clear, capitalism is not just interested, it’s down right salivating over the
prospect of trillions in government spending to aid construction of industrial
power plants on a mind boggling scale:
“Worldwatch reports that as of 2008, rapid growth has turned the new
renewable energy industries into lucrative businesses, with demand
outrunning supply and profits soaring. An estimated $71 billion was invested in new renewable
electric and heating capacity …. Corporate research and development investment
in clean energy technology reached $9.8 billion in 2007. Leading corporations making major investments in renewable energy include Applied Materials…, BP…
, General Electric…, DuPont…, Goldman Sachs…Venture capitalists typically make
money by investing in technologies with small market share but high growth potential.
Venture capitalists like the energy sector because of its vast size… The economics
of renewable energy will improve as the scale of production grows.” p. 38
Christie’s outreach peaks when quoting author Lisa Margonelli, cheerleading
the “renewable” energy bonanza: “If we want a green alternative to black gold,
we’ll need to ‘greendy’ the U.S. economy - encouraging the greedy and virtuous
alike to create the best fuels.” Now hold on there Lance, weren’t we scorning
“wealth and power”, “the industrial growth culture”, “overshoot”, and “shop ‘til
we drop” a minute ago? What happened to “Small is Beautiful” and our “moral obligation”?
The radical within:
Again, if you’re trying to influence the powerful members of a delusional
society, these are the kind of compromises that end up being made. But
while the renewable energy plank may be exactly what our energy desperate
pols want to talk about, many of the remaining planks would throw a bucket
of ice water on the party. One wonders if Christie is trying to slip more
than a few of these by when they’re not looking:
- German-style feed-in tariff to encourage renewable energy systems investors
- national consumption tax (modeled after Europe’s value-added tax)
- eliminate lower tax rate on capital gains
- single payer health care
- ecological economics
- national organic farming
Many of these have merit, but they’re sort of like trying to pull a
drunk off his bar stool for a quick AA meeting. It won’t happen without
somebody getting hurt.
The emissions tax
Right now Congress faces popular revolt over a cap and trade bill that
might have emission allowances running about $20 per ton CO2e in 2020 (3),
maybe 20 cents/gal higher gasoline prices and about $100/year in increased
energy costs for households (4). By contrast, after the six year phase-in
of the Renewable Deal’s $300 per ton CO2e emissions tax, gasoline would
be at $5/gal (not counting peak oil), electric bills would be up 80% (5),
and who knows what the price multiplier effect would be on goods and services
throughout the economy. The Renewable Deal would spend the trillion-dollar
per year tax revenue on renewable energy plants and the “smart” grid, and
provide help with hybrid and all-electric vehicle purchases and home insulation
for low-income households. (Note that most “progressive” carbon tax plans
return the revenue to taxpayers in equal shares to offset its impact on
those most affected by higher energy prices.)