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10/16/2011

A cap-and-trade system won’t effectively boost renewables – a portfolio is necessary

UCS 7 (Union of concerned Scientists, “Renewable Electricity Standard FAQ”
http://www.ucsusa.org/clean_energy/clean_energy_policies/the-renewable-electricity-standard.html#6) AMK

Why not rely just on emission caps and trading programs to meet environmental goals?
Emission caps and trading programs are critical for reducing harmful pollution from power plants. But they do not
necessarily help new technologies that provide long-term benefits overcome market barriers. An EIA study found that a 20
percent RES would reduce the cost to consumers of meeting four-pollutant reductions from power plants by $4.5 billion in
2010 and $31 billion in 2020 compared to meeting the emission reductions without an RES.14 By providing additional
alternatives to switching from coal to natural gas, renewable energy sources restrain price increases in natural gas to power
plants and other users.

A2: Carbon Tax CP

A carbon tax would decrease consumer spending and tank the economy—Canada proves.

Vancouver Sun in 8 (“The carbon tax is an economic folly”, 6-26-08,
http://www.canada.com/vancouversun/news/editorial/story.html?id=2454f7eb-d8ac-4aab-9453-43d286fc570c

The purpose of the carbon tax to take effect on Tuesday is to change consumption patterns. It imposes penalties on consumers
who choose to heat their homes, drive their cars or turn on their lights. Few consumers have the disposable income to convert
to solar heating, buy hybrid vehicles or adopt other expensive technologies touted by the eco-lobby.
Heat, transportation and electricity are essential, so consumers will cut back elsewhere. They will spend less on food, toys,
clothes, TVs, grooming aids and home renovation as a greater proportion of their income is diverted to energy-related goods
subject to the carbon tax. As the tax takes an ever-bigger bite of personal incomes, consumer spending will decline, dragging
the economy down with it.
Meanwhile, companies will weigh the impact of the carbon tax on their production costs. The spike in commodity prices is a
two-edged sword. Those involved in resource extraction can anticipate higher selling prices for their metals and minerals, but
these operations are energy-intensive. A punitive tax added to already astronomical diesel fuel prices may be enough to wipe
out any return on investment.
Building new plants in B.C., where production will be actively discouraged by pointless taxes, makes no business sense when
other jurisdictions are more welcoming to industrial development.
Layer all this economic foolishness with the prospect of higher interest rates to fight inflation and we have a recipe for
economic stagnation.
As it happens, economic stagnation is the goal of the environmental movement.

RPS Aff

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7 Week Juniors – CPHS Lab

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