<![CDATA[Grist - Comment Feed for A small price to pay]]> Grist Comment Feed en Comment #1 by Laurence Aurbach http://www.grist.org/article/taxing-climate-change-a-penny-a-mile/ Thu, 02 Nov 2006 13:06:12 -0800 http://www.grist.org/article/taxing-climate-change-a-penny-a-mile/1 Electricity sector

Even just in 2006 we've seen retail gasoline prices go up and down about 75 cents, and the economy didn't screech to a halt. So 25 cents per gallon is feasible from a systemic point of view. Whether it's feasible politically is another thing entirely.

Over in the electricity sector, carbon taxes can influence long term decisions about generating plants, fuels and CO2 control technologies. This article in EPRI Journal looks at a variety of technologies and how they're affected by carbon taxes. For the current level of technology, the carbon tax will have to be $25-$45 per ton before renewables become competitive with conventional generating technologies.

However, EPRI identifies specific technological advances to be implemented by 2020 to create an energy portfolio that "would be largely insensitive to the cost of CO2 yet still be affordable for the developed world and some parts of the developing world" (p. 39). EPRI's roadmap could be a stepping stone to a fully renewable electricity sector, but it'll take a crash R&D program to pursue it.

]]> Electricity sector

Even just in 2006 we've seen retail gasoline prices go up and down about 75 cents, and the economy didn't screech to a halt. So 25 cents per gallon is feasible from a systemic point of view. Whether it's feasible politically is another thing entirely.

Over in the electricity sector, carbon taxes can influence long term decisions about generating plants, fuels and CO2 control technologies. This article in EPRI Journal looks at a variety of technologies and how they're affected by carbon taxes. For the current level of technology, the carbon tax will have to be $25-$45 per ton before renewables become competitive with conventional generating technologies.

However, EPRI identifies specific technological advances to be implemented by 2020 to create an energy portfolio that "would be largely insensitive to the cost of CO2 yet still be affordable for the developed world and some parts of the developing world" (p. 39). EPRI's roadmap could be a stepping stone to a fully renewable electricity sector, but it'll take a crash R&D program to pursue it.

]]> Comment #2 by TerraPassTom http://www.grist.org/article/taxing-climate-change-a-penny-a-mile/ Fri, 03 Nov 2006 00:55:54 -0800 http://www.grist.org/article/taxing-climate-change-a-penny-a-mile/2 Each penny = about one $ per metric ton

Interesting and fun math. TerraPass prices out at about 9 cents a gallon, FWIW.

I would point out one methodoligical flaw -- the ECX (and more correctly the EU-ETS) draws its price signal from that of a regulator who has essential made a judgement about what the price, or supply of carbon offsets should look like. That does vary in the short term, but in the long term the regulator has a supply/demand curve in mind that will encourage certain behaviors.

That doesn't mean that there aren't plenty of climate change fighting projects that could help at lower prices. Current hubub from Washington is that US proposals will go out much closer to the $5 per ton range than the european prices.

Tom Arnold
Cheif Environmental Officer
TerraPass

Tom Arnold Chief Environmental Officer TerraPass



]]> Each penny = about one $ per metric ton

Interesting and fun math. TerraPass prices out at about 9 cents a gallon, FWIW.

I would point out one methodoligical flaw -- the ECX (and more correctly the EU-ETS) draws its price signal from that of a regulator who has essential made a judgement about what the price, or supply of carbon offsets should look like. That does vary in the short term, but in the long term the regulator has a supply/demand curve in mind that will encourage certain behaviors.

That doesn't mean that there aren't plenty of climate change fighting projects that could help at lower prices. Current hubub from Washington is that US proposals will go out much closer to the $5 per ton range than the european prices.

Tom Arnold
Cheif Environmental Officer
TerraPass

Tom Arnold Chief Environmental Officer TerraPass



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