Not sure why it is that The Guardian is doing a better job at reporting on the environment and the economy here in the US, but for yet another look at Carbon Taxes, one of the big questions or at least seemingly perpetual rants of the climate skeptics / deniers is that addressing Climate Change will destroy our economy. Needless to say then this has been something that I continue to spend some time reading up on and trying to figure out what the economic impacts of addressing Climate Change would have on the economy. If the solution to Climate Change and weaning ourselves off fossil fuels is a matter of finance, then yes it makes some sense that prices would rise a bit, we’re paying in advance for something that will save us money in the future. Its easy to understand but not so easy to calculate out. Dana Nuccitelli who has been writing for the Guardian published some time ago his summary of the findings from Regional Economic Models for The Citizens Climate Lobby, which does an in-depth analysis of how a Tax on Carbon would affect the US economy. It’s an excellent piece.
More than all of that thought, I was happy to find a chart (graph actually) that expressed what I was looking for, would energy prices rise and by how much and would they taper off and when? Obviously the answers are much more complicated than the ones I’m about to give, relative to the Tax levied and many other variables, but here’s the basic. For electricity, prices will rise for about 7 years, give or take, looking to cap out at around 25%, then plateau and begin to fall again in year 12, this makes sense as per the savings by switching to renewables, takes a few years to really kick in as the economy re-powers itself.
If you want to follow the whole report, findings and model, beware, its more than 125 pages in length, a little dry, but very informative.