Asia Continues Greenhouse Gas Emissions Growth, Not Concerned About U.S. Policy

Critics of cap and trade remain unconvinced that tightening the reins on CO2 emissions in America would have much impact on global pollution — and thus would hinder American businesses with little benefit. That’s a sentiment echoed by the Heartland Institute:

Already responsible for one-third of the world’s greenhouse gas emissions, China, India, and other Asian nations are on pace to generate more than 40 percent of the world’s emissions by 2030, according to data released at a climate change conference in Manila, Philippines…

Following a recent visit to Beijing by U.S. climate change envoy Todd Stern, Chinese foreign ministry spokesman Qin Gang indicated his country has no plans to curb emissions in the near future, regardless of whether the United States does so.

“China is still a developing country, and the present task confronting China is to develop its economy and alleviate poverty, as well as raise the living standard of its people,” Gang told reporters. “Given that, it is natural for China to have some increase in its emissions, so it is not possible for China in that context to accept a binding or compulsory target.”

Max Schulz, a senior fellow at the Manhattan Institute, observes China and India have both publicly stated they have no plans to slow their growth.

“The steep growth in emissions by developing Asian countries, combined with clear statements that these nations have no plans to curtail their emissions, further highlights the futility of the United States’ plans to make drastic cuts in emissions,” said Schulz.

What do you think? Would cap and trade be futile due to the impact of Asian polluters et al.?

Cap and Trade Vote Pending?

The Wall Street Journal takes a look at the proposed cap and trade legislation, which could get a vote as early as Friday. Many are still worried that if this measure does stop global warming, it may do so by freezing the wallets of American businesses and consumers in the process:

Despite House Energy and Commerce Chairman Henry Waxman’s many payoffs to Members, rural and Blue Dog Democrats remain wary of voting for a bill that will impose crushing costs on their home-district businesses and consumers. The leadership’s solution to this problem is to simply claim the bill defies the laws of economics.

Their gambit got a boost this week, when the Congressional Budget Office did an analysis of what has come to be known as the Waxman-Markey bill. According to the CBO, the climate legislation would cost the average household only $175 a year by 2020. Edward Markey, Mr. Waxman’s co-author, instantly set to crowing that the cost of upending the entire energy economy would be no more than a postage stamp a day for the average household. Amazing. A closer look at the CBO analysis finds that it contains so many caveats as to render it useless.

For starters, the CBO estimate is a one-year snapshot of taxes that will extend to infinity. Under a cap-and-trade system, government sets a cap on the total amount of carbon that can be emitted nationally; companies then buy or sell permits to emit CO2. The cap gets cranked down over time to reduce total carbon emissions.

To get support for his bill, Mr. Waxman was forced to water down the cap in early years to please rural Democrats, and then severely ratchet it up in later years to please liberal Democrats. The CBO’s analysis looks solely at the year 2020, before most of the tough restrictions kick in. As the cap is tightened and companies are stripped of initial opportunities to "offset" their emissions, the price of permits will skyrocket beyond the CBO estimate of $28 per ton of carbon. The corporate costs of buying these expensive permits will be passed to consumers.

The biggest doozy in the CBO analysis was its extraordinary decision to look only at the day-to-day costs of operating a trading program, rather than the wider consequences energy restriction would have on the economy. The CBO acknowledges this in a footnote: "The resource cost does not indicate the potential decrease in gross domestic product (GDP) that could result from the cap."

The hit to GDP is the real threat in this bill. The whole point of cap and trade is to hike the price of electricity and gas so that Americans will use less. These higher prices will show up not just in electricity bills or at the gas station but in every manufactured good, from food to cars. Consumers will cut back on spending, which in turn will cut back on production, which results in fewer jobs created or higher unemployment. Some companies will instead move their operations overseas, with the same result.

The Chicago Tribune also chimed in today, noting the bill has grown from 900 to over 1,200 pages in a matter of a couple days. Due to the added girth, do you think legislators actually know what they’re voting on at this point? Probably should considering the magnitude and implications this would impose. (Hat tip to our federal legislative guru Cam Carter for passing this story along.)

EcoDriving Brings Less Impact to Environment, Wallet

Are you looking to save money at the pump and reduce carbon emissions? Who isn’t. Gasoline prices and going green have to be two of the most popular topics for 2008.

EcoDriving USA combines both. Sponsored by the Alliance of Automobile Manufacturers, with early support from governors Arnold Schwarzenegger of California and Bill Ritter of Colorado, the web site and interactive tools offer advice for saving money and reducing environmental impact.

The tips — proper tire inflation, as little stop-and-go driving as possible, etc. — will help boost fuel mileage by as much as 15%, according to the web site. If everyone followed EcoDriving practices, the estimated reducation in CO2 emissions would equal 450 billion miles traveled each year.

We’ve seen the stories with similar pieces of advice. The web site, however, includes a video guide, "EcoCalculator" for determining individual and state impacts, as well as additional information. Check it out. The gas and green subjects are certain to remain top of mind, especially when that credit card bill comes with the purchases at the pump.