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Author Topic: Carbon Fee & Dividend Plan  (Read 25441 times)

rboyd

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Re: Carbon Fee & Dividend Plan
« Reply #150 on: March 13, 2017, 10:47:12 PM »
Make it a $100 per ton and dividend it back on a per capita basis, a huge "middle and working class tax cut". Should also have a surcharge for extra-heavy personal users - personal yachts, rolls royces, first class airline passengers etc. Would add a good bit of "populism", if only Bernie had led with that!

This would greatly increase the cost of long supply chains, forcing some activities to be done much closer to the point of final constriction/consumption - relocalization and "bringing the jobs home". How can this not be a winning proposition if sold correctly?!
« Last Edit: March 14, 2017, 05:09:20 AM by rboyd »

ghoti

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Re: Carbon Fee & Dividend Plan
« Reply #151 on: April 04, 2017, 05:52:42 AM »
Ontario just completed their first carbon credit auction for their Cap & Trade system. They raised $472 million CDN with all available credits sold. Reserve price was $18 and the final median price was about $19 per credit.

By law all proceeds must be used on carbon mitigation programs. There will be 4 auctions each year.

Not all businesses need to buy credits because for the first few years vulnerable industries receive free credits. The list of companies buying credits reads like a who's who of the fossil fuel industry plus a few municipalities (who I guess own fossil fuel powered generators).

rboyd

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Re: Carbon Fee & Dividend Plan
« Reply #152 on: April 04, 2017, 04:47:18 PM »
Ontario's electricity generation is already very clean - no coal and only 6.7% natural gas. A lot of natural gas used for space heating though (unlike Quebec which uses hydro-electricity for this - shame Ontario not driving faster to do this), as well as all those ICE's propelling people and stuff around.

https://www.ontarioenergyreport.ca/pdfs/5924_IESO_Q2OER2016_Electricity.pdf

The Cap & Trade has added 4.3 cents per litre for gasoline and $80 per year for an average home heating, plus indirect costs. Still an issue with trying to do this on a local level though, with other jurisdictions not having any carbon taxes or Cap and Trade. You end up subsidizing some of the big polluters to stop them moving, same issue as seen in Germany. "Most large emitters in Ontario are receiving allowances for free until 2020, which the government says is meant to prevent them from moving to jurisdictions without carbon pricing"

http://www.cbc.ca/news/business/ontario-cap-and-trade-first-auction-1.4053437

All monies from the Ontario Cap & Trade go to a green investment fund, which seems to be better targeted than the California bullet train initiative. Still too low a strike price though, just like the low Government of Canada proposed carbon tax.

http://energyinsider.ca/index.php/details-of-ontarios-cap-and-trade-program-coming-soon-but-plans-to-spend-the-proceeds-are-already-being-announced/

Plan is to integrate with the Quebec and California Cap & Trade markets, which have had a lot of volatility - with many unsold permits. Its accepted that the auctions will be very volatile. Seems to be a problem in California with trading on secondary markets and an ongoing challenge to the Cap & Trade policies.

http://energyinsider.ca/index.php/a-return-to-poor-results-in-the-latest-californiaquebec-carbon-credit-auction/

P.S. I live in Ontario


« Last Edit: April 04, 2017, 04:59:27 PM by rboyd »

ghoti

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Re: Carbon Fee & Dividend Plan
« Reply #153 on: April 05, 2017, 01:13:45 AM »
Just a couple of notes to add: In Ontario the price of gas fluctuates more than 5 cents/liter every week as a regular thing. It peaks Friday as the weekend approaches and drops Sunday evening with a smaller bump mid-week. So it will take years of declining cap for the price of credits to make a difference in gasoline prices.

Natural gas is a different story. The carbon cost is a much larger percentage of price compared to gasoline. However, $80/year won't change the economics of improving house efficiency. It also won't tip the balance towards heat pumps for heat over natural gas until there is a much lower carbon cap and higher carbon credit prices.