numbers, not adjectives — D. J. C. MacKay
9 The White Elephant in the Green Room
by Carl Edward Rasmussen, 2024-07-24
Many speak of the difficulty and complexity of effectively addressing climate change. Indeed, the measures undertaken so far globally have fallen abysmally short, as atmospheric CO2 concentrations continue to soar.
Is it possible, that we're overlooking something blatantly obvious? Could it be, that our collective thinking is too anchored to the distant past? Is there possibly a single, simple idea, which could fundamentally change our outlook? There is, and it is paying for carbon.
Paying to release CO2e would adhere to the principles subscribed to everywhere else in the economy. Whether you think of emitting CO2 as polluting our common atmosphere, or rather as using up a finite common valuable resource, makes no difference. The principles are the same: polluter pays, or you pay when you consume a valuable resource. You should pay the collective owner: all the occupants on earth. In other words, global carbon fee and dividend.
Why is carbon treated differently than almost all other resources? Why do we accept an outdated and failing system which treats carbon as a so-called unpriced externality? Just because it lacks location? There is no good reason. It's only accepted because we've always done it that way. But historically, we weren't threatened by climate change. Rampant emissions of CO2e are caused by it being free to do so. Leading to overexploitation. And climate breakdown. With catastrophic consequences.
A global carbon fee and dividend would transfer wealth from the rich nations who can afford it and have predominantly caused the problem, to developing nations who need the investment, often are most seriously impacted and haven't contributed much CO2. Wealthy nations may not like the idea, and prefer to maintain their unjust and unethical free ride. But it's time to call it out for what it is.
Any system which purports to seriously addressing climate change and doesn't price our collective resources is disingenuous at best. Perpetuating privileges of the wealthy is a white elephant on our global society, is expensive, inappropriate and unethical. And an elephant in the room, as it doesn't receive the headline attention which it deserves. Price carbon globally now.