Opinion

Digging out of the Energy Hole

Carbon tax just part of whole new mindset.

By Ian Bruce, 30 Jul 2008, TheTyee.ca

Campbell Cash Ad

The first step in getting out of a hole is to stop digging. But in the face of global warming and skyrocketing oil prices, some people just want to dig deeper.

Campbell Cash Votes Are In

We asked each co-founder of the Green Your Campbell Cash campaign to contribute an article to The Tyee, and this is the last, by Ian Bruce of the Suzuki Foundation.

The campaign, launched earlier this summer on The Tyee, is finished accepting votes from readers for your favourite climate-change initiatives, but the top five vote-getters, each to receive $500, will be announced Thursday in The Tyee. You can still visit the website and browse the many great projects.

The other Green Your Campbell Cash founding partners are The Tyee, the Western Canada Wilderness Committee, Voters Taking Action on Climate Change, and the Pembina Institute.

--Tyee editors

U.S. President George Bush's response to record-high oil prices over the past few months was to lift a ban on oil and gas drilling in U.S. coastal waters that his dad, George Bush Sr., issued in 1990, and to call for drilling in the Arctic National Wildlife Refuge. And International Energy Agency chief economist Fatih Birol recently suggested that Canada should meet the challenge by expanding production in the Alberta tar sands and opening up the B.C. coast to oil and gas exploration.

Fortunately, the U.S. Congress, which imposed its own moratorium on offshore drilling in 1981, appears unwilling to heed President Bush's appeal to lift its ban. The November presidential election could up the stakes, though, as Republican candidate John McCain favours offshore drilling, while Democratic candidate Barack Obama opposes it.

Offshore exploration, drilling in wildlife preserves and expanding the polluting tar-sands will only get us further into a hole that is already so deep it's hard to see the light at the top. As writer George Monbiot noted in a recent article in the Guardian: "The price of oil is so high and it hurts so much because there has been no serious effort to reduce our dependency."

Economy and ecology

We aren't going to eliminate our dependence on fossil fuels overnight, but we must do everything we can to cut back; otherwise, we'll face the consequences of an increasing cost of living as oil prices spiral upward, as well as the disastrous consequences of rapid global warming. Scrambling to extract every possible drop of oil from the Earth as quickly as possible will only postpone the inevitable and intensify global warming.

The current energy crisis is a reminder that we can't choose between economy and ecology. We need a range of solutions to diversify our energy resources, develop alternative technologies and significantly reduce our reliance on dirty and increasingly scarce fossil fuels. The recent oil-price increases and the pain they have caused highlight how vulnerable our economy is to fluctuations in the world energy market.

A carbon tax is just one measure among many to help get us out of the hole. To start, a carbon tax sends a signal that the Earth's atmosphere is not a free dumping ground for polluters. A "polluter pays" principle takes into consideration all the costs of extraction and distribution -- and the costs of polluting the environment are very real.

Putting a price on carbon through measures such as carbon taxes and cap-and-trade programs, along with regulating fuel-efficiency standards and providing incentives for green technologies, will also spur innovation in energy alternatives, fuel efficiency, and environmentally sustainable products.

Steps towards a walkable world

We must also focus on better community planning and transit infrastructure to make it easier for people to walk, cycle and take transit to get around. Many of our cities are designed for automobiles, and although developing more fuel-efficient vehicles is an important step, reducing our overall need for cars and trucks is essential.

It's unfortunate -- and it's been a bit of a roadblock -- that so many people have looked at the energy crisis and the solutions to resolve it as a problem rather than an opportunity.

The carbon tax alone, in making it more expensive to use polluting technologies and cheaper to become greener, will give the economy a boost. If we really get serious about the challenge and start developing and implementing more sustainable ways to live, we will create an enormous range of economic opportunities and jobs.

Carbon tax money stays here

As for the argument that a carbon tax unfairly penalizes B.C. residents already reeling from massive gas-price increases, we must realize that oil prices will likely continue to rise by amounts many times greater than the increases due to an initially modest carbon tax. But with global market price increases, the extra dollars we pay for gas and diesel leave the local economy to end up in the coffers of foreign oil and gas companies. As the B.C. carbon tax increases, the money flows back to British Columbians through lower-income and some business taxes. Unlike the huge market price increases, the B.C. carbon tax returns more money to low-income households than it takes. (Protecting and improving the lives of the most vulnerable should be a priority as the carbon tax increases and evolves over time.)

People can use that money to reduce their energy consumption through actions such as switching to fuel-efficient vehicles and improving household energy efficiency with better insulation and other conservation measures.

