Climate Change solutions

1. Climate Change solutions

2. The Target � by 2050

3. A Futuristic Vision What the energy-climate era might look like Read the handout on 20 E.C.E. and then answer the following questions. What would a futuristic �SBB� and �energy internet do�? How could these technologies lower your energy costs and energy use? How could they make the use of renewable energy more feasible?

4. What Is Needed to Achieve the Target ? Innovation: creating new technologies for generating clean, reliable, and abundant electrons and machines that will use them more efficiently (more work per unit of power). Conservation: cutting back on the amount of energy we use.

5. Why the Current �Free Market� Is Not the Answer Our energy market is not �free� from government Examples: We charge a 54 cent/gallon tax on sugar ethanol imported from Brazil, but only a 1.25 cent/gallon tax on oil imported from Saudi Arabia. We pay billions in tax incentives to oil, coal, and gas companies, but intermittent, tiny tax incentives for renewable energy. Energy companies currently have little incentive to invest in R & D for renewable energy Examples: R & D by electric utilities companies is .15% of revenues; 8-10% is normal for most competitive industries. Exxon-Mobile recently recorded the largest annual profit in history (40 billion), yet invests only .1% in renewable energy R & D.

6. How Can Government Stimulate Market Innovation? There are several options. How would the following options stimulate innovation? A gasoline tax A floor tax on oil or gasoline A tax on carbon emissions �Feebates� for automobiles Tax breaks and subsidies for companies that invest in renewable energy Government funding for research in renewable energy and energy efficiency Government investment in mass transit Reimburse utility companies for customers� reduction in energy use Further government regulation of energy use A cap and trade system

7. What is �Cap and Trade�? The Government places a cap on the total amount of CO2 that can be created in the U.S. within a given time frame. Companies receive shares that allow them to create a certain amount of CO2 emissions through either government issuance or auctions. Companies can sell their shares to other companies if they do not need them (rewarding energy efficiency and renewable energy use).

8. What Sort of �Further Government Regulation� Might Help? Examples: More stringent C.A.F.E. standards post-2016 Require stricter energy efficiency standards for appliances Reduce speed limit to 55 Laws against businesses leaving lights on after hours Require electronic equipment to be made from recyclable materials Require people who buy 5000+ sq. ft. homes to purchase 100% renewable energy Require new buildings to meet stricter standards for energy efficiency

9. But Wouldn�t More Government Regulation Put U.S. Businesses at a Disadvantage Relative to Foreign Companies in Countries with Less Regulation? Not if the U.S. placed a carbon tariff on such countries (in effect, making them pay whatever costs such regulation creates for U.S. companies) By rewarding energy-innovative businesses, the U.S. should actually be at an advantage because we have the universities and research laboratories needed to lead the way in technology innovation.