Carbon tAX

Originally posted by Metal Brain
I don't see much downside to higher efficiency standards of electrical appliances and market based solutions are not very effective in this area.

There is only so much to be gained by increasing the efficiency of electrical appliances. Residential electrical energy use accounts for only a small fraction of the overall total. See https://flowcharts.llnl.gov/content/energy/energy_archive/energy_flow_2009/LLNL_US_Energy_Flow_2009.png for a nice picture illustrating estimated energy use in the US in 2009. If I'm reading this right, inefficiency in residential electric use is less than 3% of overall energy use. While this is still significant, efficiency regulations in this sector can only get you so far.

As for a carbon tax vs. cap and trade, I'm not sure I understand cap and trade but to me a carbon tax makes more sense if the goal is to reduce carbon emissions. A carbon tax could be adjusted over time in response to new information. However, once firms start buying and selling carbon credits it seems like it would be more difficult to make adjustments.

Originally posted by richjohnson
There is only so much to be gained by increasing the efficiency of electrical appliances. Residential electrical energy use accounts for only a small fraction of the overall total. See https://flowcharts.llnl.gov/content/energy/energy_archive/energy_flow_2009/LLNL_US_Energy_Flow_2009.png for a nice picture illustrating estimated energy use in the US in ...[text shortened]... uying and selling carbon credits it seems like it would be more difficult to make adjustments.

That's a good question about C & T at the end. One way to make it flexible to new information is for the government to enter into the permit market and buy or sell permits until the new desired total amount is reached. It's a bit like how monetary policy works but much easier because you don't have a money multiplier to deal with.

Originally posted by richjohnson
There is only so much to be gained by increasing the efficiency of electrical appliances. Residential electrical energy use accounts for only a small fraction of the overall total. See https://flowcharts.llnl.gov/content/energy/energy_archive/energy_flow_2009/LLNL_US_Energy_Flow_2009.png for a nice picture illustrating estimated energy use in the US in ...[text shortened]... uying and selling carbon credits it seems like it would be more difficult to make adjustments.

The assertion that carbon is really a big problem is questionable at best.

http://www.sciencedaily.com/releases/2011/08/110811113956.htm