Government must also play a more active role by investing in public transit, renewable energy, and home energy retrofits for rural communities and low-income households, as well as by reducing investment in automobile infrastructure. Although B.C.'s carbon tax is revenue-neutral, or in other words, a tax shift, we shouldn't rule out improvements such as returning a portion of revenue to local economies through investments in these green initiatives. These investments could also be funded through existing budget surpluses (B.C.'s budget surplus was $2.9 billion this past fiscal year), but funding built into the design of the carbon tax would be more stable.

Regulations such as those governing fuel efficiency are another cost-effective way to get us on track. For example, vehicle standards adopted by California can save a car owner much more in fuel costs over the life of the vehicle than the extra cost of the vehicle. These savings will pay back any increases in vehicle costs in about three years. The most important point is that money saved on fuel is money that isn't leaving the local economy.

No time for cynicism

It's easy to feel cynical about the challenge of confronting global warming when governments have taken so long to even recognize the magnitude of the problem, and some have yet to react. But cynicism only breeds paralysis -- the last thing we need to confront this problem.

Individual action is every bit as important as action from governments and industry. If nothing else, our personal efforts send the message that we care and that we're serious about this problem. We can all play a part in building the community bonds necessary to get governments to put into play the laws, regulations and investments required to solve this crisis.

We have some important choices to make. We can dig ourselves deeper into the fossil-fuel hole, and risk burying ourselves in the fallout from reliance on an increasingly scarce resource and corresponding massive price increases, as well as the serious consequences of global warming. Or we can stop digging and climb out. The latter would mean diversifying our energy sources and our economy so that our lives aren't governed by continually rising fuel prices, and it would mean learning to live in a sustainable way that will result not only in healthy economies but also in healthier humans and ecosystems.

Nobody likes taxes, but most people like what they provide. As the late U.S. Supreme Court Justice Oliver Wendell Holmes Jr. once said: "Taxes are the price we pay for a civilized society." The carbon tax, as one step out of the hole of fossil-fuel dependency, will help create a more civilized -- and sustainable -- society. We can also think of it as an investment in the future.

Now let's focus on taking the next step. We don't have time to lose!

Related Tyee stories:

 [Tyee]

22  Comments:

Login or register to post comments

  • Jeffrey J.

    3 years ago

    Gas Tax PR spin

    Social programs have always been based on accessing society's wealth (i.e. via taxation). Northern Europe is the best example of a progressive, functioning social democracy.

    In BC the question remains: has the Campbell government changed its anti-taxation policy? Is it no longer pro-oil? Sadly, there is no evidence that the 2 cent gas tax signals a change in this right wing regime. And if they haven't changed, the time for celebration and optimism about BC's future is premature.

    That's why citizens are leary of the Suzuki Foundation and the Wilderness Committee who appear to be defending the Liberal policy. What's up with that? Thanks Tyee for continuing to publish articles that inspire debate.

  • Frank Lee

    3 years ago

    I basically agree with Ian Bruce BUT....

    Progressives at the CCPA and some of the leading environmental organizations in BC have been so happy with the idea of the carbon tax that they have skirted around some of the problems with Campbell's version of it. The best and most balanced discussion of this issue that I have seen is in Mark Crawford's blog, B.C. Policy Perspectives http://www.markcrawford.blogspot.com/. Crawford has three blog postings, the first of which, "Axe the Tax?" http://markcrawford.blogspot.com/2008/06/axe-tax.html , sets out the general argument in defense of carbon taxes, and is commented upon by Bill Tieleman.

    The second,"The New Utilitarians:Ignatieff, Campbell, Dion, and the Inadequacy of Revenue Neutrality," http://markcrawford.blogspot.com/2008/07/more-than-opportunism-lies-behind-ndp.html ,exposes the unfairness of revenue neutrality and proposes that carbon taxes should replace excise taxes and not progressive income taxes. David Schreck makes the comment that more can be accomplished through regulation than piling on a gas tax.

    In the third posting, "As I was Saying", http://markcrawford.blogspot.com/2008/07/as-i-was-sayingwhat-to-do-about-carbon.html, Crawford reasserts the value of a well-designed carbon tax within the context of a more comprehensive climate change policy.

    Crawford agrees with Ian Bruce that we should not simply rely upon high oil and gas prices to ensure energy conservation. On the other hand, the carbon tax should be revised to accomplish conservation in a more equitable and effective manner.

  • Sidney Ball

    3 years ago

    Tieleman spins tax

    Interesting that Bill Tieleman's comment to Mark Crawford's site is about the Liberals playing politics with the carbon tax. Here's a quote from Tieleman in a Tyee article from June 5:

    The way things are now, the carbon tax is a made-to-order election issue for the NDP and they should seize it, said Bill Tieleman, a political consultant who worked for the party in the 1990s.

