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It is counted as a valid means of subsidy by both the EU and WTO. The UK was singled out for increasing fossil fuel subsidy by the EU, when UK gov reduced the V
by NeedMoreTea 7y ago
It is counted as a valid means of subsidy by both the EU and WTO. The UK was singled out for increasing fossil fuel subsidy by the EU, when UK gov reduced the VAT rate on domestic fuel bills. As the grid moves to renewables the level of subsidy declines.
The UK kept that reduced rate on domestic fuel when they brought in a low carbon price floor (another bonus of EU membership). That managed to take almost all coal out of UK power generation - there's only three plants left, all marked to close in the next couple of years. It's already starting to have impact on gas's viability.
As different rules apply to vehicle fuel, and domestic fuel, individual behaviour hasn't been much affected, and cities are still full of dirty air from internal combustion. UK has been particularly weak at improving air quality in the last decade or so.
- jjoonathan 7y agoDefinitions are contextual. I think it's 100% reasonable for the EU and WTO to define subsidy in such a way that it can include untaxed externalities. I'm comfortable with that definition myself. I still think it was deceptive for imglorp to transplant that definition into a context where it wasn't mutually understood and then leverage the misunderstanding to promote an incorrect picture of reality. > We are spending more than $5T annually on fossil subsidies. All you have to do is divert that elsewhere. "Spending" and "divert" imply a cash flow, not a flow of value in the form of a collection of externalities. That's relevant. Redirecting funds is a different political beast from increasing taxes. To be clear, I want a carbon tax. Let's promote it with logic, not with clumsy attempts at deception.
- wutbrodo 7y agoAs someone who believes in action on climate change and is very willing to take the consumption and taxation hits that that implies, this is what frustrates me most about the climate conversation: I've already "priced in" the existence of stubborn skeptics and greedy people, but the fact that even the "good guys" compulsively lie and distort the facts when it comes to climate change makes changing public opinion seem insurmountable (and this is how you change policy in a democracy). It's at times like these when the criticism of my fellow leftists as religious adherents[1] sounds the most uncomfortably true: people talk in terms of facts but think in terms of dogma and heresy. There's no claim in support of the dogma that should be suppressed and no claim in favor of the heresy that should be acknowledged. It reminds me of nothing so much as the tenor of criticism of Trump, especially early in his term. The man is already a monster! You don't need to keep lying to make him look like one, and all it does is turn of people who mightve agreed with your legitimate criticism! [1] To be clear, I have no reason to think that our counterparts on the right don't do this too. It just makes more of an impact to realize that everyone around you is dishonest and stupid than it does to realize that everyone in a relatively alien subculture is.
- NeedMoreTea 7y agoFor it to be quite so left/right is uniquely American. In the UK a majority of supporters of both main parties want more dramatic action on climate. The right have yet to respond with a credible policy - going with "ignore it whilst talking loudly about their having committed to carbon neutral 2050", i.e. all mouth and no trousers. Why the heck would climate get a uniquely honest political conversation? Politicians of all colours lie, obfuscate and distort the facts on all issues all the time, whilst continuing to hurtle in a direction most of the country's voters would prefer not. Unless the US experience has been very different, most votes will be for least worst, not in favour of either as tribal loyalties mostly died last century, only really remaining tribal with the elderly. It's one of the reasons for such a deep mistrust and disillusionment of politics and may have contributed to some of the world's "surprise" results lately, along with so many polls being proved wrong. Honesty and politics are oil and water. The honest discussion is usually elsewhere.
- NeedMoreTea 7y agoSure, it's more accurate to note fossil receives $5t in visible and invisible subsidy, but as more nations start to move to carbon pricing, their absence becomes a far more overt policy-driven subsidy. So I'm a little more flexible in a web discussion than I would hope for from a finance minister. Except actual politicians, of all colours, are even more creative in the hoops jumped to imply wholly incorrectly their own tax raising policies are not a tax hike such that it becomes a logic and fact free zone. Personally, I want the same as you, perhaps a little further as I'd like those externalities baked into the price of everything, and required to be picked out before sale. Maybe required on every label like how calories or salt content is picked out on food. Then I can choose logically or at least knowingly. I don't think politicians are ever willing, after a little industry lobbying, to give us that... Which applies to far too many issues, not just climate.
- xyzzyz 7y ago> Sure, it's more accurate to note fossil receives $5t in visible and invisible subsidy No, that's absurd way to put it. It's like saying that shipping industry receives trillions of dollars of invisible subsidy due to not having to rent the ocean water the container ships float on. Yes, if oceans didn't exist, shipping would be quite a bit more expensive, and you can even do the math and put a number on that, but the fact is that if you tried to "divert" these "invisible" subsidies from shipping companies, and taxed them for the trillions of imputed income, you'll soon find that those trillions do not line up shipping companies pockets. The only reason to call it "subsidy" is to imply that the companies are "unfairly" benefiting, but unless these externalities have actual cost to the economy instead of just imputed carbon/water tax, you'll find no resources to divert.
- NeedMoreTea 7y agoOf course they have an actual cost the economy. In health impacts from polluted air, in impacts from changed climate, increasing intensity storms, floods and such. There's been more than enough studies showing impacts. The ocean analogy isn't such a far stretch either - the increasing levels of pollution and emissions from container traffic, using a particularly dirty fuel and an industry that flushes tanks and oil rich pollutants in international waters has an impact on water quality, fish stocks and other ocean life. Roads are a subsidy on cars as they are paid for by general taxation rather than specifically on vehicle use. Those externalities should all be priced in to discourage impactful behaviour, and encourage truly sustainable behaviour, on the sole viable planet we currently have. At the very least we can make a poor choice knowingly.