For Peat’s Sake: Bogs, Bord na Móna and the Climate

Jan 19, 2020Jun 10, 2020 / Small Change / 2 Comments

My skull hibernated
in the wet nest of my hair.

Which they robbed.
I was barbered
and stripped
by a turfcutter’s spade

who veiled me again
and packed coomb softly
between the stone jambs
at my head and my feet.

-Seamus Heaney

Abbeyleix bog in Co. Laois is a rare example of a bog that has not been utterly destroyed by industrial peat extraction. Many of the peatlands I saw from my window on the bus down here were not so lucky. The barren and lifeless landscape of bogs that have been stripped bare is a common sight in the Irish midlands, and it is becoming more common every day. Abbeyleix very nearly met the same fate back in 2000. If it were not for the dedication and quick thinking of the community, the thousands of species in the bog would be homeless and hundreds of thousands of tonnes more carbon would be in the atmosphere instead of in the ground where it belongs.

Bogs and Irish culture have been intimately linked for centuries, cropping up in everything from our traditional songs to the work of our most beloved poets. They have provided us with energy, clean water, jobs and a home for our wildlife. Globally, degraded peatlands account for a quarter of all carbon emissions from the land-use sector despite covering only 3% of the land. They also contain 30% of the world’s soil carbon; that’s twice as much carbon as is stored in all the world’s forests. It is estimated that more than 80% of Irish peatlands have been damaged in some way.

Peat forms because the water-logged and acidic conditions of a bog significantly slow the decomposition of bog mosses, also called sphagnum, causing a build-up of organic matter. Emissions from peatlands don’t just come from the burning of the peat; they also come from drainage. When the level of water in a bog (known as the water table) is reduced, this exposes more of the peat to the air. In this dry, oxygen-rich environment, the peat decomposes, releasing all that carbon back into the atmosphere.

Despite owning only 7% of Irish peatlands, the organisation primarily responsible for the industrial extraction of Irish peat is Bord na Móna, a semi-state company which was set up by the government in 1934 under the name ‘the Turf Development Board’. Since the inception of Bord na Móna proper in 1946, the company has been responsible for the development of 80,000 hectares of Irish bogs. Back in 2016, Bord na Móna rebranded themselves with the slogan ‘Naturally Driven’ and tried to position themselves as environmental stewards. The journalist John Gibbons called this campaign “profoundly, irredeemably dishonest” and “an exercise in cynicism”. He also quoted An Taisce as saying “We suggest they drop their new ‘Naturally Driven’ slogan and replace it with the phrase ‘Profit Driven’. Then Bord na Móna would at least be able to sell its business plan with a straight face”.

Abbeyleix bog had been owned by the De Vesci family since the early 1700s. In 1987, Tom De Vesci, who had previously attempted to have the bog designated as a heritage site, was coerced by Bord na Móna into selling the bog. “I was approached many times by Bord na Móna to sell it after my father died in 1983 and I always refused” Tom said in an interview. “But eventually I was informed that Bord na Móna would be taking ownership via a compulsory purchase order at a somewhat lower level of compensation than I would get if I sold it ‘voluntarily’ a few weeks earlier”. In 1989, Bord na Móna cut 66km of drains into the bog in preparation for future peat harvesting.

On Thursday, 20^th of July 2000, Chris Uys, a member of the Heritage Company and now development officer for the Community Wetlands Forum, met with Jimmy Dooley of Bord na Móna to discuss plans for a walkway through the bog and to inform Jimmy of concerns regarding its development. The following day, locals noticed unfamiliar pieces of machinery on the bog, which had been delivered to the site by Bord na Móna overnight. Chris Uys raised the alarm in the community that development of the bog was about to begin. That Sunday, local resident Gary O’Keeffe parked a crane in the entrance to the bog under the guise that it had broken down during a bird-watching session in order to keep the rest of the machines out of the bog. By Monday morning, at least 50 people had gathered at the entrance to protest the development, with numbers swelling to around 100 by lunchtime.

After much pressure from the community, Bord na Móna finally agreed to carry out an Environmental Impact Assessment (EIA) in April of 2001. They found that the Abbeyleix site was of “little or no conservation value”, an assessment which both the Abbeyleix community and the Irish Peatlands Conservation Council (IPCC) considered “incomplete and inaccurate”. An ecologist by the name of Doug McMillan was invited to carry out an independent assessment of the bog. Having only surveyed 20% of the land, Doug had already found over 500 species, and could reasonably conclude that the bog was home to thousands of species, including a butterfly which was protected by the EU. If Bord na Móna really had carried out an EIA, they had either done a poor job or they had lied about the results.

