“The easiest, most obvious, and most efficient way to employ the power of the market in solving the climate crisis is to put a price on carbon.”

The Obstacles We Need To Overcome

Chapter Fifteen

The True Cost Of Carbon

p. 319 more than 18 million tons of CO2
MIT Energy Initiative, “Largest Coal-Fired Power Plants of Top Coal-Based U.S. Electric Utilities.” Available at http://web.mit.edu/mitei/docs/reports/table-plants.pdf
p. 320 We put 90 million tons of it into the atmosphere every 24 hours
Drew Shindell, phone interview with author, September 1, 2009.
p. 320 As Jonathan Lash, president of the World Resources Institute, recently said
Jonathan Lash, “Statement of Jonathan Lash, President, World Resources Institute, To the U.S. House of Representatives Committee on Energy and Commerce,” January 15, 2009. Available at http://pdf.wri.org/lash_statement_to_energy_commerce_2009-01-15.pdf
p. 324 John Maynard Keynes led a group of economists
Geoff Tily, “John Maynard Keynes and the Development of National Accounts in Britain, 1895‚Äì1941,” Review of Income and Wealth 55, no. 2 (June 2009): 331-359.
p. 324 they never intended for it to become widely used
Geoff Tily, “John Maynard Keynes and the Development of National Accounts in Britain, 1895‚Äì1941,” Review of Income and Wealth 55, no. 2 (June 2009): 331-359.
p. 324 GDP vs. GPI: “Product” vs. “Progress” [Graphic]
Robert Costanza, Maureen Hart, Stephen Posner, and John Talberth, “Beyond GDP: The Need for New Measures of Progress,” The Pardee Papers, no. 4 (January 2009): 13. Available at http://www.bu.edu/pardee/publications/pardee-paper-004-beyond-gdp/
p. 325 the portion of that spectrum that's made up of light that we can see with our eyes is a very tiny slice
NASA, “Electromagnetic Spectrum,” last accessed November 3, 2009. Available at http://imagine.gsfc.nasa.gov/docs/science/know_l1/emspectrum.html
p. 325 Physicist Werner Heisenberg discovered that
Heisenberg, Werner, Physics and Philosophy: The Revolution in Modern Science (New York, Prometheus Books: 1999). Originally published in 1958.
p. 325 Psychologist Abraham Maslow once said
Abraham H. Maslow, Psychology of Science: A Reconnaissance (Maurice Bassett Publishing: 1966): Chapter 2.
p. 327 As he put it, the gross national product
Robert F. Kennedy, “Remarks of Robert F. Kennedy at the University of Kansas, March 18, 1968,” available at http://www.jfklibrary.org/Historical+Resources/Archives/Reference+Desk/Speeches/RFK/RFKSpeech68Mar18UKansas.htm
p. 327 Adam Smith wrote The Wealth of Nations in the same year that
Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, available at http://www.econlib.org/library/Smith/smWN.html
p. 331 A wise economist named Herman Daly said decades ago that
Constance Holden, “The Greening of the World Bank,” Science 240, no. 4859 (June 17, 1988): 1610-1611. Available at http://www.sciencemag.org/cgi/reprint/240/4859/1611.pdf
p. 331 Thirty-five years ago, the average holding period for stocks... obsession with research analysts
James Montier, Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance (John Wiley & Sons Ltd: 2007): 277.

Henry Blodget, “You're an Investor? How Quaint,” The Business Insider, August 8, 2009. Available at http://www.businessinsider.com/henry-blodget-youre-an-investor-how-quaint-2009-8
p. 331 Average Holding Time of Stocks [Graphic]
James Montier, Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance (John Wiley & Sons Ltd: 2007): 277.

Henry Blodget, “You're an Investor? How Quaint,” The Business Insider, August 8, 2009. Available at http://www.businessinsider.com/henry-blodget-youre-an-investor-how-quaint-2009-8
p. 332 Many experts in corporate finance believe that 75 percent or more of a corporation's true value
Richard Dobbs, Keith Leslie, and Lenny T. Mendonca, “Building the healthy corporation,” McKinsey Quarterly (August 2005). Available at http://www.mckinseyquarterly.com/Building_the_healthy_corporation_1637

Morin, Roger A. and Sherry L. Jarrell, Driving Shareholder Value: Value-Building Techniques for Creating Shareholder Wealth (McGraw-Hill, 2001): p. 56.

