Carbon Tax

Carbon Markets Faltering

Meanwhile ExxonMobil comes out in favor of a carbon tax


Science Media Centre

The idea behind cap-and-trade carbon dioxide emissions trading schemes is that auctions will set a price on emissions that will encourage the development and deployment of low-carbon energy technologies as a way to protect the climate. However, current prices are so low that nobody is really taking them into consideration as they plan their capital and input energy strategies. For example, the price for a ton of carbon dioxide in the Regional Greenhouse Gas Initiative market that encompasses most northeastern is hovering around $4.50. Over at the European Union market, carbon dioxide emissions permits go for just a bit over $5 per ton. Interestingly, the price in the California market is about three times higher at $12.71 per ton. Why are prices so low? As University College London analyst Michael Grubb explained to the Straits Times:

"Governments have set inadequate targets due to lobbying pressures and because they didn't think carefully enough about overlapping efforts. That has destroyed investor confidence that carbon prices will rise."

It's almost as though politicians fear that raising the price of electricity and transport fuel is not popular with their constituents.

Meanwhile, ExxonMobil, which assumes an internal planning carbon price of $60 per ton by 2030, has come out in favor of what the company hopes will be a more predictable carbon tax.

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  1. Here you go, another climate change denial article. Someone shut this man up quickly!

    1. I’m gettin’ more uncertain by the word!

    2. $ 60 a tonne is about the same pro rata as the Fed’s tax on a carton of cigarettes.

  2. ExxonMobil comes out in favor of a carbon tax

    And here we see the payoff for the AGs who sued Exxon for climate denialism.

    1. And a bit of a kick in the nuts to any upstart competitors that might want to gnaw into Exxon’s market share….

      1. Barriers to entry, FTW!

    2. Yep. Pure extortion.

      The forces of evil march on.

    3. Nah, Exxon is heavily invested in natural gas (number 1 in the States) and they figure they can parlay that into a competitive advantage.

    4. I think this has more to do with hurting smaller competitors just like all other regulatory capture.

      1. I would say this is naked regulatory capture. Perhaps the most naked since the Food and Drug Act.

        1. The Pure Food Law of 1906 (enforceable in 1907) had a lot to do with 1905 Chinese boycotts of all US products. Mrs Winslow’s Soothing Syrup for babies had POISON: MORPHINE on the British labels, but not on the labels shipped from These States. That short law merely eliminated fraud in advertising, but shysters saw in it a way to coercively distort supply and demand curves.

    5. I’m actually shocked some posters disagree. Even if they aren’t really wrong, the extortion ought to be obvious as the #1 motivator.

      1. I thought Exxon was already for a carbon tax. Maybe I’m confusing them with BP or someone else.

        1. Exxon Mobil has been actively supporting a Carbon Tax since at least December. But they would probably already have heard about the potential AG actions before then.

          So yes, this was probably in response to pressure from the Left.

      2. Extortion it is, but the Bush asset-forfeiture Crash has spread out and destroyed every economy with a communist income tax. The increase in parasitism further weakens every economy dependent on energy, making Texas more closely resemble Venezuela (today’s Starnesville). Money is what attracts parasites, but once the host is dying, they move elsewhere, like into the Military-Industrial Complex or the Televangelizing Industry.

  3. The idea behind cap and trade is to gradually ban icky things like free markets. The only encouragement is the same as that used to encourage you on april 15th.

  4. Let’s tax Exxon then.

    1. I think Exxon should just go ahead and send in a check. I am sure the shareholders won’t mind one bit!

      1. They won’t. It comes out of the pockets of people who buy gasoline, oil, paint, plastic, metal, pharmaceuticals, electricity, food, lumber, appliances, ceramics, water, services of any kind….shall I go on?

        This will be a net decrease in quality of life for everyone but the looters.

      2. Bribing governments is just a cost of doing business.

  5. It’s almost as though politicians fear that raising the price of electricity and transport fuel is not popular with their constituents.

    Remember those smug fuckheads who lectured us about how we can learn a lesson from Australia? Pepperidge Farm remembers.

  6. If government influence would cease, the carbon market would correct itself to exactly where it should be.

    1. Zero?

  7. Ron, this time you didn’t disclose that you own 50 shares of ExxonMobil.
    Did you sell them?

    1. That he sold back at the top of the oil market and is waiting for the double-dip crash to end after January of 2017?

  8. I blame TRUMP.

  9. These regulations are as thoroughly retarded as one which would tax individual breaths taken by every person in the country.

