Saturday, October 08, 2011

Chart of the day: on how we don't pay for the energy we consume


But, of course, politics means that we can never have rational discussions on addressing the huge gap between the private and social costs of energy.  Not here in the US, and not across countries.

This NYRB article, from where I excerpted the above graphic, adds:

The need for taxes on energy externalities such as carbon emissions is central to our ability to reduce the harmful side effects of economic growth. It is striking how the political dialogue in the US has ignored a policy that has so many desirable features. Perhaps, in the near future, faced with the deadline of a dire economic situation, negotiators will formulate such a policy. It would generate substantial revenues while bringing so many long-run economic and environmental benefits. Simply put, externality taxes are the best fiscal instrument to employ at this time, in this country, and given the fiscal constraints faced by the US.

Unfortunately, ain't gonna happen anytime soon!

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