In 2002, An Bord Pleanála found that Abbeyleix bog was not exempted from the requirement for planning permission. This was the first time in Irish history that a peat development went through the planning permission process. Bord na Móna, in true form, took high court action against both the Laois County Council and An Bord Pleanála. In 2008, an ecologist by the name of Jim Ryan carried out another survey, finding that only 1% of the raised bog was still intact and forming peat. I am stunned when Chris tells me that, like in Abbeyleix, only 1% of active raised bog in the country remains. In other words, we have degraded 99% of carbon-rich raised bog nationwide through drainage and peat extraction. In April of 2009, more than 20 years after they were cut, work began to block the drains in Abbeyleix. In April of 2012, the Abbeyleix community signed a lease agreement which meant that the bog would be in their control for the next 50 years, provided that it was primarily used for habitat restoration. David had beaten Goliath.

I met with Chris Uys in the lobby of the picturesque ‘Abbeyleix Manor Hotel’ on the outskirts of the bog. He has brought with him a textbook on peatlands and a folder packed to the brim with documents. When I ask him why peatlands are so important for biodiversity, he tells me that “the interesting thing about the biodiversity in peatlands is that the combination of plants and… the way they interact has a wider role to play than just purely the biodiversity that is there because it helps to retain water content, it has to do with carbon sequestration, and it supports other ecosystems”. He tells me that bogs are very important for breeding birds and that they link different ecosystems together like a natural corridor.

A walk through Abbeyleix bog feels like a walk through the history of this country. There is a calm here that soothes your aching bones like a hot bath. This is what is known rather robotically as a ‘cultural service’; one of many ‘ecosystem services’ provided by bogs like Abbeyleix. These somewhat stomach-churning terms are used by some environmentalists as an attempt to reframe the ecological crisis we have caused in the parlance of capitalism and thus convince business and industry to act. Gazing out over the endless beauty of this ancient landscape, I can’t help but think that it is downright insane to try and put a price on something that existed for so very long before our self-centred species ever dreamed up the concept of money.

Back in 1997, peat fires forced both Singapore and Kuala Lumpur to close their airports for several days. The peat in question was burning over 1,000km away in Indonesia. Scientists have estimated that the CO2 released during this one fire was equivalent to 13-40% of the mean annual global emissions from fossil fuels. The carbon is not the only issue; the vast quantities of smoke released by the fire had serious effects on health, with studies showing decreased lung function in children who were present during the event. According to a study in Archives of Environmental Health, 527 people died in 2 months as a result of the smoke, with 58,000 cases of bronchitis and 1 and a half million cases of acute respiratory infection reported. Fires like this have happened periodically over the last few decades, with one 2010 event in Russia leading to carbon monoxide levels in the capital that were 6 times the maximum acceptable level.

To the Irish, this all may seem like a distant threat, but were the Wicklow bogs to catch fire, the prevailing wind would carry all that lethal smoke right into the heart of Dublin. John Reilly, the head of the renewable energy branch of Bord na Mona, told me in an interview that “the biggest risk of wildfires is not posed by active peat production areas on drained peatlands, but rather the risk is high on virgin peatlands which are generally covered in vegetation such as gorse and heather”. He said that the major concern when it comes to fires was actually stockpiles of cut peat.

DCU-based peatlands expert John Connolly tells a slightly different story. “In one way he is right that the risk of fire (i.e. fire starting) on a drained industrial peatland may be less if all vegetation is removed. However, a lightning strike could start a fire and in that case drained peatlands are much more vulnerable than virgin (i.e. wet) peatlands”. Dr Connolly sent me a link to a 2016 study in ‘Nature’ which states that “the high burn severity of drained tropical/temperate peatland fires suggests that large-scale peatland drainage and mining in northern peatlands over the last century has also likely made managed northern peatlands more vulnerable to wildfire than natural (undrained) peatlands”. While there is an element of truth in what John Reilly told me, then, it seems that it was not the whole truth.

In 2006, an area of dried and cut peat the same size as Abbeyleix bog caught fire in the Irish midlands, leading to the evacuation of several Longford residents. While it was the stockpiles that caught fire rather than a bog itself, the incident shows how damaging peat fires can be. Smoke from the fire travelled 10 miles north. One Rooskey resident who had suffered from respiratory problems in the past was quoted in the Irish Times as saying “at the moment I am closing my windows and hope that will be enough”. A 2002 study of the Indonesian haze disaster, however, suggests that staying indoors only gets you so far in a situation like this.