    “Breathing is an unregulated activity, and it results in colossal quantities of carbon dioxide being released into the Earth’s atmosphere. We must enact a breath tax to combat climate change.”

  10. People are still driving their cars and leaving their lights on. Obviously, the price of carbon based fuel must be raised until those activities cease, and Man once more lives in harmony with Nature starves in the dark.

    1. In the news: “Greenpeace cites FarCry Primal as example of perfect human society.”

  11. My wife and I own a long single-story house in Southern CA with south-tilting roof (on one side of course). I have looked at solar and I think it’s OK. We’ve talked to suppliers about this. You get 75 page contract to sign in multiple places for this to go. Even if I read and understood it myself my wife would cut my hand off with a meat cleaver before I could sign it. Other than that I can’t complain.

    1. I’ve looked into it. Summer fog. Just isn’t worth it.

    2. The house is in the Pasadena area. There is no marine layer. I’m not sure where you live but there is a maine layer over Port Hueneme until 11 each morning while the sun in shining on Oxnard shores from dawn, just 3 miles away. Marine layers are very local in Socal.

      1. Manhattan Beach. We have fog til about noon, sometimes later. And then again around 5 o’clock. The fog just gets trapped between here and Catalina.

        If I lived in the valley, I would probably do it, if for no reason other than to protect against rolling blackouts during a heat wave. But here, I’d be lucky to get 50% output.

        1. “If I lived in the valley, I would probably do it, if for no reason other than to protect against rolling blackouts during a heat wave. But here, I’d be lucky to get 50% output.”

          Solar won’t protect you versus blackouts. It will automatically shutdown if the grid drops off-line as a safety measure. (To avoid electrocuting a lineman who’s working on the power line).

          Furthermore, you can’t run your house directly off of solar because it’s variable. You have to tie it into a battery system. You’d probably need to spend an addition $10K to be able to automatically switch to batteries during a grid black out.

      2. Aside from the phantom pedophiles and the 405 freeway, Manhattan Beach is very nice place to live. I jest a bit. Just wake up early and it’s perfect.

        1. My wife’s law firm is in Glendale. Driving THROUGH downtown is just awful. She doesn’t leave until 10am.

          We’re considering doing the early thing.

        2. 4:30 sharp. If you have kids to get ready for school 8:00 that’s a problem This is why we have domestic servants here in California. And when they get too uppity we bring in more.

  12. ExxonMobil comes out in favor of a carbon tax

    Of course. Just like Philip Morris wants the FDA to regulate tobacco, or Uber begs governments to PLEASE REGULATE ME

    Because that which is Regulated is predictable; and investors like predictability above all else.

    its basically an open-invitation to regulatory capture; merge the interests of govt and the oil-industry. Make govt reliant on that revenue, and consequently nothing but a measurable cost to operations of the business. and the value it provides is that it pre-empts any future meddling for at least a decade or so, and gives the business deep claws into its own regulators.

    that’s where its going, and i doubt much will stop it. esp. when you have libertarian magazines cheerleading the idea of carbon-taxes.

    1. Something must be done about the carbon privilege.

  13. I sometimes consider converting a few acres to solar “farming”. Not because I believe in it, and certainly not because I am dumb enough to think it makes economic sense. Just to fuck with my neighbors, who would freak out about the ruination of their “viewscape”.

    1. “I’m sorry your mom blew up, Ricky. The science is the science. It just happens that the optimum energy conversion angle focuses all the energy that isn’t collected on your kitchen window.

  14. Because that which is Regulated is predictable; and investors like predictability above all else.

    What better way to cock-block innovators and disrupters than to ringwall your industry with government regulations?

  15. Exxon has been in favor of a carbon tax for quite some time.

  16. Actually, it is almost like it is a completely arbitrary price trying to account for something almost entirely unquantifiable.

    Just because you create a market, does not mean there is an actual commodity in that market.

  17. So asset forfeiture and resale is equivocated with voluntary markets? Didn’t These States have a Peculiar Institution of the same general sort at one time?

  18. Great, I like that people pay attention to this problem and try to solve it!

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