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Waves of the Future - The Magian Age

Climate Change, Non-Renewable Resources, Energy, Contaminants, Carbon Pricing...

The Global Warming Component of
the Green Economic Environment (GEE)

The global warming component of this structural strategy is based on revenue-neutral taxation and is essentially free for consumers and taxpayers.


We already know that the approach works and just how powerful it can be. See A Proven Strategy for Global Warming.

The GEE would involve taxing fossil fuels to raise their price. Because it is a revenue-neutral solution, people would see other taxes drop in compensation.


See also Book II of the Waves of the Future Series

Global Warming, CO2, Carbon Emissions,
and Managing Green and Renewable Energies


From the 2008 experience alone, we know that rising the price of oil could shift markets to renewable energy and would promote conservation, which would reduce CO2 and other carbon emissions.


Under Henderson's structural strategy, a tax would be added to the wholesale price of oil to maintain its cost around a certain level, for example $125/barrel. This price could be set lower initially and later on adjusted to a level high enough to achieve the carbon emission targets prescribed under international agreements.

No new trading system would be needed and no detailed assessment or reporting would be required from most businesses. The strategy is fully scalable and could be implemented gradually to give the economy and everyone time to adjust.

Of course, the price of gasoline would go up, but people would have more money to spend from a drop in income and other taxes (see Revenue-Neutral Taxation).

The strategy could be applied to other fossil energies and work in the same way. It would enable green and renewable energies to sort themselves out according to their carbon intensiveness. For example, ethanol produced from corn would become expensive and fall out of favor as its production requires large amounts of fossil fuels which would be taxed.

Henderson's structural strategy is a solution that would call for very little bureaucracy and minimal enforcement (see Cap-and-Trade vs the GEE). We already know that it works and could deliver what we need for global warming (see A Proven Strategy for Global Warming).


A View of the New Green Society and Sustainable Economy

Additional information* on the subject:


Q&A: Emissions Trading

A look at the EU's experience with their own emissions trading system.
Source: guardian.co.uk, Mark Milner.

Cap and Trade versus Carbon Tax

Excellent YouTube video on the advantages of revenue-neutral carbon taxes over cap-and-trade. AIER Global Climate Change.
Source: American Institute for Economic Research. Kenneth P. Green.

Structural Solutions vs. Cap-and-Trade

This is our own analysis. It provides a comparison between cap-and-trade and a structural environmental strategy.
Source: Waves of the Future.

Ottawa Think-Tank Calls B.C.'s Carbon Tax Canada's "Most Effective"

Source: Canadian article examining British Columbia's carbon emission policies.
Desmogblog.com. James Glave.

* See our Terms and Policies
More information: Environmental Defense Fund Environmental Working Group