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By: RTSplayer , 6:06 PM GMT on April 10, 2013
So, let's assume the U.S. Representative and Senate somehow gets the vote to pass the Carbon Tax, or some compromise at like $15 growing to $25 per ton, for example.
Who is going to deal with the foreign governments who will not pass carbon taxes, and don't even have as good of regulations as we have?
Already, the U.S. economy is being drained by "American" companies who moved their manufacturing base to China to avoid pollution regulations and wage regulations (anti-slavery regulations). If you add a carbon tax on top of that, then it will be just one more incentive for any new manufacturing projects of "American" companies to be built in China, where they won't be required to pay the tax.
If they can operate their factories with no scrubbers and such, and they don't pay a carbon tax, and their minimum wage is a few dollars per day, or some crap like that, then there is no incentive to build manufacturing base in the U.S. and as a result the Carbon tax will actually cause more pollution than it prevents.
The only way it will work is if all the developed and developing nations around the world agree to meet the same standards, and pass at least some double-digit carbon tax.
And for example, container ships will buy their fuel directly from China or the mid-east, or in international waters along their intended routes, so they can avoid U.S. or European carbon taxes.
Keep in mind, China falsifies environmental standards anyway, as we already know. Even just recently, a study showed that China under reports it's fisheries by a factor of ten. If they under report their fisheries, imagine what else they under report. Their government also subsidizes coal and steel, and prices U.S. and Canadian metal works out of the market, and then buys out the U.S. companies when they go under, and buys out the mining rights in Canada as well.
How is this possible? Because they are communist so the government can pool resources and swap resources around, take a loss here, but make a big gain there, etc. Also, more importantly, they don't have clean air standards, which means the "currency" cost of operation of power facilities and foundries in their own nation is much lower than in Europe or North America. This allows them to cheat and buy out their international competition.
A U.S. tax on Chinese imports would not solve the problem, because they would still be shipping many of their products to other parts of the world anyway. The U.S. is only a fragment of their market, which they cheat to maintain.
If China is not forced to meet the same standards as everyone else, then creating and increasing a U.S. carbon tax will have the opposite effect of it's intended consequences.
If the extreme left wants to talk morals, then the moral thing to do is to force China and other non-compliant eastern nations to increase their emission standards to what the west has already been doing for decades. Only then should other measures be implemented.
It is not moral to punish the people who are already doing "better" (U.S. emission standards,) while not punishing the people who haven't even tried (China and other parts of Asia and Africa).
The views of the author are his/her own and do not necessarily represent the position of The Weather Company or its parent, IBM.
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