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Democrats poised to wimp out on CAFE for now; Dingell pursues 'poison pill' strategy on climate

The latest from Congress

Posted by Joseph Romm (Guest Contributor) at 12:48 PM on 01 Aug 2007

The Washington Post reports today:

Edward J. Markey (D-Mass.) claims to have rounded up about 200 votes for an amendment raising fuel economy standards, while the Energy and Commerce Committee chairman, John D. Dingell (Mich.) and 50 other Democrats have signed on to a weaker version ... But yesterday, Pelosi said the bill was not likely to address fuel economy at all, postponing the issue until a conference committee reconciles House and Senate energy bills in September ...

Pelosi is eager to avoid a breach with the powerful Dingell, who opposes the Markey amendment and whose committee will handle many important pieces of legislation, including health care. The United Auto Workers union and automakers have also lobbied against the Markey measure.

Unfortunately for the nation and the planet, Dingell is working to make fuel economy standards and serious action on climate as politically unpalatable as possible with a classic poison pill strategy:

Dingell said the best way to change fuel economy is to tax carbon or gasoline so people buy more-efficient cars, and he has vowed to make that part of a climate-change bill in September. He opposes the cap-and-trade approach to limiting greenhouse gases that many senators have embraced because, he said, it has not worked well in Europe and is a tax mechanism in disguise.

Uhh, no. Politically, you can't raise carbon prices high enough to raise gasoline prices since even $1 a gallon -- probably the minimum to significantly change fuel economy if Europe is any evidence -- would require a carbon charge of $400 per tonne of carbon -- which would be very harsh to coal, adding more than 10 cents per kilowatt-hour to coal electricity, and politically impossible (I'll post more on this later).

Also, the reason cap-and-trade has not worked well in Europe is that the Europeans didn't have a lot of experience with it and during their trial period they issued too many permits.

The Post article continues:

Some lobbyists have suggested that Dingell was so unlikely to win support for his tax approach that the Democrat, the longest-serving member of the House, was simply maneuvering to make sure no legislation on fuel economy is adopted at all.

But Dingell angrily replied that his climate proposal "is not a straw man." Noting that he backed President Bill Clinton's ill-fated energy and gasoline taxes, he said, "I am one who believes that unless and until we have achieved economic incentives for conservation of energy, there will be very little conservation of energy."

Now that's funny, since, of course, Clinton's energy (BTU) tax failed and even his 4.3-cents-per-kilowatt-hour gasoline tax was ultimately repealed.

Historically, the best way to push energy conservation is with improved government standards. Higher carbon prices will promote fuel switching, but only have a secondary effect on efficiency.

This post was created for ClimateProgress.org, a project of the Center for American Progress Action Fund.

Excuse me? In what history?

"Historically, the best way to push energy conservation is with improved government standards."

To which period do you refer, and in which country?

In America, the oil shocks have been the only things that really have succeeded in prompting sharp upturns in energy efficiency; they made the improved governmental standards palatable, since the standards required less than the market was already demanding (and getting).

And fuel switching is nothing to sneeze at, since the environmental damage caused by fossil fuels is directly proportional to carbon content.  Nor would I be so quick to dismiss the benefits of those taxes on efficiency---natural gas has already peaked in North America and is expected to peak globally within a decade.  That means there's little room for people to switch to natural gas before its rising costs will propel them to seek carbon free fuels.

Dingell's statement that "until we have achieved economic incentives for conservation of energy, there will be very little conservation of energy" is absolutely accurate.

The 5% Project

Auto-catalytic warming

The auto industry spends (100's of?) $1,000,000's advertising SUV's and other enviro-killers and then complain they can't phase them out because that is all Americans want- the downward spiral American style.

Yep, economic incentives matter

Unfortunately, as much as one might lament it, the average Joe (or Josephine) does not base his energy consumption on his desire to save the earth. He bases it on how it impacts his wallet. Whether its a decision to drive less or drive a more fuel-efficient vehicle, lower the thermostat in the winter or raise it during the summer, it usually comes down to $$ (and yes, those advertising $$ spent hawking SUV's matter, too). Conservation will only truly become widespread when the economic consequences of not conserving hit home hard right in the ol' bank account.  

Pearl Street::Jason and Kristina Makansi Read Lights Out reviews
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