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.
TRUTH: polluters don't pay, electricity consumers pay. Polluters will be incentivized to continue polluting because "it handsomely rewards all generator owners" to have a carbon tax while punishing those consumers that do reduce their carbon footprint with Electric Vehicles - they end up paying more for electricity when they do the "right thing". Talk about unintended consequences.
MISINFORMATION: "would lower the cost of clean electricity for Americans"
TRUTH: Empirical data from Alberta shows that electricity prices increased by 9% for all consumers when carbon tax policies were implemented. There is ample evidence available to refute your claim.
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