Cajun: it’s obvious how you get the utility to figure out what to charge their customer for their electricity. The utility would pay the carbon tax on ALL the fuels they buy. The end user pays what the electricity cost to generate, which includes the effect of these FUEL taxes. You tax the FUELS, not the energy!
Do that and all of a sudden, wind and solar and tidal and geothermal and hydro and anything else you can do to generate electricity WITHOUT fossil fuels starts to make economic sense- but ONLY if the apparatus to make use of that energy- all of it- is worth the investment. All this argument about “embodied energy” and “lifecycle costing” would go away. If solar PV cells actually contain more fossil energy than they displace in their useable life, it would be easy to determine that based ENTIRELY on their purchase cost, which would include the carbon tax on all their fossil energy inputs. No more complex, politically charged lifecycle calculations with unjustified assumptions or inputs or outputs forgotten accidentally on purpose to provide the most palatable answer...and preferably, no more governments attempting to pick technological winners and losers based on lobbying effort, buzzword-worship and the vain hope of a magical “technological fix” for our energy woes at some point in the future.
Zdas04: how I ever got to agree so completely with someone who reads Atlas Shrugged once a year like the bible is totally beyond me, but there you go- I agree with your last post pretty much in its entirety. Don’t for a moment take that as any kind of endorsement of Rand’s “objectionableism” though! I suspect we’re WORLDS apart in regard to what each of us thinks is the limit of the legitimate role of government, for sure.
Any attempt to solve the problem of fossil fuels which does NOT use the market as its primary tool will be an abject failure. But creating an artificial “carbon credit” cap&trade “market” is a recipie for speculation, hoarding, price manipulation, fraud, graft and corruption- the worst features of real-world capitalism. A tax is far easier and cheaper to administer and suffers from these problems to a far smaller extent, though it is not immune to them. How to deal with the revenue from the tax is another matter entirely- but we at least have a chance to control it via our democratic institutions, and the object of the tax (consumption-reduction) will work even IF the money is squandered or stolen.