They found that indoor concentrations of particulate matter were about half of what they were outside. That was a form of particulate matter known as PM₁₀because the individual particles are 10 micrometers or smaller in diameter. They could not find any difference, however, in the concentrations of fine particulate matter, or PM_2.5, which are particles 2.5 micrometers or less. The researchers said that “perhaps the size of particulates was so small as to travel and intrude into any space; the concentration of pollutants was extremely high, and the indoor environments of buildings in Indonesia were rarely exempt from these pollutants”.

When asked about Mr Reilly’s claim that the presence of vegetation increases the risk of wildfires, Chris Uys replies that “from that point of view yes, that is so. But if you are talking degraded peatlands, degraded means that you have dried. For me, there is a higher risk… when the peat below the surface is dry and there is an ignition of anything above, it starts to smoulder underground as well”. Chris tells me that Abbeyleix has suffered from this very problem; “we had a fire at one stage, and you could just see smoke. On nearer investigation it was actually starting to simmer underground. It just keeps going”. While vegetation fires on the surface are manageable, the dried peat below can keep burning for a very long time and release a lot of carbon before it is extinguished.

Thankfully, Bord na Móna have been trying to get out of the peat business for over a decade, with over half of their revenue coming from non-peat-related activities in 2019. John Reilly, who has been doing excellent work building renewable energy infrastructure with the company, tells me that “Bord na Móna developed the first commercial wind farm in Ireland back in 1992, on a joint venture basis with the ESB, so we have some considerable experience in the sector”. They also announced last year that they were closing 17 of their active bogs, with the remaining 45 bogs to be closed within 7 years. However, some have said that this amounts to greenwashing, since the planned closures are of bogs that have been exhausted and are no longer profitable. As UCD peatlands expert Dr Florence Renou-Wilson put it in an interview with the Guardian, ““It’s a bit of a smokescreen. It’s all revenue-driven… they’re are all done and dusted”.

Bord na Móna is not the only company extracting Irish peat, though it is the largest. A company called Harte Peat has come under fire recently for carrying out large-scale peat extraction without a license in the Derrycrave bog in Westmeath. Photos released last year by ‘Friends of the Irish Environment’ showed that Harte had been cutting the peat right down to the mineral layer below, leaving almost no possibility of recovery. Peat that had formed at a rate of about 1 millimetre a year until it was several meters thick was stripped down to the bone in the geological blink of an eye, depriving animals of their homes and future humans of their right to security. This tragedy has played out countless times across the country over generations, leaving us with little more than a silhouette of the beautiful and important landscapes which once dominated the Irish midlands.

The degradation of Ireland’s peatlands doesn’t just threaten our health, it also threatens our wallets. New regulations require that we start reporting the emissions from our peatlands to the EU from 2021. Ireland is already facing hundreds of millions of euro in fines for failing to meet our emissions targets and this will bring us further off target. Chris tells me that “We were fined 150 million for this already… and we’re gonna be fined again until these people stop… Bord na Móna don’t get fined. It’s the government that gets fined. They merrily go on. They can go on for another 30 years if the government allow them. But we get that fine”.

When asked to what extent Ireland will be able to cope with these changes to EU law, Dr Connolly tells me that “the government and the EPA have made some investments in funding research and research infrastructure over the past few years. These investments will allow scientists to provide some of the detail that is required in the legislation, however much more investment is needed in research, infrastructure and rewetting/restoration as peatlands in Ireland are severely degraded and emissions are unknown in many areas”. But does this mean more fines for the Irish government? “It depends. If peatland emissions can be reduced to zero by the start of the 2026 reporting period, then no. However, current emissions are estimated to be about 11 million tonnes of CO₂ … The reduction of these emissions to zero over the next six years will be very challenging.”

I ask Chris if Abbeyleix bog became a net source of emissions following the drainage and, if so, if it is back to being a net sink. “Possibly we are not a net sink yet… the higher the water level the less carbon emissions,” he tells me. “Then it gets to a point where it changes and it starts to give out methane emissions. There is a sweet spot where you have the least emissions. The other problem with degraded peatlands is that if you don’t have vegetation formation, (sphagnum), then it does not negate the methane”. The blocking of the drains has not been in vain, however. Whereas only 1% of the active raised bog remained in 2009, Chris reckons that as much as 10-15% has recovered in the intervening decade.

It takes time for peatlands to regenerate; all the more reason to block as many drains as we can as soon as we can. The light is beginning to fade from the grey clouds overhead as I slip and slide across the wet wooden walkways. The first few drops of rain begin to fall once more on the mounds and ditches of Abbeyleix. This beautiful landscape serves as both a cautionary tale and a beacon of hope. It showcases the terrible consequences of degrading our bogs, but is also a reminder that with elbow-grease, dedication and time we can undo some of the wrongs we have inflicted on the natural world.

