Government, you are going to have to make me reduce my emissions

OK here is my mea culpa on climate action. I am guilty.

Yes, even though I have read a lot about climate change and the urgency of effective action and have been duly alarmed,  even though I am active in climate groups, even though I submitted to the Climate Commission, I still lapse.

This week I caught myself driving to the next town to do shopping I couldn’t do in my town. When I found myself driving the second day my thinking was, “Well I should have planned my week better, written my shopping list more carefully, but really I enjoy the outing. And I couldn’t have caught the train because my hip is too sore for all the walking.”

Then yesterday in preparation for an upcoming trip to the South Island I drove for the third time to buy new trousers although I know it is better to buy second hand ones and pick up something I ordered the previous day.

Cars are handy when the weather is inclement and when your walking is compromised. I like the convenience and the comfort. I topped up with petrol so that I am ready for more driving. Just one more trip please….

Well I guess the government is going to have to make me reduce my driving. I already eat climate friendly because I have to for my heart health to keep my ageing body alive, so no guilt there. But I never examine whether the grapes or any other food I buy is flown here out of season.

Given that I regularly fail to keep my carbon footprint low, and there are probably many others like me, I reckon voluntary reduction of our carbon footprint is just too difficult an ask. The tobacco industry always argued it didn’t need any legislation banning advertising because a voluntary agreement was in place. Farmers don’t want legislation, they will do it voluntarily. Pull the other leg!

The simple way government can do it is to ration either our energy use or our emissions. Rationing energy is easier than rationing emissions. A simple scheme has been worked out ten years ago in UK where you are given an energy quota each year, quotas are tradable and your quota reduces each year.  Jack Santa Barbara has summarised your own greenhouse gas quota scheme here.

The inventor of Tradable Energy Quotas (TEQs) Dr David Fleming was an economist and so he knew:-

  1. Economic growth is dependent on energy growth.
  2. Therefore the economy will decline if energy use declines.
  3. If the economy doesn’t keep growing it becomes unstable.

So his TEQS scheme was designed to prevent instability as the economy shrank. Communities with these restrictions would naturally cooperate and the economy would adjust. The “degrowth” movement now gaining momentum. This term is defined to mean degrowth of economies of the overdeveloped nations, actions to prevent financial inequality there, and growth in developing nations.

So don’t ask me to reduce my carbon footprint voluntarily. Make me!

 

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Why are TEQs better than Fee and Dividend or Cap and Trade?

I am a recent convert to Tradable Energy Quotas (TEQs) invented by the late David Fleming in UK in 1996 for effective climate action. See

I have a theory that the reason it seems superior to FEASTA’s Cap and Trade, Canada’s Carbon Fee and Dividend and all others is because Fleming was a historian/environmentalist who later in life got a PhD in Economics. He understood how the economy works. This meant that he saw the close correlation between energy use and economic growth. He knew that if the economy doesn’t grow it collapses because it is designed like that.
So he took all of this into consideration when he invented TEQs, a managed energy descent framework that wouldn’t result in economic collapse, widespread unemployment and social unrest. He was also aware that rations must be tradable or else a black market develops.
His idea is that government gives an entitlement of energy units (they could be denominated in emissions too) for each adult, and high energy users would have to buy them on the market from low energy users. Businesses and Government etc have to buy theirs on a weekly tender and this sets the price. Hence it delivers climate justice like Fee and Dividend. But it differs in many ways which his colleague Shaun Chamberlin summarised well in his 2015 post here. For effective climate action, every citizen needs to be involved to change the way we live, work and play, so Fleming’s scheme involves every citizen.
While the Fee and Dividend system is simple to administer because in Canada they just impose the fee on about 1350 mines and ‘preparation sites’, (and it is passed down to wholesaler, retailer and customer), there is still no built-in incentive to adjust their lifestyles or to cooperate to adapt to live with less energy. TEQs is not complicated to administer. The weekly tender auctions are just like those for Government bonds and units can be added and subtracted just like Airpoints or Flybuys or Snapper card. Almost everyone has a mobile phone.
They also have to spend extra money to support small, rural and remote communities. I am not sure if TEQs would require this, but I believe that remote rural communities would tend to thrive again.
I am keen to recruit people to a regular Zoom call until we all learn more about it (and this includes economists!) We are thinking out a strategy and have been discussing whether it could be implemented at a local body level. We have had one call and are getting good people involved. We know we have to be able to defend it, compare it with other systems and answer awkward questions so all brains are welcome!!
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