September 16, 2007

Peak Oil in Queensland; Carbon-taxing in America

Maybe because they have already gone through the trauma of serious water constraints, Queenslanders seem to be more serious about the consequences of peak oil.  Or at least some in their government are.
Peter Berkeley, the bike guy from Brisbane who was in Vancouver a few weeks ago, reports in on news at the state level:

Our Premier Peter Beattie retired last week (it all happened very quickly)  The upshot being that there has been a complete reschuffle of the cabinet … 
A major development is that Andrew McNamara, an MP from Harvey Bay has taken up a new ministry called Sustainability, Climate Change and Innovation.  In the hands of anyone else you might say that this is just a rebadging of the old environment department but Andrew has been trying to get the issue of Peak Oil on the radar of the Government and the community for years now. 
He was sworn in on Thursday and by Saturday there was a front page article in the Courier Mail on Peak Oil.  I have attached a link for your reading pleasure. 
Report warns of petrol chaos

From: The Courier-Mail
September 15, 2007
QUEENSLAND is heading for an oil shock. And it is not a matter of if, but when.
As crude oil prices hit a record high yesterday, an as-yet unreleased Queensland Government report warns of massive social dislocation, rising food prices and infrastructure headaches because of rising oil costs.
Video: Oil reaches record prices

Syvret: End of the Oil Age near

Concidentally, there’s a good piece in the New York Times by Gregory Mankiw today on the merits of carbon taxing over cap-and-trade:

Among policy wonks like me, there is a broad consensus. The scientists tell us that world temperatures are rising because humans are emitting carbon into the atmosphere. Basic economics tells us that when you tax something, you normally get less of it. So if we want to reduce global emissions of carbon, we need a global carbon tax. Q.E.D. …
Those vying for elected office, however, are reluctant to sign on to this agenda. Their political consultants are no fans of taxes, Pigovian or otherwise. Republican consultants advise using the word “tax” only if followed immediately by the word “cut.” Democratic consultants recommend the word “tax” be followed by “on the rich.”…
A carbon tax would provide incentives for people to use less fuel in a multitude of ways. By contrast, merely having more efficient cars encourages more driving. Increased driving not only produces more carbon, but also exacerbates other problems, like accidents and road congestion…
A global carbon tax would be easier to negotiate. All governments require revenue for public purposes. The world’s nations could agree to use a carbon tax as one instrument to raise some of that revenue. No money needs to change hands across national borders. Each government could keep the revenue from its tax and use it to finance spending or whatever form of tax relief it considered best.
The first and more difficult step is to convince American voters, and therefore political consultants, that “tax” is not a four-letter word.

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