Money for Nothing: The Advantages of Universal Basic Income

Jul 7, 2019Aug 23, 2019 / Small Change / 1 Comment

The idea that we could pay everyone enough money to live on with no strings attached has been around for hundreds of years. With income inequality and job automation on the rise in recent years, however, the idea has started to make more and more sense.

UBI and Income Inequality

Universal Basic Income (UBI) means that each person is paid (by the government) enough money that they can afford food, shelter and even a carefully budgeted social life without the need for work. The extremely poor would be paid exactly the same weekly wage as the extremely rich. Where would this money come from? A tax on the obscenely rich of course. A 40% tax on Jeff Bezos’ wealth would yield around 61 billion USD, leaving him with a measly $91 billion for himself. The $61 billion that comes from taxing one man could be used to pay someone else $500 dollars a week for 2 million, 346 thousand, 153 years. That’s nearly 12 times longer than our species (homo sapiens) have existed.

Bezos himself would be left with more money than it is possible to spend in a lifetime, even living the most extravagant of lives. What’s more, he would continue to generate huge quantities of wealth through both the profits of Amazon and the monumental interest which accrues when one has $91 billion in one’s pocket. This is not necessarily how UBI would work in practice. Rather than a wealth tax, the money could instead come from taxing the income of the extremely rich. This avoids the problem of trying to tax assets like property and warehouse robots, but the drawback is that it is easier for billionaires to hide their income than it is for them to hide their robots.

Incidentally, working 24/7 with no breaks at the US minimum wage of $7.25 per hour, it would take 2 million, 393 thousand, 324 years to make as much money as Jeff Bezos currently owns. That is also roughly 12 times as long as sapiens have been around (aren’t numbers fun?). The question these figures pose for me is this: What could Jeff Bezos possibly have done in his life that is of equal value to 2 and a half million years of minimum wage work?

The way the system is currently set up necessitates that the rich get richer and the poor stay poor. People working on minimum wage make just enough to get by, leaving them with basically no possibility of saving or investing in education. The super-rich, on the other hand, are actually paid just for being rich (in the form of interest). People who are struggling to make ends meet may be forced to borrow money from the very rich. These loans accrue interest, meaning that the net effect is that money is taken away from the economically disadvantaged people who need the loan and funneled upwards into the bank accounts of the people who could afford to give the loan. These factors, along with automation of jobs and a few others, are why income inequality has been rising and rising and showing no sign of slowing down. Taxing the rich and using the money for UBI would go a long way towards closing that gap.

Many researchers have drawn a negative correlation between income inequality and self-reported happiness. This makes sense in terms of both the numbers and the philosophy. Of course people in more equal societies are happier. Every country has a finite amount of resources, and how fairly those resources are distributed determines how many people are struggling to put food on the table and how many people can comfortably provide for themselves and those who depend on them. Given the link between happiness and inequality, it follows that a system such as UBI which dramatically decreases inequality would also lead to a dramatic increase in happiness.

UBI and Employment

These days, when someone is called a ‘Luddite’, it is typically used to mean that they are opposed to the progress of technology. An example would be someone who refuses to buy a smartphone. However, the word originally referred to a revolutionary group who were active more than 200 years ago. The Luddites were weavers who were famous for smashing spinning jennies, machines that threatened to put them out of work, but they were not necessarily opposed to technology as many people believe. Instead, they were opposed to the obscenely rich upper class who owned the spinning jennies, from which the workers reaped no benefit. Spinning Jennies were not new technology, in fact they were invented 50 years before the first Luddite ever smashed one.

The problem was that when something was woven by hand, the weaver could receive the majority of the profits, whereas if it was woven by a spinning jenny, the majority of the profits would go to whichever wealthy man owned the machine. The Luddites were early trade union activists who protested unfair wages by destroying their employer’s revenue-generating property. This problem has only gotten worse since the protests began in 1811. Many people, like fast food workers or cashiers, make a living by operating machines which belong to extremely rich CEOs who have very little indeed to do with the actual production process. Amazon currently have 45,000 robots operating in its warehouses, generating revenue but paying no tax. A barely related but nonetheless interesting side note is that Amazon’s warehouse robots have accidentally opened multiple cannisters of bear repellent in the last few years, leading to the hospitalisation of dozens of employees.