    "You have to drive it and drive it mercilessly," he said. "They have the opportunity to make Campbell wear not just the carbon tax, but the market increase as well."

    Seems the NDP has been listening to the spin doctor. A shame, really, when there are so many things that the NDP could be criticizing Gordon Campbell's Liberals for, rather than playing politics with one of the few sensible things the Liberals have done.

  • Sidney Ball

    3 years ago

  • ME2

    3 years ago

    Let's stop spinning our wheels

    Here's an interview with Paul Erlich.

    Note that he asserts that the ONLY winning approach is to immediately embark upon alternative energy projects.

    http://forests.org/shared/alerts/send.aspx?id=canada_clayoquot_logging

  • morechatter

    3 years ago

    What an oxymoron

    Return more money than it takes from low income households? Its taking from those that do not have anything to take? Giving back more than it takes. Here you stupid begger give me the last few cents you got in your pocket you winner because in about a year from now or so you may get it back. Give me a break.

  • morechatter

    3 years ago

    When foundations endorse

    they to need to survive and when it comes to the carbon tax most British Colombians believe they can survive quite nicely without it and they have been filled to the brim with advertisements and endorsements so this means very little to most just more gibble. And it would not surprise me at all if they feel that way about Campbell's Liberals.

  • morechatter

    3 years ago

    And a whole new mind set or is it?

    Do you feel manipulated, abused, controlled, lied to, have things of value gone missing and does it seem like no one is listening well you too could be suffering the side effects of living with a drunk, a drunk who runs this province. Seems to me it more of the same old same old when its comes to the viability of the tax and the liberals credibility as reports cross their desk refuting need for carbon tax so it sure would be nice to have the sobering facts.

  • G West

    3 years ago

    Why is it sensible?

    Why is it sensible to support a tax that is purpose built to do NOTHING; is doing nothing and will do nothing?

    The central feature of the Campbell Tax is its revenue neutrality and that is what is essentially wrong with it. Furthermore, it is administratively costly and irrelevant.

    We are already moving into a period of economic stagflation which the Campbell Tax only exacerbates - especially for the bottom 80% of the population.

    Instead of using the revenue to address other areas where changes ARE possible, the Campbell Tax Wurlitzer vacuums up money for each fiscal year and then spins it back out in more of the kind of pandering tax cuts that have created the services and delivery crunches in other areas of provincial jurisdiction such as health care, homelessness, education, disability services, affordable housing and the like.

    There are plenty of ways the revenue from the Campbell Tax should have been used to address the abatement of GHG emissions. Instead, Campbell and Falcon promote the insanity of the Gateway strategy.

    Anyone who cares to learn about what might have been started by this government can read about it here:

    http://www.mckinsey.com/clientservice/ccsi/pdf/US_ghg_final_report.pdf

  • Budd Campbell

    3 years ago

    IAN BRUCE - WHO PAYS HIS SALARY?

    Ian Bruce is not some professor. He's an advocate, a promoter of certain ideas and ideologies. In that regard, he's rather like the staff of the Fraser Institute, also a tax deductible "charity".

    Who pays Ian Bruce's salary and benefits, and what ARE those benefits? Do they include a company car and free parking? Or does he get a transit pass? Yes, I know it's the Suzuki Foundation who pays his salary, but who pays into the Foundation's $6 million per year slush fund? The major donors are named in the report, but who are these people?

    Could they be executives and professionals and shareholders associated with various "green" companies? Companies that sell wind turbines, solar panels, small scale hydro generators, and the like?

    The Suzuki Foundation promotes hybrid vehicles as the green way to go. But as Phil Edmonston of Lemonaid points out, those cars will have to be re-batteried at some point, at a cost of about $8,000 each, their fuel consumption advantages can be vanishingly small compared to other four cylinder cars, and no one knows how long their electric motors will last or what it will cost to maintain or replace them.

    If the BC Govt's or Stephane Dion's carbon tax proposals are so beneficial, can Ian Bruce possibly answer this simple question. How much of Premier Gordon M. Campbell's $14 billion transit scheme will be paid for by the revenue-neutral carbon tax? Just thought I'd ask.

    And if the Suzuki Foundation and SPEC and the other ENGOs who are so enhralled by the carbon tax are truly concerned about public transit, why do they continue to peddle LRT solutions exclusively, and to urge the cancellation of the GVRD's only long distance, heavy rail transit service, the West Coast Express.

