Cross-posted from The Breakthrough Blog
Three weeks before the Senate is scheduled to vote on global warming legislation, presidential candidates John McCain and Hilary Clinton have both called for temporarily suspending the 18-cent gasoline tax. The proposal is anathema to anyone who is pushing for disincentives on dirty energy. But instead of just railing against political pandering, we should take this as an opportunity to rethink our politics. The big question is: how do we finance the transition to a clean energy economy?
The Center for Climate Progess’s Joe Romm answers that a carbon price is not enough. Environmentalists often look to Europe - and its $38 per ton carbon dioxide price - as the gold standard of climate legislation. But Romm warns that the U.S. lacks the political will to reach that high of a carbon price anytime soon. What’s more, the New York Times reported last week that Europe has been experiencing a surge in new coal plant construction, despite its high carbon price.
Romm’s solution is an immediate moratorium on the construction of new coal plants while we wait for the carbon price to render coal economically irrelevant. But a moratorium on coal would increase energy prices - a tough sell politically during a recession. So how do we motivate people to pay more?





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