About 50% of workers are predicted to lose their jobs to machines by 2050. The number of jobs that are beyond the reach of automation has been shrinking ever since the Luddites banjaxed their first jenny, and the rate at which they are disappearing has become more and more rapid with the passing of time. Before anyone thought to use a dummy, the job of scarecrow was carried out by children, who were paid one penny and a swede for their troubles. For me, it makes perfect sense that jobs like this were lost to time. That is why we build technology; to reduce the amount of work we need to do ourselves. Often the jobs that are taken by machines are ones that we only do because we need the money, not because we find them fulfilling or meaningful. With UBI, we could leave those jobs to technology and focus instead on projects which make the world a better place.

The main issue here, for me, is not that jobs are lost to technology. New jobs are constantly being created to meet new demands. While human scarecrows have gone the way of the dodo, uber drivers and dogwalkers have popped up in their stead. That’s evolution baby. The priority should not be to desperately cling to jobs that we no longer need or want (like coal mining or weapons manufacturing) but rather to provide adequate training to the people doing these jobs so that they may transition to ones which are more useful to society (like building renewable energy infrastructure or vertical farming).

People do not do jobs which harm society because they want to. They do them because it is necessary to put food on the table. By providing food and shelter to everyone, we mitigate the external pressure to work jobs which harm society and encourage people to focus their attention instead on what gives their lives meaning or makes them happy. What they choose to do will be more likely to be in the best interest of society than what they are currently forced to do to survive in a broken system.

Another way that UBI could benefit society is by massively streamlining the welfare process. Right now, huge numbers of people are employed to sign people up to welfare, make sure that people are looking for work and carry out the administration and bureaucracy involved in a system which requires people to prove beyond a reasonable doubt that they are starving before it will give them something to eat. These administration jobs could largely be done away with under UBI, since welfare would be replaced by the very simple process of giving everyone exactly the same amount of money regardless of their situation. The money we pay to welfare officers and administrators could be used to help fund UBI, and the people who are doing these jobs would be freed up to pursue more fulfilling goals. Hell, one of them may be the next Jimi Hendrix but they never had the time or resources to pick up a guitar before.

What about the claim that if everyone is paid to do nothing, then no one will do anything? This, in my view, is simply false. People have an innate drive to make something of themselves. I doubt you would last more than a week doing absolutely nothing before you decided to get up out of bed and make your name mean something. In addition, UBI does not mean that there is no reason to get a paying job. Your weekly wage as an unemployed person would be enough to live on, yes, but it would not be enough for a particularly comfortable life. Most people would still work a few days a week to make money for holidays, luxury items and projects which enrich their lives. This idea is supported by preliminary evidence from the most complete pilot study ever carried out in relation to UBI.

From 2017-2018, 2,000 people were randomly selected in Finland to receive €560 per month with no strings attached. Researchers then compared those who participated in the study to a control group of 173,000 people with respect to several factors including employment rates and life satisfaction. For all of 2017, the test group earned, on average, just €21 less than the control group from employment. This extremely small difference tentatively suggests that UBI will not lead to a significant reduction in employment, if any. The difference in trust and life satisfaction between the two groups, however, was far more significant. Basic income recipients reported much higher levels of trust in other people, the legal system and politicians. They also reported much higher confidence in their future, financial situation and ability to influence societal matters. In addition, 54.8% of basic income recipients self-assessed their health as being ‘good’ or ‘very good’, compared to just 46.2% of the control group. The study only ended in December of 2018, so the full report has not yet been released, but the preliminary evidence suggests that under a UBI system, employment rates would stay about the same, whereas happiness, trust and health would benefit hugely. The full report is scheduled for release at the end of 2019.

UBI and Society

To say that UBI is unrealistic because the rich will not allow it to happen is to succumb to a form of brainwashing. There, I said it. There are more of us than there are of them, and yet somehow they have convinced us that they will always have all the money and we will always have none. The most important tool in their arsenal is your belief that they are too powerful to oppose. By arguing that they will not allow it to happen and therefore we should not even try, you are playing right into their hands. If you think that UBI would be good for society (as I do) then you should fight to make it happen. I am not saying that we will not come up against any resistance from the financial elite. We very much will. What I am saying is that one of the ways in which they have resisted change already is by convincing you that they are so firmly in control that nothing can be done.

UBI would give us the freedom to do what we want to do with our lives. It would provide the foundation for an equal society, in which those who were born with nothing can make something of themselves and those who were born with everything get a smaller slice of the global pie. The Luddites thought that it was unfair that people who had inherited enough money to buy spinning jennies were taking all the profits while the people working their fingers to the bone operating those machines were making a pittance. I wholeheartedly agree. The private ownership of revenue-generating technology like tills, deep-fat-fryers and warehouse robots has been a significant factor in the long-term trend toward a top-heavy and unjust society in which some people have mansions to themselves while others share tiny flats or worse, sleep on cold and unforgiving streets.