    If they were genuinely interested in substituting transit for longer distance commutes, a reasonable person would expect them to be counselling the Premier and Minister Falcon to expand the WCE service to 18 hours a day and to run it in both directions as the GO trains do in Ontario, and to shorten its travel time with track investments.

    And one would expect them to urge additional WCE services along the CN line into the south side of the Fraser Valley, to Surrey, Langley, Abbotsford and Chilliwack, and along the Arbutus line to South Vancouver, Richmond, Delta, White Rock and Bellingham, and along the BCR/CN Line north to Squamish, Whistler and Pemberton. Instead, they reject any heavy rail service with park and ride lots as an instrument of urban sprawl.

    Why are they doing this? Who is paying them?

  • Budd Campbell

    3 years ago

    WHAT'S THE MATTER, SIDNEY? IS IT TIELEMAN, ... OR CLARK?

    Sidney Ball:
    "Interesting that Bill Tieleman's comment to Mark Crawford's site is about the Liberals playing politics with the carbon tax. ... "

    Let me see if I understand this. Bill Tieleman is a political consultant by occupation, who works for labour and community groups, once worked for former Premier Glen D. Clark, and has never made any secret of his NDP affiliations. He has written columns stating that the BC Liberals are playing politics with the carbon tax, and the NDP should return fire, should play the role of an Opposition, which is the position to which they were elected.

    Sidney thinks that's wrong and shameful. Why? To the degree that Sidney is one of those people who styles himself "an environmentalist" and "an urbanite", I wonder if his dislike of Tieleman is an extension of a distaste for Tieleman's ex-boss, Glen Clark? Environmental and urbanista poseurs have been making it painfully clear for years that they detested and loathed Clark for his labour and populist orientations with a passion.

  • realisticman

    3 years ago

    No Matter What

    Report: Canada safest from climate change
    28 Jul 2008 | Author: Jeanette Wiemers,

    Index ranks countries on vulnerability to effects of climate change

    Some countries with the most greenhouse gas emissions are also the ‘safest’ in terms of vulnerability to climate change and its impacts, says Maplecroft’s Climate Change Risk Report. Of the 168 countries ranked, three-fourths of the 20 most vulnerable were found in Africa (where carbon emissions are the lowest), while the US (the world’s largest emitter) came in only 12th most at-risk. Canada was ranked the least vulnerable and the “best haven from climate change”.

    http://www.climatechangecorp.com

  • G West

    3 years ago

    Very convincing!

    Generally the folks who design these jokey little indexes have never lived in the places they rank and rate.

    Furthermore, their fanciful and feckless predictions come at a fairly stiff price for users in the little 'investor' community they address their 'predictions' to:

    The risk assessments and country scorecards in the (Maplecroft) report are “designed to help decision makers in business, government and international organisations assess climate change risks, right down to the level of individual locations and regions.”

    I suspect none of the British 'expert's who design these little scorecards have ever tried to grow grain in Palliser's Triangle or survived a winter in the Yukon.

    If things get really nasty, my money's on the folks in Africa who know how to survive a ten year drought; people who aren't already spoiled to the point where they couldn't care less about the fact their neighbours are homeless in a paradise like the Lower Mainland.

    Generaly speaking such 'predictions' are about as worthwhile as most investment advice. For ordinary people who need to make a living and feed their families I think such reports about the unknown are about as realistic as Gordon Campbell's wet dreams about the future of this province.

    From what I've seen, much of the ceo's positive spin is turning into a bad dream stretched across the highway at Portueau Cove.

    Funny how reality has a way of bringing the high-flying promoters down to earth.

  • ME2

    3 years ago

    GWest

    Generalisations are always risky, Garth, and such is the case with your detrimental contrasting of African cultures with ours :

    "If things get really nasty, my money's on the folks in Africa who know how to survive a ten year drought; people who aren't already spoiled to the point where they couldn't care less about the fact their neighbours are homeless in a paradise like the Lower Mainland."

    Quite an astounding statement, I think, since I know of no instances in the Lower Mainland of our practicing "necklacing", of genocidal ethnic cleansing ; of mobs burning out unwanted immigrants - to merely begin a listing of the tribal inheritance Africans are subject to.

    To be sure, there are excellent humans among Africans, but I don't know of any local African movement by which they seek to raise the living standards of those outside the "tribe", as we do for FNs and for unfortunates within our own.

    To bad Beers has no standards re fanciful hyperbole.

  • G West

    3 years ago

    ME2 - just to clarify

    I certainly wasn't meaning to be critical of Africans. I was only referring to the unfortunate fact that the people of that continent have had to survive, in my opinion, under more protracted and dire circumstances than have Canadians.

