To save the earth, start by saving it from phony saving-the-earth profiteers

Sir, Martin Sandbu writes about “how a conflict of interests over climate change — something that really is humanity’s common challenge — aligns with and reinforces a deeper culture war dividing centrist urban elites from system-critical populists… [So] we have missed the potentially much greater obstacle of political polarization in the age of populism” “The burden of tackling climate change must be shared”, November 5.

Hear hear! This is exactly the type of issues and challenges we must learn to tackle, if there’s going to be any hope for us to survive as the society we always dreamt of, or avoid turning into that society we always dread, something that in fact means even more than our survival on earth.

But, when Sandbu speaks about what “reinforces a deeper culture war dividing centrist urban elites from system-critical populists”, I disagree, because the real hard core divide in this case is between those expected to pay for to help save our planet, and those who expect to profit from those efforts.

But Sandbu also refers to a remedy to that, when he mentions, “the carbon ‘fee and dividend’ approach advocated by climate scientist James Hansen [which] would levy duties on fossil fuels and redistribute the revenue in equal per capita amounts to all residents”

That’s precisely in line with what I recommended in a letter published in FT on how Mexico City should go about in order to reduce its serious pollution problems.

If Emmanuel Macron, perhaps hand in hand with Canada’s government that is also thinking about higher carbon taxes, decides that all revenues from taxes on fuel, and similar, are to be shared out equally among all citizens, that would set an example to other nations, that would at least be worth some ten Paris agreements.

Sir, let me be cleat about it. If I am going to help to save the world, by paying higher carbon taxes, I want all of it translate into a clear market signal that saves the planet, and not into something which unduly enrich those promoting saving the world, or those profiteering on the process.

@PerKurowski

It suffices for one single nation to set a high tax on carbon emissions and share out its revenues among all its citizens, to really begin saving our pied-a-terre.

Sir, Martin Wolf, whether it is true or not, is absolutely correct calling out: “It is five minutes to midnight on climate change”. We have no right to ignore that threat, even if its possibilities were low. “Inaction over climate change is shameful” October 23.

Wolf asks and answers: “So what needs to change? Net global CO2, methane and nitrous oxide emissions would need to fall to zero” though he also observes. “This is very unlikely to happen. That is no longer because it is technically impossible. It is because it is politically painful.”

It should not be! If only one nation went ahead and placed a big tax on carbon emissions, and shared out all resulting tax revenues equally, unconditionally, among all its citizens that would be a game changer… many would be politically pressured to jump aboard saving the planet that way.

Why does it not happen? Quite simply, the redistribution profiteers, those who profit from negotiating conditions, won’t touch with a ten feet pole an unconditional pay like this, less it spreads to other areas of their franchise, for instance by means of a Universal Basic Income.

Do I know? I come from Venezuela where nothing similar to its current tragedy would have happened had its oil revenues been shared out equally to all Venezuelans, and yet that possibility is rarely mentioned by the opposition, because there’s always an infinite pool of aspirants to be the next redistributors on turn.

Paris Accord? To me it was just a great photo-op for redistribution and fight against climate change profiteers that would do little to improve the chances for my grandchildren to live better.

More than a year ago the Climate Leadership Council proposed a carbon tax along the lines of what I describe here… seemingly they were silenced!

PS. For Mexico City, to combat pollution, I proposed just that..

@PerKurowski

Mexico needs carbon and petrol tax, which revenues are all redistributed by a Universal Basic Income mechanism.

Mexico needs to align incentives on pollution

Sir, Jude Webber writes about the horrible pollution caused by the excessive number of cars in Mexico City (“Corruption and car fumes clog up the capital”, Notebook, May 26) and proposes that eliminating corruption in emission testing could be an important part of solving this. Fat chance! As a Venezuelan, I know that this is not a viable route.

Ms Webber writes: “Mexicans are snapping up cars as fast as the world’s seventh largest producer can churn them out . . . Domestic consumption is the engine of economic growth so there is no official incentive to dissuade people from buying Mexican-built cars and associated products such as petrol.”

That’s really not the case. You must build up the right political and economic incentives to correct for it. If Mexico imposed carbon tax, petrol tax and a strong traffic toll system, and made sure all the revenues from it were immediately returned to the economy by means of a universal basic income, you would face a different reality. Then you would have aligned the incentives for pollution control and the fight against climate change with the fight against inequality, and that makes for a very powerful alliance.

Standing in the way, besides initial protests from car owners, would be the redistribution profiteers who would miss a chance to make political and economic capital. Just as in Venezuela.

Published in FT