Misinformation: Senator Wyden's carbon tax proposal
- Sep 27, 2021 2:26 pm GMT
"It’s projected that making polluters pay -- when combined with clean energy tax credits -- would lower the cost of clean electricity for Americans,” Senate Finance Committee Chairman Ron Wyden said in a statement to Bloomberg News Friday. “I’ve worked on this for years, and have continued to develop the proposal as part of my menu of options for the caucus."
MISINFORMATION: Let's start with this claim "making polluters pay". Mr. Senator, electricity prices in wholesale markets don't make the "polluter pay" - let's be honest and clear - "carbon taxes make the consumer pay". Wholesale electricity prices are determined using a uniform clearing process that sets the price of electricity at the marginal unit's offer price (usually a fossil fueled generator), which in your design would result in higher electricity prices to all electricity consumers. The marginal generator, and all of the other owners of cleared units will thank for you for SIGNIFICANTLY raising their revenues at the SIGNIFICANT expense of your constituents and all other electricity consumers.
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