Wednesday, June 16, 2010

How reducing our carbon increases carbon

Given that China and India refuse to commit to reduce their carbon output, I will lay out the case for you that any such caps we place on ourselves in the U.S. will actually INCREASE carbon out put overall.

Our Cap in Tax schemes will drive up the cost of energy which will in turn drive up the cost to make things. This is because to make things, you need energy which will cost more. If you can sell an item for the same amount of money, but pay less to make it...say by moving your production to a place that costs less to make an item, like China or India, if you have the means you will do so. These companies will not only save on energy, but also production as they can pay their workers less money for the same output. Your overhead will go down, your sale price can remain the same giving you more profit, which is desirable for a company.

Given that China and India have lower environmental controls than we do (which is self-evident) it is also highly likely that at least some of the companies that move will operate their productions to skimp on the cleanliness of their operations in order to save money which will put more pollution and carbon into the air. More carbon than if they had been incentivised to remain in the U.S. with our higher environmental standards.

So in conclusion, if you insist on introducing more Cap and Trade style taxations and drive up the cost of energy, and believe that man made carbon is killing the planet, you are killing the planet with Cap and Trade style taxations.

No comments:

Post a Comment