A Radical Proposal For Reducing Energy Use - Taxing It - Pioneer Press

[hatrack]

DFL gubernatorial candidate Mike Hatch wants to set arbitrary requirements for renewable energy use. Incumbent Gov. Tim Pawlenty, a Republican, agrees completely and notes he had the idea first. While these candidates are united in support of command-and-control environmental policy, economists are united in thinking that arbitrary mandates — such as percentages of ethanol in gasoline or electricity from wind — are the stupidest way to reduce energy use and pollution.

Regular readers of this column know what is coming next: For more than a century, economists have agreed that the most effective way to reduce harmful pollution — or something else like energy use that has external costs — is to tax it. Such taxes achieve a greater reduction of these problems at the lowest cost to society.

Despite remarkable agreement among economists, politicians obviously are not convinced, even though conservative think tanks and liberal environmental groups crank out policy studies supporting the economists. Aren't economists just Johnny-One-Notes on this issue? Why don't we simply give up and shut up?

The answer is that the issue is too important to abandon. With concern about climate change and turmoil in the Mideast, it is more important than ever to reduce the external costs of excessive oil use and pollution.

EDIT

http://www.twincities.com/mld/pioneerpress/news/local/15254869.htm

[dcfirefighter]

1. Hear Hear!

But perhaps we could not tax energy use per se, but rather those harmful externalities mentioned?

[Bjorn Against]

2. It should be noted that the Pioneer Press is a very right-wing paper

They are wrong about the wind power thing, but it is good they are at least making an argument for reducing energy use. I agree that taxes should be raised on energy consumption, as long as there are protections in place so that the low-income people are not stuck with the bill.

They do have to move to renewables as well, and I can not understand for the life of me why anyone would call that "stupid" as the Propaganda Press does.

[MysteryToMyself]

3. Too many people have to buy gas

Tax the people who are making the profit, not those who have to buy it. In our state we have to drive everywhere. Most people have cut back on as much as they can now. I would rather use an alternative, but can't find one.

[Bjorn Against]

4. I was referring to energy in general not just gas...

Although they do need to find alternatives to gas as well (and there are some available, they just need to do more research to optimize those technologies for the general public), when it comes to energy in general there is wind and solar power which we already have very good technology for we just need to invest in it.