The passage by the house of what is widely called the climate bill illustrates a number of the challenges faced by American society in addressing any of its problems.
The bill, historic (“revolutionary” was Massachusetts’s Democratic Congressman Ed Markey’s assessment) in its creation of the first carbon regulations in the country, was a far cry from what many had called for as necessary to address the need to reduce greenhouse gas generation over the next few decades. So much so that some Democrats opposed it as not tough enough.
At the same time there are voices decrying it as a radical job killer, a shift of wealth to foreign nations or just too much government. West Virginia Congresswoman Shelley Moore Capito criticisms covered a wide range of her own constituents concerns, “”It is a national energy tax that will burden consumers, burden businesses, and particularly burden the lower-income families in this country — particularly the lower income. It picks regional winners and losers, with coal-dependent states like mine, West Virginia, bearing the brunt of this bill,”
So what do you make of this? Well let me suggest that what we have here is the result of democracy, as currently constituted and practiced in the United States. Those with power and influence, which is mostly derived from how things have been done, are doing their best to maintain that income producing advantage by shaping and eroding the aspects of the bill while those who see their interests served best by “a fundamental change” in our energy generation and use fight to change them.
Examine for instance the coal state concerns. If your livelihood has always been based in taking something out of the ground and selling it around the nation, hearing about how its base costs are going to be assessed and the price raised in a manner that will cost your customers more, your business will be dealing with such impacts. If you are a coal miner, you are among the lower income families and the idea that you will pay more for heating your house while the value of the element you extract will be made less is threatening.
At the same time, coal states have enjoyed a century of tax revenues and stability thanks to geographical accident. Nobody in West Virginia worked to make it the Saudi Arabia of coal, and while one can say it hasn’t’ made the state rich, it has made some people very wealthy, and no doubt that wealth has helped elect Capito.
Another big influence in this bill’s evolution was big agriculture, namely corn producers. Corn, which has gone from being a key product in our diets to being a major component of a number of industry sectors including energy, generates sufficient profit that it was able to get the administration of carbon dioxide emissions in the bill shifted from the Environmental Protection Agency to the Department of Agriculture. The EPA, which even under the Bush administration was perceived to be less business friendly than the DOA, at least has experience monitoring atmospheric gases. The DOA has experience generating them.
Other changes to the bill included dropping the goal from a 20% reduction over the next decade to 17% in the same time frame. And there is plenty of debate among those who are fully committed to control of CO2 as a means to defer or mitigate a crisis whether or not even the upper number is sufficient to do so. What comes through any such process today is, as one elected representative labeled it, ‘a product’. Indeed a product of compromise, which is one definition of politics- “the art of compromise”. And compromise has produced most of the results we like to think of as the best nation on earth.
The bigger picture is actually illustrated by the case of water softeners in California, and personified in the Culligan International, best known for the “hey Culligan man” ad campaigns from the last century. Water softening uses salt to change the characteristics of the water people get from the taps in their homes. That salt ends up in municipal sewer lines, making the waster water more difficult to reuse, eroding the infrastructure as well as eventually raising the salt level in the aquifer. Regulations in number of California communities are impacting the water softening business. Controlling the output of the devices, or shifting to other technologies or services to eliminate the downstream costs all threaten the existing businesses.
It is a classic case of externalities not being accounted for in our society, either in legal or economic systems. The same is at issue for the coal and corn related segments of our society. Successful capitalism has expanded itself right up to the boundaries of the closed system that is water, air and climate. Whether it is mothers wanting milder acidity in the water they wash their families clothes and faces in, or the price of keeping our homes comfortable, the larger systems and patterns of cause and effect have taken a back seat to the immediate and personal ones.
So whether or not the bill becomes law, is mutated further by whatever the Senate passes, and then is ‘reconciled’ by joint committee, is not as significant as the fact that in spite of overwhelming public opinion, national security and prosperity issues related to our current way of generating and using energy calling for change, existing cash flows are being directed to influence Congress to sustain those cash flows.
Should a climate bill be passed, its impacts upon the price of energy may be secondary to the number of jobs it will facilitate in alternative research and implementation. Those jobs may or may not be in West Virginia, and therefore Congressperson Capito will need to adapt as much as the current participants in coal mining. Coal won’t go out of business in even the most radical climate legislation discussed. Neither will oil or gas. But the statements of their lobbyists and elected spokespeople will make it seem that the price of energy was just fine until this law was proposed.
We all know that isn’t true. We know that we need to address our security in sending billions to the middle east for oil. We know that we need to support our long term future prosperity by ending our dependence on finite energy sources. And doing both of those will also address what is within our control in the area of climate.
The advantages that coal, corn and Culligan have had in establishing their places in the economy were the results of what was known then. What we know now is that all of those activities take place at a scale and scope that is difficult for those of us living today to grasp, much less those who made the choices and decisions about accounting for and assigning responsibility for ‘externalities’ in centuries past. We can’t know all the results of any course of action we take in a large complicated system, be it the economy or the climate. But that is no reason to not take any action.
I recommend- Paul Krugman in the NYTimes
Josef Hebert with AP
and for those with a big appetite- all the analysis in detail you can possibly absorb from The Breakthrough Institute.