Earth Day, And A Sensible Energy Policy Remains Far Away
The question is how can we reduce greenhouse gas emissions, make ourselves less dependent on foreign oil, and promote a stronger economy. The answer is obvious to most economists -- raise the relative price of carbon and return to the revenues to those most adversely affected.
Although the House may adopt a carbon cap-and-trade bill this summer, the Senate has already rejected any movement in that direction. On April 1, by a 67-31 vote, the Senate adopted Senator Mike Johanns' (R-NE) amendment to the budget resolution rejecting the use of reconciliation to help pass a carbon cap-and-trade bill. That effectively doomed the bill for this year.
The only way the Senate will budge on raising carbon prices is if environmentally concerned Americans apply sufficient pressure to make it happen.