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1 - Global warming
2 - Dependence on
foreign energy
3 - Trade deficit
4 - Pollution from non-
renewable fuels
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Grade-A Slobs
This entry was posted on 11/14/2007 8:27 PM and is filed under Air pollution,Leadership,Energy dependence,Global Warming,Economy,Action,Tax Shifting.
Had a great (and fired-up) conversation with a member of my Rotary Club at our meeting today. One of his points (paraphrased) -- "most people don't have an understanding of the external costs of using fossil fuels."
He's right.... it is this very fact that has us in the mess we're in with respect to global warming, our dependence on foreign energy, air pollution, our landfills, and many others. When we buy a car, a gallon of gasoline, or a personal computer do we pay the external costs related to the greenhouse gases emitted, the ground-level ozone formed, or the disposal of the car or PC? Nope.
When talking with others....please "play this up." Dave and I came to the conclusion (very astutely, we think) that if U.S. citizens gave this some thought, enacting a federal tax shift would gain steam. Another external cost of using oil -- oil spills like the one last week in the San Francisco Bay. Who's paying for the efforts to clean this up? If that ship had been loaded with, say, wind turbines....no problem.
Definition of Externality by Dr. Paul M. Johnson, Auburn University (excerpt)
An externality exists whenever one individual's actions affect the well-being of another individual -- whether for the better or for the worse -- in ways that need not be paid for according to the existing definition of property rights in the society. An "external cost" or "negative externality" results when part of the cost of producing a good or service is born by a firm or household other than the producer or purchaser.
An "external benefit," or "positive externality" results when part of the benefit of producing or consuming a good or service accrues to a firm or household other than that which produces or purchases it.
Examples: If one neighbor decides to repaint his house and spruce up his yard so he can get a better price when selling it, he also at the same time is slightly improving the market value of other houses in the neighborhood, creating a "positive externality" benefiting his neighbors. On the other hand, another neighbor who is a grade-A slob and lets the external appearance of his house run down creates a "negative externality" by depressing the attractiveness and thus the market value of the whole neighborhood.
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With respect to global warming, the fact is that we (the U.S.) are acting like grade-A slobs. From an entry on Apathy.net -- per capita emissions of CO2:
U.S. citizens - 42,460 pounds each
U.K. citizens - 21,714 pounds each
Chinese citizens - 10, 318 pounds each
What effect have our greenhouse gas emissions (GGE's) had on our "neighborhood?" (the earth) Ask Bangladesh. Or, take a look at your insurance premiums. We can't stop global warming ourselves, but as a huge developed country with the largest per capita GGE's among large countries (I recently read that Qatar has larger per capita GGE's), we are not doing anything significant to limit our GGE's AND we've snubbed international agreements, so why should other countries like China do anything??
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Please Google "Tragedy of the Commons."
Excerpt from Tragedy of the Commons Re-stated by Jay Hanson
....Most importantly, Hardin illustrates the critical flaw of freedom in the commons: all participants must agree to conserve the commons, but any one can force the destruction of the commons. Although Hardin describes exploitation by humans in an unregulated public pasture, his commons and "grass" principle fit our entire society.......
This is precisely the situation we're in. The best way to rise out of the "Grade-A Slobs" category with respect to global warming? Enact a phased-in, federal tax shift from income to non-renewable energy.
We're not slobs; time to give this some thought.... and act. The sooner an escalating problem is addressed, the easier it is to fix.
   
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