Article View: ca.environment
Article #30Re: Gas Tax Debate on NPR
From: Lorna Lueker
Date: Thu, 30 Jul 1992 23:29
Date: Thu, 30 Jul 1992 23:29
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[Ely Rabani here, via a different, functioning, account. Reply to erabani@ucsd.edu or rabani@sdbio1.ucsd.edu, not llueker@sdcc3.] In article <14ro5hINNrl1@hal.com> howard@hal.com (Howard Gayle) writes: > >Can anyone offer any evidence that politicians and bureaucrats >will "do the right thing," especially if "the public at large" >won't? Both public choice theory and history show that >politicians will try to allocate resources to further their own >interests. If wise and benevolent beings were available to >allocate fossil fuels, that would solve the problem. >Unfortunately, the only choice is between having the consumers >do it (i.e. a free market) and having the politicians and >bureaucrats do it. >-- >Howard Gayle Every now and then, policiticians an bureaucrats blunder or otherwise settle on something remotely like 'the right thing', but that's not exactly the right issue. History also shows us that they can be dragged into doing sensible things. Nixon, for instance, signed some (then) quite progressive environmental legislation. But rather than specific evidence, let's concern ourselves with paradigms of social action--limiting ourselves to only that which history provides example for is perhaps as likely to doom us to repetition as is ignorance. In terms of paradigms, there are at least a few problems with HG's analysis: 1. The fossil fuels market as it stands now is nothing remotely like a free market. Most large suppliers collude/cooperate on pricing and supply (OPEC), and significant direct and indirect subsidies externalize and otherwise redistribute the cost of use. Further, as is well established, the availability of alternative energies and alternate modes of transportation have been directly and indirectly suppressed. Especially in light of this latter point, just imagine the howls raised and the distortion to the general U.S. economy in which $0.25 of every $1 spent is spent on transportation, if truly free-market principles were imposed on the energy and transportation systems. 2. Even in the free market approach advocated, there are a number of conditionalites that affect a consumer's choices or options, such as the kind of car they drive or the local availability/degree of convenience of mass transportation. Note that an individual can't EFFECTIVELY avoid externalizing environmental costs--even if contributing to the Nature Conservancy or buying a relatively cleaner car are options--because these externalized costs have much more to do with the fact that everyone is taking part in a *system* that externalizes costs and no individual exertion can have more than the most infinitessimal marginal effect. (Note that this is not an argument agains such exertions as desirable and perhaps necessary--the point is that they are in no way sufficient.) HG's prefered course assumes that individuals--specifically assumed to greater or lesser extent to be maximizing their narrow, individual interests--will effectively be able, if they really try hard, to preserve common goods. We've heard that song before. Notice that no municipality leaves trash collection or sewage to the viscitudes of market economics or to the choice of individuals (whether or not they charge user fees based on volume or access.) 3. While it is in large measure true that politicians and bureaucrats (far from monolithic groups in any case) will allocate those resources they weild influence over in manners that promote and further thier own interests, those specific interests are neither fixed nor unalterable. One way such interests might change would be strict curtailment of private/corporate/PAC campaign contributions. Another would be an informed, concerned, educated and actually thinking electorate. At present we have the results of (quite literally, if one examines federal policy, strategic reserves and their justification, and--oh yes--military adventurism in the Persian Gulf) military-industrial complex influence on what is essentially an oligopoly of producers. So, HG is right that politicians and bureaucrats may have a perniscious effect on the energy and transporations systems, but this doesn't mean that they necessarily will in all possible circumstances--free market or otherwise. Without selecting specific cases, it's clear that most European countries have saner transportation policies, both from the point of view of moving people and goods, and of at least slightly mitigating environmental impact. 4. HG includes the conditionality that politicians and bureucrats aren't to be expected to do the right thing especially if the public at large won't. But (a.) the public at large hasn't exactly been offered the opportunity--since options are considerably circumscribed and again frustrated by the disconnect between individual actions and collective outcomes and (b.) for the most part we only get to vote for representatives and not commissioners or Department Secretaries: voting is a package deal, which considerably limits those options at least as much as sound bites and the one-party-two-right-wing system does. So it's not exactly a failure of individual self-discipline we're dealing with. The structure of the game provides disincentives to politicians and bureaucrats to 'do the right thing' except under extremes of public attention and the attendant embarassment, and the structure of the game for individuals either as voters or as consumers is far from that which permits comprehensive analysis or enlightened choices. Solutions are therefore not to be expected within any of these three games, separately or in aggregate, but (if at all) through changes in the structure of each of these games. --- Which brings me to the findings of the Energy Modelling Forum, a group of mostly economists, *funded mostly by the Fossil Fuels industries and the DoE*, which were recently reported on NPR's 'Living On Earth'. Their findings were that the economic impact of a Carbon Tax were far smaller than argued by the Bush Admistration (and their sponsors...) could be reduced further if phazed in--all ignoring any stimulation to the economy that might be effected with the revenue thus collected. The group is to formally announce its findings in September, according to the report, timed intentionally in advance of the election. Ely.
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Path: arc1-ca.pugleaf.net!sparky!uunet!usc!wupost!darwin.sura.net!mips!pacbell.com!network.ucsd.edu!sdcc12!sdcc3!llueker From: llueker@sdcc3.ucsd.edu (Lorna Lueker) Newsgroups: ca.environment Subject: Re: Gas Tax Debate on NPR Message-ID: <36324@sdcc12.ucsd.edu> Date: 30 Jul 92 23:29:46 GMT Sender: news@sdcc12.ucsd.edu Distribution: ca Organization: University of California, San Diego Lines: 119 Nntp-Posting-Host: sdcc3.ucsd.edu