Automation, inheritance, interest, loans, tax loopholes and unfair wages have created a society in which some people have everything and everyone else has nothing. There are things we can do to alleviate this problem like raising the minimum wage or corporate tax, but none do more to solve the problem than UBI. The disadvantaged majority have always fought for equality and the advantaged minority have always resisted to maintain their advantage. Enough is enough. We are more connected now than ever before in human history, making it easier than ever before to organise ourselves against those in power. We need to elect people who are not afraid to push back against corporations and sign into law measures that will help the 99% and hurt the 1%. For too long the discourse has been controlled by people who benefit from things staying exactly as they are. The new generation has shown time and time again that we want change and it is only a matter of time before that wish is granted. Do not believe for one second that they have all the power. If we do that, they have won. We have the power. We can force change.

ExxonMobil vs The State: How Governments Can Lower Corporate CO2 Emissions

Mar 21, 2019Oct 15, 2019 / Small Change / 3 Comments

First published in UCD College Tribune

Updated 15/10/2019

A report released in 2017 found that over half of all global emissions since 1988 have been produced by just 25 companies. When you take into account the 100 most environmentally damaging companies, known as the ‘Carbon Majors’, that figure rises to over 70%. In October of 2019 (during rebellion week), the Guardian reported that just 20 companies have been responsible for 35% of all emissions since 1965; the point at which experts say that both government and industry were fully aware of the dangers of fossil fuels.

Even so, we are constantly told that individual actions like using canvas bags and taking the bus will be enough to avoid the catastrophic effects of climate change. The truth is that the onus is on the major greenhouse gas emitters like Exxon Mobil and Shell Oil to simply stop extracting and distributing fossil fuels. Unfortunately, the pressures of the competitive market mean that they are not going to do this without a push.

As things stand, it makes more financial sense to use fossil fuels than renewable alternatives. However, there are many ways that governments can curtail the emissions of Carbon Majors through financial and legal incentives. A fundamental of the modern nation state is that the legislator should tax practices which they aim to discourage in society. This is why smoking is so expensive. Governments realised that by taxing cigarettes at an extremely high rate, they could better public health and make some serious dough while they were at it.

By raising the price of smokes, governments can gradually decrease the number of smokers which in turn decreases the amount they have to spend on the treatment of diseases like lung cancer and emphysema. In theory, this increase in revenue can be put towards things like medical services and anti-smoking campaigns. This essentially means that governments can shift the costs that smoking imposes upon society onto those who actually smoke.

Similarly, governments can tax the use of dirty fuels which emit CO2 and use the extra cash to invest in renewable energy research. Some form of ‘carbon tax’ has already been introduced in 46 countries, including Ireland, Canada and Australia. Carbon tax means that fuels which result in higher carbon dioxide emissions are taxed at a higher rate, a policy which is all ‘stick’ and no ‘carrot’.

By taxing carbon, governments can cut into the profits of companies who would otherwise be making a killing on fossil fuels. The hope is that Carbon Majors will then be incentivised to move toward renewable energies like solar and wind power. While a higher carbon tax would mean an increase in the prices of fuels like petrol, coal and gas for the consumer, it would also mean that clean energy sources could become more competitive.

The other side of the coin is renewable energy subsidies; the ‘carrot’ to the ‘stick’ of carbon tax. The government invests money in order to lessen the costs of energy from sustainable sources. The top 6 countries that subsidize renewables spend a combined total of 40 billion dollars a year. Unfortunately, we spend more than 5 trillion a year globally to subsidize fossil fuels. That’s 6.5% of the global GDP.

Subsidies can go a long way towards decreasing the financial loss Carbon Majors and consumers suffer when switching to cleaner sources of energy. By both taxing fossil fuels and subsiding renewables, governments can gradually make it so that renewables are the sounder investment. Since financial considerations are the only considerations corporations are likely to take on board, the use of both of these policies could go a long way towards reducing the footprint of Carbon Majors.

While straight-up carbon taxes are gaining popularity worldwide, there is a similar but more widely used group of policies called carbon ‘cap and trade’ schemes. These schemes involve setting a limit on how much CO2 can be produced in total then either giving or auctioning ‘credits’ to companies which equal that limit. If companies exceed their allowance, they are liable to incur very serious fines or even legal action. One way that companies can exceed their allowance is by buying (or trading) credits from other companies who are using fewer fossil fuels than they are allowed.

