OT: China To Implement Carbon Tax To Tackle Pollution
China should enact a carbon tax and raise fuel and electricity prices if it hopes to tackle the pervasive pollution that is a byproduct of breakneck growth, the Organization for Economic Cooperation and Development said Friday.
Replacing policies that push the cost of gasoline, electricity and coal below market prices and taxing pollution instead would raise money that could be spent on targeted poverty reduction, said the OECD, a grouping of 34 mostly high-income countries.
"You have to get rid of the things that are onerous on the environment, onerous on the budget, and absolutely regressive from an income distribution point of view," said Angel Gurría, secretary-general of the OECD. "Who uses more gasoline? The people who have cars. When you have a blanket subsidy you benefit the wrong people."
One of many options being considered is to increase the amount of ethanol blended into gasoline, which reduces CO2 emissions, but legislation would be needed to change current policies. According to the USDA, China used 4.6 million tons of corn and 1 million tons of wheat to produce ethanol in 2012. The majority of Chinese corn imports come from the US.
Ethanol is one of the best tools available today to reduce air pollution from vehicles. Ethanol contains 35% oxygen, and adding oxygen to fuel results in more complete fuel combustion, thus reducing harmful tailpipe emissions. Ethanol is a high octane fuel and its use displaces toxic octane boosters such as benzene, a carcinogen. Ethanol is a virtually sulfur free additive and is biodegradable. Thus, it’s easy to see why many states use ethanol to reduce vehicular emissions.
The People's Republic of China are pragmatic and not the slightest bit progressive. When the plan is presented they will not laugh in their quests faces . Ethanol is a ill-conceived idea that uses a lot of food to produce little energy at a very high price. I plan to start a position of LINE on April 15. By then a $300 tax refund should buy many shares .