Monday, October 27, 2008
Energy Policy Dilemma - McCain vs Obama
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10:15 PM
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All other issues between Democratic candidate Barack Obama and Republican candidate John McCain aside, the two actually have general similarities when it comes to energy this election. They both support "energy independence" as well as a large-scale reorganization of the U.S. economy in the name of climate change. So you could say that the candidates are just different shades of green.
The Issues:
Global Warming:
Both believe it is man made. Both McCain and Obama also support the taxation and regulation on greenhouse gasses, which is one of the top priorities of the Democratic party. A "cap and trade" system is supported by both candidates, which would put an economy-wide limit on emissions that would decline every year. This would allow businesses to buy and sell permits that stand for the right to emit the gasses that are causing global warming. The business would then pass the cost down the chain eventually to the consumer.
The main difference here: McCain wants to lower emissions by 60%, while Obama is more optimistic shooting for 80%.
Cap and Trade:
McCain is more lenient. Obama is strict.
McCain would allow built-in incentives to induce behavioral changes for a postcarbon emission economy. His plan also includes offsets, which allow businesses meet emission targets by paying others to reduce carbon usage. These offsets are more market friendly but would result in fewer real emission cuts.
Obama really want to make a change, but that is going to require a much stricter stance on the environment. Here's what he wants to do:
-increase ethanol and biofuel production requirement to 60 billion gallons a year by 2030, which is 67% higher than the current goal
-double fuel economy standards for cars and trucks and require new vehicles to be flex-fuel. This means vehicles will be able to run on any blend of gasoline and ethanol
-require all new buildings be carbon neutral by 2030
-detail a ten year, $150 billion project of research, directed by the government, into alternative energy
Although it is strict, at least we will be able to catch up to countries like Brazil - a third world country, by the way - who have cars that run on gasoline, ethanol, natural gas, and diesel, or any combination of these. (And on a side note, Ford already has these flex cars in Brazil, and they are VERY popular)
Carbon Auctions:
Obama's approach is more efficient. Obama wants to auction off all permits on a "polluter pays" principle. Once the permits are out there they automatically have a dollar value and have the potential to raise trillions of dollars. this money would be used to offset and economic drag caused by the carbon crackdown, go towards Obama's "green-collar jobs" program, or to compensate South and Midwest states that would be hit hard by a cap and trade program.
McCain, on the other hand, wants to give out permits to industries, such as utilities, and introduce auctions over time.
Nuclear Power and Electricity:
McCain is all for increasing the use of nuclear power, which does not release any carbon emissions or other greenhouse gasses. He also plans on putting this on the fast track and creating 45 new nuclear power plants by 2030.
Although Obama hasn't ruled out nuclear power, he wants to ensure the safe treatment and storage of nuclear waste - think Chernobyl. Instead he wants utilities to generate 25% or more of their power from renewable sources, such as wind and solar, by 2025 through his "renewable portfolio standard."
Both want to modernize the the electricity grid through smart metering and distributed storage.
Fossil Fuels:
During McCain's 2000 presidential bid he was skeptical about increased drilling, but he currently favors expanded drilling, as seen by his "drill, baby, drill" offensive. He would also give states who allowed drilling off their coasts a share of the royalties.
As for Obama, although he opposed offshore drilling, he changed his stance in August and said he could support it if it was part of a larger environmental energy package. Obama has also called for a windfall profits tax on the American oil majors.
I love to surf, and I don't want my nice beaches ruined. If McCain wins it is almost 100% that offshore drilling will happen. If Obama wins then the Democrats will most likely reinstate the long standing moratorium on offshore drilling, which was pun in place after a large oil spill off the Southern California coast killing miles of coastal ecosystems. Energy policy - just one more reason to vote for Obama.
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