With a carbon tax, companies can just take the hit and produce as much CO2 as they can afford. The advantage of cap and trade schemes is that while Carbon Majors still take a huge financial hit by using fossil fuels, there is a fixed upper limit on how much they can produce. Another advantage is that companies which can reduce emissions cheaply can then sell their remaining credits to companies which are struggling to meet their allowances and make a profit. In this sense, cap and trade schemes combine the carrot and the stick into one efficient bundle.

The main criticism of cap and trade schemes is that it allows Carbon Majors to carry on polluting as they’ve always done since it is still cheaper to pay for extra credits than to switch to 100% renewable energy sources. However, smart legislation such as lowering the upper limit on carbon emissions and thus raising the price of credits at auction should be enough to make these schemes workable. The main obstacle to these amendments, as with all climate-protecting plans, is that the companies who are profiting from the destruction of the environment can use their astronomical profits to lobby for the weakening or outright removal of cap and trade schemes in the countries in which they operate.

Perhaps the main issue with putting a price on carbon is that the costs will be incurred not by major polluters but rather by the poorest people in society. When governments make it more expensive to sell fossil fuels, fossil fuel sellers make it more expensive to buy them. This kind of ‘climate austerity’ means that the plumber who needs to drive their van all day for work takes a huge financial hit while the bottom lines of the companies who sold the plumber the petrol remain despicably intact.

A possible response to this line of reasoning is that the consequences of leaving climate change unchecked will affect working class people far more severely than an increase in tax. The CEO of Exxon Mobil will not suffer from the food or water shortages brought on by climate change. Truckloads of water will be delivered to their mansion to hydrate their petunias while the working class people die of dehydration. The question becomes whether we are willing to die for our principles, deeply held as they might be.

Another consideration is that only about 10% of the emissions from carbon majors come from the extraction and transport of the fuels. The remaining 90% comes from ordinary people like you and me burning those fuels to power our cars and heat our homes. Given the catastrophic consequences of climate change, I have to say that any government action which reduces energy consumption is positive in my books. Yes, we need system change like building renewable energy infrastructure and getting rid of fossil fuel subsidies, but system change takes time. In the meantime, we must all do our best to reduce our individual consumption.

A more useful response to the problem of climate austerity is that revenue from the tax should be given as rebates to people who cannot afford to pay. Tax the carbon majors and they will raise their prices. Those who can afford to pay extra for fuel do (i.e. those above a certain income threshold) while those who cannot afford it are given rebates which could more than cover the extra cost. This would mean incurring all the benefits of carbon pricing described above without hurting the plumber who is simply trying to make a living.

It is imperative that we do everything we can to curb the power of Carbon Majors to continue their crusade against the environment. Carbon taxes and cap and trade schemes are just two ways in which we can do this and must happen in tandem with every other tactic we can think of. In an ideal world, we would simply make it illegal to extract and burn fossil fuels. Unfortunately, no government is willing to take such drastic measures against entities that in many cases have more money, and thus more power, than the governments themselves.

The CEOs of Carbon Majors are not necessarily evil people. In their eyes, the livelihoods of their many employees rests on their shoulders. What we need to convince such people is that while workers can probably find new jobs, it is very nearly too late to reverse the catastrophic effects of global warming. The question they must ask themselves is whether they would rather be responsible for a few lay-offs on one hand, or the deaths of hundreds of millions of people on the other. The fact is that those are the only options.

Is There a Relationship Between Income Inequality and Happiness on a National Scale?

Apr 5, 2018Aug 23, 2019 / Small Change / 6 Comments

We’ve all heard Bernie Sanders talk about how the top 1% of earners in the world own more than half of all global wealth. Unfortunately for most, Bernie is not wrong. In recent years, income inequality has been growing globally at an alarming and ever-increasing rate.

It has been growing, however, at vastly different speeds in different countries. It seems that the way in which a country legislates has a real and important effect on inequality. In this piece, I’ll examine the possible relationship between income inequality and happiness by looking at figures from, among others, the World Happiness Report (WHR) and the World Inequality Report (WIR)

It is definitely worth noting that happiness is a subjective and complex notion which surely depends on any number of factors outside of wealth. My aims here are simply to a) showcase some pieces of evidence (in the form of graphs from various sources) which suggest a link between inequality and happiness and b) to provide a largely theoretical discussion of the possible mechanisms for such a correlation and what the implications are if the correlation holds water.