Roland J. Burgman, David J. Adams, David A. Light, and Joshua B. Bellin, “The Future Is Now,” MIT Sloan Management Review, October 26, 2007. Available at http://sloanreview.mit.edu/business-insight/articles/2007/5/4952/the-future-is-now/
p. 332 As Abraham Lincoln said at the time of America's greatest danger
Roy P. Basler (ed.), Abraham Lincoln: His Speeches and Writings (Cleveland, Da Capo Press, 2001): 688.
p. 335 The McKinsey Quarterly reported that a survey of business managers found
Richard Dobbs, Keith Leslie, and Lenny T. Mendonca, “Building the Healthy Corporation,” McKinsey Quarterly (August 2005). Available at http://www.mckinseyquarterly.com/Organization/Strategic_Organization/Building_the_healthy_corporation_1637

Also available at http://www.cfo.com/article.cfm/4166686
p. 335 McKinsey added
Richard Dobbs, Keith Leslie, and Lenny T. Mendonca, “Building the Healthy Corporation,” McKinsey Quarterly (August 2005). Available at http://www.mckinseyquarterly.com/Organization/Strategic_Organization/Building_the_healthy_corporation_1637

Also available at http://www.cfo.com/article.cfm/4166686
p. 335 Six years ago, a report from the World Resources Institute and Sustainable Asset Management
Duncan Austin, Niki Rosinski, Amanda Sauer, and Colin le Duc, Changing Drivers: The Impact of Climate Change on Competitiveness and Value Creation in the Automotive Industry (World Resources Institute and Sustainable Asset Managment, October 2003). Available at http://www.wri.org/publication/changing-drivers-impact-climate-change-competitiveness-and-value-creation-automotiv
p. 335 The True Value of Our Ecosystem [Graphic]
Robert Costanza, Ralph d'Arge, Rudolf de Groot, Stephen Farber, Monica Crasso, Bruce Hannon, Karin Limburg, et al., “The value of the world's ecosystem services and natural capital,” Nature 387 (May 15, 1997): 253-260.
p. 336 A Brief History of the Price of Oil [Graphic]
U.S. Department of Energy, Energy Information Administration, “EIA World Nominal Oil Price Chronology: 1970-2007.” Available at http://tonto.eia.doe.gov/country/timeline/oil_chronology.cfm
p. 337 Many coal deposits in the eastern U.S.
Mireya Navarro, “E.P.A. Plans Closer Review of Mountaintop Mining Permits,” The New York Times, March 24, 2009. Available at http://www.nytimes.com/2009/03/25/science/earth/25mining.html
p. 337 has already poisoned a number of community drinking water sources
U.S. Environmental Protection Agency, “Mid-Atlantic Mountaintop Mining,” last updated October 20, 2009. Available at http://www.epa.gov/region3/mtntop/
p. 337 have also destroyed many jobs for coal miners
Amanda Paulson, “In coal country, heat rises over latest method of mining,” The Christian Science Monitor, January 3, 2006. Available at http://www.csmonitor.com/2006/0103/p02s01-ussc.html
p. 337 largest source of mercury pollution in the world
United Nations Environment Programme, The Global Atmospheric Mercury Assessment: Sources, Emissions and Transport (Geneva, UNEP, December 2008): 2. Available at http://www.chem.unep.ch/mercury/Atmospheric_Emissions/UNEP%20SUMMARY%20REPORT%20-%20CORRECTED%20May09%20%20final%20for%20WEB%202008.pdf
p. 337 a potent neurotoxin that accumulates in fish... single largest cause of health warnings
“The Mercury Story,” Now (PBS, January 21, 2005). Available at http://www.pbs.org/now/science/mercuryinfish.html
p. 339 the second largest volume of toxic waste produced annually
Earth Justice, “Coal Ash Pollution Contaminates Groundwater, Increases Cancer Risks,” September 4, 2007. Available at http://www.earthjustice.org/news/press/007/coal-ash-pollution-contaminates-groundwater-increases-cancer-risks.html
p. 339 In December 2008, more than a billion gallons broke free
Earth Justice, “Kingston Coal Ash Disaster: First 100 Days,” last accessed November 3, 2009. Available at http://www.earthjustice.org/library/features/kingston-coal-ash-spill-first-100-days.html
p. 339 The predictable pattern of ice-pack melting in mountain regions
Monica Machicao and Eduardo Garcia, “Global warming melts Andean glaciers toward oblivion,” Reuters, June 7, 2007. Available at http://www.reuters.com/article/environmentNews/idUSN0725512820070608

“Glaciers are melting faster than expected, UN reports,” Science Daily, March 18, 2008. Available at http://www.sciencedaily.com/releases/2008/03/080317154235.htm
p. 339 the value of these and other ecosystem services worldwide was calculated in a 1997 study
Robert Costanza, Ralph d'Arge, Rudolf de Groot, Stephen Farber, Monica Crasso, Bruce Hannon, Karin Limburg, et al., “The value of the world's ecosystem services and natural capital,” Nature 387 (May 15, 1997): 253-260.
p. 339 These fluctuations drive the price of coal up and down in tandem with oil
For example, see: Energy Information Administration, “Weekly All Countries Spot Price FOB Weighted by Estimated Export Volume (Dollars per Barrel),” Petroleum Navigator. Available at http://tonto.eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WTOTWORLD&f=W

