The following video and audio podcasts look at resistance by the US oil and coal industries to measures to curb the consumption of oil and coal. Despite the clearly estabilised link between burning fossil fuels and global warming, many in the two industries reject, or at least question, the evidence. After all, it is in their commerical interests to promote the consumption of fossil fuels!
Elsewhere in the USA, interesting scientific developments are taking place to combat global warming. One measure is the production of ‘green oil’ produced from algae. Growing the algae absorbs carbon from the atmosphere.
In few areas are economic arguments so intertwined with political ones. The podcasts look at some of the issues.
Energy policy divides in the US BBC News, David Shukman (2/11/09)
America’s energy policy dilemma BBC News, David Shukman (2/11/09)
Texas takes on green energy BBC News, Roger Harrabin (1/06/09)
Ethical Man: Green revolution in Texas BBC Newsnight, Justin Rowlatt (11/3/09)
Climate plans part of wider battle over American freedom Ethical Man (Justin Rowlatt) blog (BBC) (3/11/09)
Obama urges climate change effort BBC News (3/11/09)
Al Gore on tackling global warming BBC Newsnight (4/11/09)
Al Gore on beating the ‘oil habit’ BBC Today Programme (4/11/09)
Questions
- To what extent will the free market result in a shift to greener energy sources? Why will any shifts towards greener fuels still not result in the socially or environmentally optimum use of fossil and ‘green’ fuels without government intervention?
- What policies could governments adopt to internatlise the externalities involved in burning fossil fuels?
- How suitable are cap-and-trade policies (tradable permits) for tackling global warming? What conditions are necessary for such policies to be effective?
- Why is tackling climate change politically difficult for (a) individual countries and (b) the world as a whole? How is game theory relevant to your analysis?
Until changes in their governments, both the USA and Australia were unwilling to sign up to the Kyoto Treaty on climate change. But things are changing. In both countries, cap and trade bills have been proposed by their administrations (see A changing climate at the White House). In the USA, President Obama’s bill would see the imposition of carbon quotas aimed at achieving a reduction in greenhouse gas emissions by 2020 of 17 per cent, with emissions trading allowing an efficient means of achieving this. In Australia, Kevin Rudd’s Labor government plans to introduce quotas and emissions trading in 2011 to achieve a 25 per cent reduction in greenhouse gases by 2020.
But are there lessons to be learned from the European Emissions Trading scheme? The following articles look at some of the issues.
Cap-and-trade off Houston Chronicle (23/5/09)
US climate change bill passes key hurdle Telegraph (22/5/09)
Obama climate change bill defies Republicans to pass key committee Guardian (22/5/09)
Cap and Trade Debate CNN (video) (22/5/09)
Historic emissions trading scheme bills tabled Sydney Morning Herald (14/5/09)
A pattern behind fire and flood Sydney Morning Herald (25/5/09)
Interview with Australian Climate Change Minister, Penny Wong ABC (21/5/09)
Can Copenhagen achieve much? ABC PM programme (includes link to audio) (20/5/09)
Plunging price of carbon may threaten investment Independent (9/2/09)
EU ETS emissions fall 3% in 2008 Environmental Expert (18/5/09)
European investors call for carbon trading revamp businessGreen (20/5/09)
The carbon scam 21st Century Socialism (19/5/09)
Economy and the environment: growing pains Guardian (17/5/09)
See also
European Union Emissions Trading Scheme Defra: emissions trading
Questions
- Discuss the merits and problems of cap-and-trade systems for reducing carbon emissions in an efficient and effective way.
- Is the price of carbon a useful indicator of the success or otherwise of cap-and-trade schemes to reduce greenhouse gas emissions?
- In what ways does the current recession (a) aid, and (b) hinder the introduction of tougher schemes to tackle global warming?
In a major break from the policy of the Bush administration, President Obama has announced that the US government will regulate greenhouse gas emissions. The US Environmental Protection Agency has found that CO2 emissions pose a ‘threat to public health and welfare’. This finding allows regulation to be imposed.
At the end of March the Democrats in the House of Representatives released a draft climate change Bill. Central to this would be a system of tradable permits. ‘Under this program, covered entities must have tradable federal allowances for each ton of pollution emitted into the atmosphere.’ (See 4th article below.)
U.S. in Historic Shift on CO2 Wall Street Journal (18/4/09)
Obama to regulate ‘pollutant’ CO2 BBC News (17/4/09)
US says CO2 is a danger to human health Financial Times (18/4/09)
House releases draft climate change bill Power Engineering International (31/3/09)
U.S. Carbon Emissions Trading Core of Clean Energy Bill Environment News Service (31/3/09)
Environmental Capital (see also) Wall Street Journal (31/3/09)
Who’s going to get the carbon pollution credits? Christian Science Monitor (14/4/09)
Questions
- To what extent is the EPA ruling compatible with the bill proposed by the Democrats?
- Is a ‘cap-and-trade’ system (i.e. tradable permits) the best way of dealing with climate change?
- What lessons can the USA draw from the European Emissions Trading Scheme in designing its own tradable permits scheme?