Before I go any further, I’ll tell you a little about the measurements being used. For happiness (or more accurately ‘subjective wellbeing’), the figures come from so-called ‘Cantril ladder’ answers. The Cantril ladder question is simply asking people to rate how happy they are on a scale of 1 to 10. On which rung of the ladder do you think you are? An important point to mention is that the ‘0’ and the ’10’ on the scale are defined by the person being asked the question. One issue with this measurement is that answers may be more or less truthful depending on the culture in which they are being given. For example, it could be the case that Norwegian culture encourages people to exaggerate their happiness, skewing results.

For inequality measurements, the Gini Coefficient is perhaps the most useful here. The Gini Index shows how much inequality there is in a country on a scale of 0 (perfect equality) to 1 (perfect inequality) by measuring the “average distance between the income or wealth of all the pairs of individuals” (WIR). Some graphs included in this report, however, use more tools than just the Gini.

Oishi and Kesebir (Link in Sources)

Back in the seventies, Richard Easterlin, the ‘father of happiness economics’, formulated what came to be known as the Easterlin paradox. He found that while the rich people within a country were generally happier than the poor, richer countries were not necessarily happier than poor ones. While the US is the wealthiest country on earth, for example, it ranks just eighteenth in the 2018 World Happiness Report. Easterlin also found that an increase in the wealth of a country did not bring with it an increase in happiness. These results were very surprising and seemed to contradict themselves. Some researchers, like Shigehiro Oishi and Selin Kesebir, think that the final missing variable which explains Easterlin’s paradox is income inequality.

From World Happpiness Report – Link in Sources

The above graph from the WHR shows that while average US income more than doubled over the studied period, happiness was the same if not lower in 2016 than it was in the early seventies.

There could, of course, be any number of reasons for the findings shown in the above graph (WHR figure 7.1). A possible explanation is the idea of diminished returns. This is the concept that as we acquire more and more wealth, the happiness that a given quantity of money brings us diminishes. If most people won fifteen grand on the lottery, for example, the money would transform their lives for the better. If Bill Gates or Donald Trump won the same amount, it is debatable whether they would even notice.

Diminished returns could be one of the theoretical reasons why inequality should affect happiness. If, as the data shows, the majority of global wealth is being accumulated by people who already have plenty to spare, there will not be a huge ‘return’ of happiness. In a perfectly equal world, everybody requires the same amount to be satisfied. In a perfectly unequal world, the majority of people require little to be satisfied but do not receive even that because all the money is tied up in the bank accounts of people who take their yachts for granted.

From World Inequality Report – Link in Sources

Easterlin’s hypothesis was that our happiness depends not on the absolute wealth of the country we live in, but rather where we rank in the social pecking order within the country. This is the concept of ‘keeping up with the Joneses’, which could also be a possible mechanism whereby inequality may affect happiness. In a perfectly equal world, people look around and see that everyone around them has the same amount of money they do. In a perfectly unequal world, the vast majority of people can look around and see some people who own more money than they could make in a million lifetimes at their salary. This is not to say that everyone would be unhappy because of petty jealousy but it is disheartening for someone who is starving to see someone else participating in an eating competition until they make themselves sick. Higher income inequality means more people starving and more people who have enough money to last a hundred lifetimes, lying dormant and useless in an offshore bank account.

From World Inequality Database – Link in Sources

Figures from the World Inequality Database show that while the income of the Russian population grew by a total of 34% between 1980 and 2016, the income of the top 0.001% over the same period in Russia grew by a gargantuan 25,269%. When we look at the global rankings, we see that, for the most part, the most equal countries are also the happiest and the least equal are the least happy. Some readers may question here whether correlation implies causation or if external factors may be influencing the data. Happiness, after all is a slippery and complicated thing to measure. In the US, for example, low happiness levels relative to wealth may be due to such factors as high rates of gun violence, racism and obesity or any number of other problems.

From the Guardian – Link in Sources

However, if we look at the trends over time on a global scale, there seems to be a link and it is important that we explain that link if we are to learn how best to organise society in terms of subjective wellbeing. Perhaps some countries have both high happiness and low inequality because they have effective governments with a knack for social policy. These governments may provide the infrastructure for happiness through effective legislation aimed at increasing public wellbeing. Might it not be their legislation in other areas which increases national happiness, thus making our apparent link redundant?

It makes sense to me to conclude, at least, that part of the effective policy required to increase national happiness is legislation designed to minimise income inequality. Raising the minimum wage. Raising taxes for the wealthy and using that money for social goods. This is what smart governments do. I for one favour going one step further and introducing a universal basic income, a move which would dramatically reduce the wealth gap if carried out correctly. That, however, is a topic for another post. Legislation influences both the happiness of a country and its place in the Gini index. What is good for income equality may also be good for happiness.