    I was trying to point out that, when push comes to shove, the reference provided by another poster (Realisticman) immediately above my comment was, again in my view, fanciful nonsense.

    I think the proposition that Canada is uniquely placed to thrive and survive under the continuing pressures of global warming is meaningless and conjectural - especially coming from the source quoted in Realisticman's reference.

    That's all. When it comes to ethnic cleansing and genocide, I think we here in North America can teach the world a thing or two as well. As to the other point hinted at in your post…well, perhaps I’d simply suggest that the King of the Belgians, the Boers, the British and Cecil Rhodes might have had a thing or two to do with the situation in Africa…not to go back as far as the slavers of Portugal and the slave owners of America – but not to ignore them either.

    As for our own treatment of the poor and the homeless here in British Columbia…my remarks stand. In the midst of excess the condition of the handicapped, the disadvantaged, the young and the poor is a blight on this province and ALL its people.

  • realisticman

    3 years ago

    Ethics Schmethics

    I wouldn't expect some people to be interested in a report by an independent organization interested in ethics.

    Quote:
    ClimateChangeCorp.com is an independent news website, dedicated to providing high quality news and analysis on climate change to companies around the world. We produce a regular news feed specific to climate change as well as features and opinions from the world’s leading climate change experts. We are affiliated with Ethical Corporation, www.ethicalcorp.com, an independent publisher and conference organiser specialising in business ethics.

    As for our African friends, some people might like to remember;

    Quote:
    Mauritania
    An 800-year-old system of black chattel slavery thrives in Mauritania.

    Estimates of the number of black Africans enslaved in Mauritania range from 100,000 to as many as one million. Chattel slavery, in which one person is owned as another's property, has existed in Mauritania for 800 years-born out of racism and a skewed version of Islamic fundamentalism. Slaves are raised to believe that serving their Arab-Berber masters is a religious duty, and most remain in bondage their entire lives.

    Sudan

    Sudan means "land of the blacks" in Arabic, and for centuries black Africans were abducted in Sudan as part of the Arabian slave trade. Slavery has deep roots in Sudan, and black southerners have been targeted by northern slave raiders for centuries. Over 100,000 remain in bondage today, serving as domestics and concubines.

    Check out Ghana & Benin too. Slavery didn't end during the Civil War. Today, 27 million men, women, and children endure brutal working conditions for no money and under the constant threat of beatings, torture, and rape. http://www.iabolish.org/

    Don't forget the Spanish.

    Quote:
    Spanish law defined slavery as form of labor in the colonial economy rather than in racial or ethnic terms. Unlike the English, the Spanish used white European slaves and imposed slavery as a sentence for crimes committed by whites.

    I guess Idi Amin's 'fun with hammers' was all the Brit's fault, as is 'modern' Zimbabwe.

    Quote:
    Inflation champ Zimbabwe lops 10 zeros off currency - 30 Jul 2008
    Zimbabwe's official inflation rate, highest in the world, is 2.2 million per cent a year.

    I mean, who needs independent ethical reporting and studies?

  • G West

    3 years ago

    My list wasn't intended to be exhaustive

    Furthermore, it was the Maplecroft report (which was referenced above) to which I was responding.

    My understanding of Idi Amin's background is that he received his training in the British Army.

  • ME2

    3 years ago

    RMan

    And let's not forget that the slaves out of Africa were brought to the American /British ships by Interior tribes who had specialised as slavers for thousands of years.

    Just as we are not the ultimate source of all that is good, neither are we the source of all that is bad, either.

  • ME2

    3 years ago

    Rick W

    You write :

    "I wouldn't expect some people to be interested in a report by an independent organization interested in ethics."

    And cite :

    "www.ethicalcorp.com, an independent publisher and conference organiser specialising in business ethics."

    Well, I'd question the "independance" of your source, Rick. Since the site offers only warmist news/opinion and nothing to the contrary - not even an admission that such exists - I have to wonder about the funding of Ethical Corp and/or its objectivity.

  • realisticman

    3 years ago

    ME2

    Actually, that was my quote, not RickW's.

    I agree with you you regarding objectivity, in fact I'm sure that one could write a successful thesis on whether or not absolute objectivity even exists. Some would say that Ethical Corp is an oxymoron in itself but it is interesting and so very au courant.

  • ME2

    3 years ago

    RMan

    Caught again. Why does it always have to be you, RMan?

  • realisticman

    3 years ago

    A coincidence I'm sure

    Had he come across it RickW might have called foul.

    • The discussion for this story is closed. No more comments can be added.