Comment by SamoyedFurFluff
7 hours ago
Doesn’t one major fund reducing investment in fossil fuels and increasing investment in renewable energy precisely migrate towards the notion of helping solve demand and encourage technological breakthroughs and innovation?
I think the right way to go about this is to tax consumption. The most efficient one would just be a co2 tax, to not favoritize some emission over others. This is mostly fine in western rich countries, and we already do this to some extent by putting extra taxes and fees on petrol, carbon emissions and stuff.
Becoming reliant on countries you dont want to be reliant on, and pretending we dont desperately need this to get the wheels turning is a strategic blunder.
Higher global fossil fuels costs have strong negative effects on peoples welfare, especially in poorer countries. Whenever we get high oil/gas prices, we get price jumps on artificial fertilizer, food, transport and energy. Everything gets more expensive. Its straight up national emergency when something threatens supply of oil and gas in many of these countries when we get events like closing of the hormuz strait.
> I think the right way to go about this is to tax consumption. The most efficient one would just be a co2 tax, to not favoritize some emission over others.
I too thought this for a long time. But after watching taxes on consumption basically be a non-starter in the US for a long time, I’m not so sure anymore. Gas taxes are also regressive, which means the people who feel it the most are the ones least able to pay it. Raising the gas tax while retaining one’s elected position is challenging in the US to say the least. In most places in the US, driving is not a luxury.
To be clear, I think we need to move off of fossil fuels to the greatest extent possible as soon as possible. For those with means, it is a great moral failing to continue to drive a gas guzzler and heat one’s home with fossil fuels when there are better affordable alternatives. I’ve been driving an EV for nearly four years; it is now not just more affordable than a gas powered vehicle, it is more convenient. For me, the cherry on the top is that I also do not pay for electricity, because I took advantage of the pre-Trump II era solar tax subsidy and built a massive one.
The tax break was good for me, and it’s a shame that is gone (I paid off that panel in 5 MONTHS with the help of the subsidy), but tax breaks really only help the relatively wealthy. We need an investment in infrastructure for the masses to break their dependence on fossil fuels. I’m not really sure what that is.