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How should utilities spend your money? A debate rages

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This is the May 13, 2021, edition of Boiling Point, a weekly newsletter about climate change and the environment in California and the American West. Sign up here to get it in your inbox.
Unless you’re an energy nerd like me, you probably don’t spend much time thinking about how utilities spend the money you pay them each month. You used a bunch of electricity or natural gas, and that’s what you’re getting charged for. Right?
Not quite! In addition to fuel costs, you’re also paying for repairs to old power plants, construction of electric wires and gas pipes, subsidies for energy-saving lightbulbs, discounts for low-income households, shareholder profit margins of about 10%. ....

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Experts Lay Out Their Case Against Carbon Pricing

Yves here. This article takes a look at how little progress is being made against climate/carbon emission targets and recommends more aggressive government action. Presumably the book it’s summarizing, Making Climate Policy Work. However, it sets up a straw man by equating carbon pricing with cap and trade and carbon offsets. We’ve called out those approaches starting with the early days of this website, in 2007, as gimmicks that enrich intermediaries, are rife with fraud, fail to change behavior, but mislead some do-gooders into thinking they’ve accomplished something.
A carbon tax is not a new idea. Al Gore pumped for it in 1992. Illustrious economists, including Fed chairmen, two former Treasury secretaries, and Brookings recommended one in 2019. The Financial Times called for “a clear and predictable price for carbon” in 2007 as a crucial step in combatting climate change, without saying how it could be achieved. Tyler Cowen (!!!) advocated a carbon tax and has a ....

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