How We Can Survive the Age of Energy Anxiety

By Peter Teague and Jeff Navin, The American Prospect. Posted July 3, 2007.

This article is reprinted from the American Prospect.

The camera pans in on a scene in a simple American bedroom. An elderly woman sits on the bed, getting dressed to venture out into the cold. She puts on an old coat, over the top of another coat, and then a scarf and hat. Just when we think she's going to get up, she turns off the lamp, lies down, and pulls the covers up.

Fade to black.

Imagine this 30-second ad, narrated by a familiar-sounding voice, describing the higher electricity bills and hardship millions of Americans will face if Congress votes to take action on climate change. Remember how quickly the insurance industry overcame widespread public support for health care reform and destroyed the Clinton plan for universal coverage? Meet the Harry and Louise of global warming.

The Other Global Warming Lesson from California

Environmentalists point to California's new regulations on greenhouse gas emissions, signed into law by Republican Governor Arnold Schwarzenegger, as a sign that federal action on global warming is inevitable. But, last November, California voters offered us another lesson about what it will take to craft politically sustainable solutions to global warming. This lesson has largely been ignored, but is arguably more important.

Proposition 87 would have imposed a tax on oil production in California to support $4 billion in expenditures to develop and promote alternative energy technologies. The ballot initiative, which began with strong approval ratings, and whose proponents spent almost $50 million to secure passage, was defeated by a ten-point margin. Why? Oil companies succeeded in convincing voters that it would increase gas prices.

A recent survey of public opinion research conducted by American Environics for the Nathan Cummings Foundation reveals just how sensitive voters are to energy costs.

It also clarifies the complexity of Americans' views on the interconnected issues of energy independence, global warming, taxes, public investment, and jobs. What begins to emerge from the data is a path through, an approach and a vision that might attract sustainable majorities of Americans bringing the power to enact and then defend comprehensive policies to solve global warming.

What the Data Reveals

Americans' anxiety over rising energy costs is a serious challenge to anyone seeking a solution to global warming. The anxiety is real, and the vast majority of Americans perceive these costs as causing financial hardship for their families. Proposals that raise energy prices risk triggering populist anger; Americans uniformly reject government efforts to increase the cost of gasoline or electricity as a way of encouraging certain kinds of behaviors.

Nobody disagrees that regulatory strategies alone will raise energy costs. And raising the price of carbon high enough to have a real effect on global warming -- by cutting emissions and by providing sufficient motivation for industry to invest in new technologies -- will raise energy costs significantly.

One example: The price for carbon debated in the 2007 Senate energy bill would set a price of $7.00/ton, rising to $15.00/ton by 2050; experts estimate that it would take a cost of $150.00/ton to produce the technology necessary to make clean coal a viable future energy source.

With a regulatory-only approach, we will end with a debate between environmentalists arguing about the cost of global warming, and industry economists telling Americans how much more they'll pay for everything from electricity to gasoline to consumer products. And they'll argue that these higher prices will result in job losses.

Policy makers are aware of this challenge and have added provisions to their regulatory bills that are aimed at easing voters' fears. There are proposals for tax rebates and offsets and even the creation of a "Climate Change Credit Corporation" to help voters with the anticipated increase in consumer energy costs.

The trouble is that the bills either provide tiny amounts to authorize studies of the problem, or they remain silent about how much help voters can expect. It's important to remember that the proponents of Prop. 87 made a well-supported case that the initiative wouldn't raise energy costs at all. Its defeat demonstrates that it's going to take more than good intentions about global warming and vaguely-worded proposals to convince voters.

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Peter Teague is Director of the Environment Program at the Nathan Cummings Foundation and former environmental advisor to Senator Barbara Boxer. Jeff Navin is Managing Director of American Environics Strategies and former Research Director for Senate Minority Leader Tom Daschle.

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