The Bogeyman of Higher Prices

The previous blog summarized the perspective of a conservative environmentalist who argues for tackling climate change. One of the tactics he proposes, which is anathema to conservatives bullied by tea party activists and Grover Norquist, is to impose a hefty tax on activities that generate greenhouse gases. Economists generally agree that this is a pretty effective way to get people to voluntarily change their behavior. For example, taxes on tobacco products have been shown to have disproportionate effects on smoking by teens, since they don't generally have the same amount of discretionary income as working adults. The increase in the price of gasoline due to the increased cost of oil has led to declines in miles driven in the US and a shift to more fuel-efficient vehicles.  In the medium-term, it should affect commuting habits and even suburban sprawl (although the housing crisis has been pretty effective, as well).


Although advocates for tackling climate change see this as good news, the economic concern is that higher prices for basic goods like electricity and transportation fuels take money away from other economic activities and increase the cost of most other manufactured goods. This is especially true in Hawaii, where most of our goods are imported over the ocean in large container ships. It's also disproportionately hard on the poor and small businesses. Thus, the ways in which we tackle climate change matter from a moral and religious perspective. Fairness, justice, and care for the poor and vulnerable are relevant values to consider alongside stewardship of Creation.


Having lived in California and now Hawaii, I know first-hand how a high cost of living constrains your choices in life and can be a real burden for those who are poor and economically insecure. At the same time, I know that people will voluntarily make tremendous sacrifices to achieve what they most value in life, including moving to California and Hawaii to enjoy the opportunities and quality of life they offer. Money is not the most important thing in life by a long shot, and our stewardship of Creation is or at least should be one of those basic things that is more important than money. 


As people of faith, we need to make and stress that argument when confronted with the "higher prices" bogeyman. Even within an economic perspective, our choices of how to spend our money should reflect the value we get from those expenditures. Just as the cost of sin taxes are justified by the tremendous benefits, we need to make the argument that taxing and regulating greenhouse gas emissions will yield tremendous social benefits to the things that really matter to us, things that we are willing to (and indeed do) sacrifice for all the time. At the same time, we should be aware of how these increased costs affect the poor and vulnerable, providing mechanisms to reduce this burden so that they don't have to make the choice of whether to eat or pay the electricity bill. There are numerous ways to address these concerns, and faith communities have a long history of direct action and advocacy for change in these areas. Thus, the IPL network can play an important role in the public conversation, the policy debates, and the concrete actions to change hearts and minds, change behavior, change institutions, and thereby change the world for the better.