Energy Information Administration, “Historical Average Weekly Coal Commodity Spot Prices (Dollars per Short Ton),” Coal News and Markets. Available at http://www.eia.doe.gov/cneaf/coal/page/coalnews/coalmar.html
p. 339 Most oil reserves in the world today are not owned privately by companies
Justin Blum, “National Oil Firms Take Bigger Role,” The Washington Post, August 3, 2005. Available at http://www.washingtonpost.com/wp-dyn/content/article/2005/08/02/AR2005080201978.html
p. 339 they routinely cut back production quotas to drive the price of oil higher
Christopher Johnson, “OPEC set to keep oil production quotas unchanged,” Reuters, March 13, 2009. Available at http://www.reuters.com/article/GCA-Oil/idUSTRE52C1VY20090313
p. 340 they are highly conscious of their strategic interests
Tara Patel, “Saudi Arabia Warns on Rapid Shift to Renewable Energy,” Bloomberg, March 16, 2009. Available at http://www.bloomberg.com/apps/news?pid=20601072&sid=a75qPBBGS0aM&refer=energy
p. 340 we saw an impressive beginning of a shift to renewable sources
“Amory Lovins,” Business Week, March 23, 2001. Available at http://www.businessweek.com/bw50/content/mar2001/bf20010323_307.htm

Jeff Johnson, “Building a Sustainable Economy,” Chemical and Engineering News 87, no. 30 (July 27, 2009): 17-22. Available at http://pubs.acs.org/cen/coverstory/87/8730cover.html
p. 340 systematically dismantled the remaining government programs
Joseph Romm, “Winds of Change,” Salon, May 17, 2008. Available at: http://www.salon.com/news/feature/2008/05/17/wind_power/
p. 340 symbolically removing solar panels already bought and paid for from the roof of the White House
Dave Burdick, “White House Solar Panels: What Ever Happened to Carter's Solar Thermal Water Heater?” The Huffington Post, January 27, 2009. Available at http://www.huffingtonpost.com/2009/01/27/white-house-solar-panels_n_160575.html
p. 340 we saw this cycle repeated... quickly dried up
Tom Wright, “Winds Shift for Renewable Energy as Oil Price Sinks, Money Gets Tight,” The Wall Street Journal, October 20, 2008. Available at http://online.wsj.com/article/SB122446199550848849.html

Mark Scott, “High Oil Prices Create Renewables Boom,” Business Week, August 11, 2008. Available at http://www.businessweek.com/globalbiz/blog/europeinsight/archives/2008/08/high_oil_prices.html
p. 342 estimated the reduction at between $27 and $73 billion per year
Mark A. Delucchi and James J. Murphy, “US Military Expenditures to Protect the Use of Persian Gulf Oil for Motor Vehicles,” Energy Policy 36 (2008): 2253-2264.
p. 342 buildings in the United States now account for almost 40 percent
U.S. Green Building Council, “Green Building Research,” last accessed November 3, 2009. Available at http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1718
p. 343 The coal and oil companies... might hurt their profits
OpenSecrets, “Presidential Candidates: Contributions by Sector,” 2008. Available at http://www.opensecrets.org/pres08/sectorall.php?cycle=2008

Politico, “Avalanche! Agenda fuels ad landslide,” April 13, 2009. Available at http://www.politico.com/news/stories/0409/21134.html
p. 343 Arthur Laffer... joined with... Bob Inglis... they wrote in 2008
Bob Inglis and Arthur B. Laffer, “An Emissions Plan Conservatives Could Warm To,” The New York Times, December 27, 2008. Available at http://www.nytimes.com/2008/12/28/opinion/28inglis.html
p. 343 How Cap And Trade Works [Graphic]
Patterson Clark, “Cap and Trade: How It Would Work,” The Washington Post, February 26, 2009. Available at http://www.washingtonpost.com/wp-dyn/content/graphic/2009/02/26/GR2009022600572.html
p. 344 How Cap And Trade Helped Reduce Acid Rain [Sidebar]
EPA, “Acid Rain Program 2007 Progress Report,” January 2009. Available at http://www.epa.gov/airmarkets/progress/docs/2007ARPReport.pdf
p. 345 Sweden... has enacted both measures... overwhelmingly positive
Carbon Tax Center, “Where Carbon Is Taxed,” last updated June 8, 2009. Available at http://www.carbontax.org/progress/where-carbon-is-taxed/
p. 345 in early 2007, the conservative-dominated U.S. Supreme Court formally ruled
Massachusetts v. Environmental Protection Agency, 549 U.S. 497 (2007). Available at http://supreme.justia.com/us/549/05-1120/
p. 345 the new head of the EPA... may result in regulation
John M. Broder, “E.P.A. Clears Way for Greenhouse Gas Rules,” The New York Times, April 17, 2009. Available at http://www.nytimes.com/2009/04/18/science/earth/18endanger.html
p. 346 been enacted by the state of California and several other states
Union of Concerned Scientists, “What are renewable electricity standards?” Renewable Electricity Standards Toolkit, last accessed November 3, 2009. Available at http://www.ucsusa.org/clean_energy/res/aboutwhat.html
p. 346 China and the nations of the European Union... done so, too.
Union of Concerned Scientists, “What are renewable electricity standards?” Renewable Electricity Standards Toolkit, last accessed November 3, 2009. Available at http://www.ucsusa.org/clean_energy/res/aboutwhat.html