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Posted Tuesday, November 10, 2009 3:24 PM

On Climate Change, Place Matters But So Does Ideology

Katie Connolly

Over at The Vine, Mark Murro and Jonathan Rothwell are considering the locational nature of climate-change politics, which is something I have been thinking about for a while. They argue that the average carbon emissions in each state helps determine how senators will vote on the Boxer-Kerry bill:

[Last week], the Senate Environment and Public Works Committee voted to report out climate legislation, with ten Democrats voting yes, one Democrat (Montana’s Sen. Baucus) voting no, and all of the Republicans boycotting. If you look at the vote tally (using Project Vulcan data), you find that the states of senators voting "no" emitted 29.4 tonnes of carbon per capita, and the states of "yes" voters emitted 13.3 tonnes per capita, compared with a national average of 20.9 tonnes per capita.

They've got some other data points to back their idea up, but I don't find the regressions particularly convincing. I tend to think the situation is a more complicated combination of philosophical and regional factors. Like Matt Yglesias, I think that ideology plays a role, but only when it comes to consumers. For example, people who live in Massachusetts use a lot of energy to heat their homes. They also more likely to be liberal, and less opposed to legislation that may increase their costs. They're personally or politically invested in combating climate change and may be prepared to fork out a few bucks in their quest to save the planet.

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Corporations don't share those ideological motivations. Their governing philosophy is purely capitalist. In other words, it's highly unlikely your local gas company wants to spend extra dollars on protecting the environment unless it is forced to. Their incentives are profit-oriented, and legislation that may increases the cost of doing business undermines that fundamental goal. That's the system, which is why regulation is often needed to align social and corporate interests.

As with most issues, Senators must navigate these tensions: the ideological proclivities of their voters versus the profit motives of businesses in their state. On climate change, geographically specific dynamics influence the equation. Natural resources, and the industries that benefit from them, tend to be clustered. If the state (or region) is a conservative one with a large energy industry, or a liberal state/region with a small energy sector, then it's a no-brainer for those senators. If it's a state like South Carolina that is conservative but stands to benefit in terms of jobs and economic activity from the expansion of nuclear power for example, then that's a trickier equation to balance. Harder still are those blue (or purple) states where there are fears that climate-change legislation may cost jobs in the coal or manufacturing sectors. There, the negative multiplier effect of potential job losses could outweigh ideological commitments to climate-change legislation, but figuring out the tipping point of that equation is a difficult task.  

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Member Comments

Posted By: Dredd (November 11, 2009 at 9:50 AM)

"All politics is local" is a statement made to try to simplify voting machinations, so why not "all weather is local" for a statement to simplify global climate conversations?

http://blogdredd.blogspot.com/2009/11/all-weather-is-local.html


Posted By: hsr0601 (November 11, 2009 at 5:25 AM)

Seeing the forest and a big picture !!

1.  To date, out of the earmarked $787bn in stimulus package , roughly $155bn dollars, not sufficient to reverse the trend of jobless rate, have been doled out. But,  away from job saving and creation, GDP growth etc, the added value on the stock market alone might stand at roughly $1trillion, which could help us see the forest in light of conclusion of the historic health care and sustainable energy act.

As always, focusing exclusively on up-front cost and subtracting its added value from equation, we will more likely be trapped in a small cage.

2.  The world-wide stimulus package to prop up the crumbling economy is an interim measure. For that, a long-standing and fundamental energy framework is urgently needed.

3.  The poor countries can't afford high fossil fuel costs, which will strain global economy.

4.  In recent years, the high oil price has taxed jobs word-wide, therefore job creation via developing sustainable resources is considered to be imperative, which might be a final focus of this great recession.

If the sustainable energy policy works against employment, EU should be suffering from the highest jobless rate by now, but the reality is the other way round.

5. Thankfully and  interestingly enough, 100s of Companies (with $13 Trillion) Are Demanding Strong Climate Deal in Copenhagen just like environmental activists, and a coalition of more than 500 Global Businesses is also demanding ambitious new climate deal.

6.  Those who are concerned about growing deficit are obliged to get engaged in energy fix actively.

7.  In the face of drastic dent in fossil fuels and soaring price of them, the hands-off policy reflects economic crash world-wide.

Probably it doesn't matter whether someone is on the upper deck of Titanic ship or not as the global economy is interconnected just like Internet.


Posted By: Nukeboy (November 10, 2009 at 11:36 PM)

"Corporations don't share those ideological motivations. Their governing philosophy is purely capitalist. In other words, it's highly unlikely your local gas company wants to spend extra dollars on protecting the environment unless it is forced to. Their incentives are profit-oriented, and legislation that may increases the cost of doing business undermines that fundamental goal. That's the system, which is why regulation is often needed to align social and corporate interests."

This is a common premis among liberals.  It is however, not entirely accurate.  While it is true that the main purpose for the management of a major corporation is to provide products and services in a way that maximizes shareholder value, maximizing sales is related to the perceptions that the consumers have about the corporation and its products or services.  In essence, the corporation just tries to give the consumers what they want, at the price that they are willing to pay.  If consumers want "green" energy, and are willing to pay the additional costs that are associated with it, someone will produce it.  The consumer is king, because they determine with their dollars which corporations are successful, and which aren't.  To suggest that "it's highly unlikely your local gas company wants to spend extra dollars on protecting the environment " is incorrect.  Your local gas company wants to provide consumers what they want, for a price that provides a profit margin that makes it worth it to be in business.  If people want cleaner energy and are willing to pay for it, the gas company will be happy to supply it. Government gets involved because most consumers don't care about these issues enough to pay the extra price.  Government intervention to "align social and coporate interests" is only necessary when the "social interest" as determined by the few, is not matched by the aggregate spending habits of the many (the market).

The other insinuation in this article is that profit oriented incentives are evil.  This concept is also incorrect.  The job of a coporate CEO is to maximize shareholder value (stock price).  I know that this sounds cold and hearthless, but consider the fact that almost everyone's retirement is tied to the stock market, most charitable trusts are tied to the stock market, etc.  If we want to maximize the standard of living for retirees, charitable trusts, endowments, etc, then we need CEOs to work hard to maximized the value of their corporations.  Rather than being evil, it's actually very beneficial to society as a whole.  People only make these investments in coporations for the purpose of maximizing their return, which has an effect on their future standard of living.