Categories
Economics of mitigation Predatory delay United States of America

1971, Jan 6: the whiff of sulphur (taxes) and 20 more years of #PredatoryDelay

On this day 51 years ago the idea of – gasp –  putting a tax on something that was causing environmental damage (cuh-razy communist idea) was kicked around within the Nixon administration.

We know this thanks to a really great book called Behind the Curve, by Joshua Howe, which looks at the climate issue before it became famous (see review in Environmental Politics here [paywalled]).

“As early as 1970 the Nixon administration considered levying a tax on SO2 tied to energy production from coal.”

(Howe, 2014:148)

And the footnote has it – John C. Whitaker to Ken Cole, memorandum, Jan 6 1971 “Sulfur Dioxide Emissions Charge,” memo for John B. Connally [sic] Jr. secretary of treasury, Nov. 11 1971. The tax was never implemented, in part because the Office of Management and Budget showed that it would work too well, taxing SO2 emissions out of existence before the program could generate enough revenue to meet Nixon’s pro-business political goals. (Howe, 2014:244) 

Why this matters – we are told that this is all impossible to do anything about – over-emphasised complexification, as part of the predatory delay.  Of course, climate is a much bigger/wider issue than acid rain, and carbon (in the form of fossil fuels) is far harder to replace in the production chain than CFCs or sulfur.  But the basic point – that you can put up taxes on things you are trying to discourage, as long as you think about/do something serious about  the distributional effects on the poorest and most vulnerable – should be entirely uncontroversial. As we will see, this has not been the case.

What happened next?

It would be another 20 years before anything substantive got done about sulphur in the US, with the 1990 Clean Air Act.  The question  of whether emissions trading mattered, or whether technological developments independent of a price-on-sulphur has given academics, activists and policymakers something to write and talk about too. 

Further reading

Bohr, J. (2016) The ‘climatism’ cartel: why climate change deniers oppose market-based mitigation policy. Environmental Politics, Vol. 25, 5.  https://doi.org/10.1080/09644016.2016.1156106

Brigham Daniels, Andrew P. Follett, and Joshua Davis, The Making of the Clean Air Act, 71 HASTINGS L.J. 901 (2020). Available at: https://repository.uchastings.edu/hastings_law_journal/vol71/iss4/3

Gabriel Chan, Robert Stavins, Robert Stowe, and Richard Sweeney (2012) THE SO2 ALLOWANCE-TRADING SYSTEM AND THE CLEAN AIR ACT AMENDMENTS OF 1990: REFLECTIONS ON 20 YEARS OF POLICY INNOVATION. National Tax Journal, 65 (2), 419–452


Lohmann, L. 2006. Carry On Polluting: Comment and analysis in New Scientist. The Cornerhouse, 2 December.

Categories
Activism Australia UNFCCC United States of America

1992, Jan 3: Greenpeace vs POTUS on Climate Change

On this day, 30 years ago, to coincide with the visit of President George HW Bush to Australia, Greenpeace Australia took out newspaper adverts of the Statue of Liberty with smoke billowing from her torch, calling on the United States to drastically reduce its carbon emissions. 

The context for this was that negotiations for the climate treaty to be signed in Rio later that year were well underway. And all the signs were that the US would play a spoiling role. 

This matters, because that’s exactly what Uncle Sam did. The French said rightly, that targets and timetables for emissions reductions by wealthy countries should be included in the text of the treaty. The Americans replied, “if you put those in, we’re not coming.” The French blinked, reasoning that timetables and targets could be inserted later. They were at Kyoto, vastly inadequate, but there. And then the Americans didn’t ratify and withdrew from the process.

We are still living with the consequences of this. And our children, other people’s children, other people’s children will all also live with those. Not to mention all the other species we “share” this planet with. 

It’s always worth remembering that these agreements that we live with now were the result of previous proposals, compromises and in this case -as in many others – naked veto power.