What few Americans realize is that the impact of these policies would not be evenly distributed. The Congressional Budget Office recently looked at the approach taken by most global warming proposals in Congress - known as cap and trade - that would place a cap on carbon emissions, allocate how much everyone could emit, and then let them trade those emissions. Let me quote from the CBO report: "Regardless of how the allowances were distributed, most of the cost of meeting a cap on CO2 emissions would be borne by consumers, who would face persistently higher prices for products such as electricity and gasoline. Those price increases would be regressive in that poorer households would bear a larger burden relative to their income than wealthier households would." Think about that. Even relatively modest bills would put enormous burdens on the poor. The poor already face energy costs much higher as a percentage of their income than wealthier Americans. While most Americans spend about 4 percent of their monthly budget on heating their homes or other energy needs, the poorest fifth of Americans spend 19 percent of their budget on energy. Why would we adopt policies which disproportionately force the poor and working class to shoulder the heaviest burdens through even higher energy costs?
Friday, October 26, 2007
Senator James Inhofe Makes Global Warming Speech
Human activity-caused global warming skeptic Senator James Inhofe, right, gave a major speech on global warming today on the Senate Floor. Although we disagree with the former chair of the Senate Environment & Public Works Committee on his general position on global warming, we agree with many of his concerns and observations. One particular concern we share in regards to any climate change legislation is the potential effect on the poor.
AAEA has developed a program call the Environmental Justice Allowance Reserve (EJAR) to address Senator Inhofe's concerns. These allowances would come from a special reserve, similar to the current Acid Rain Program Renewable Energy and Conservation Reserve, when the initial allowance allocation is made. They would be awarded to utilities, automakers and others that undertake environmental justice practices and programs designed to mitigate or reduce price shocks, increase the installation of pollution control equipment, promote community education and enhance health-related activities. Utilities and automakers could choose to work with organizations and businesses that conduct environmental justice activities related to climate change mitigation and reductions in emissions of sulfur dioxide, nitrogen oxides and mercury.
Senator Inhofe on how the poor will pay for symbolic climate measures: