Action on climate change must consider all citizens

About 1 in 5 Iowans would be eligible for direct consumer relief on energy costs in the House climate bill.

Climate change affects everyone, everywhere.

David Osterberg
David Osterberg

Everyone will have to make changes, but for some it will be more difficult than others. Public policy must recognize this disparity.

Recent negotiations in Copenhagen dealt with climate-change policy ideas that hit poor countries differently from rich.

Unless rich countries provide funds to help implement new energy-efficiency and renewable-energy technology, developing countries will not be able to afford a transition to smarter, cleaner, but initially more expensive methods of producing energy.

Within the United States, we’re going to see higher energy prices by making coal and other fossil fuels account for their environmental and health effects, at least initially. It is not avoidable, and without careful design these policies will affect people differently at different income levels.

While a climate-change bill has not passed the full Congress yet, President Obama last year signed economic recovery legislation that takes some steps, helping low-income people who find it difficult to insulate their homes and upgrade furnaces and other appliances to use less energy.

In that so-called “stimulus” package, the American Recovery and Reinvestment Act (ARRA), Community Action Agencies in Iowa and around the nation received a large boost in funds to ensure that homes of the poorest families use much less energy.

Before, that program spent about $15 million per year on weatherization in Iowa. ARRA added $80 million over three years. The work is currently under way, helping people to weatherize their homes and helping the Iowa economy at the same time.

Climate legislation in Congress can and should do more.

The climate-change legislation passed last June by the U.S. House recognized the difference. Where, higher-income Americans can offset the higher costs of a gallon of gas or kilowatt hour of electricity by installing insulation or combining car trips, such efficiency moves are out of the reach of many Americans at low incomes.

About 1 in 5 Iowans — approximately 579,000 at low incomes — would be eligible for direct consumer relief in the House bill. These payments would compensate for higher expenses for energy and energy-intensive goods and services for those households.

A Senate version of the bill does less directly for low-income citizens, but that bill, passed out of the Environment and Public Works Committee, also makes improvements. It’s something that needs further consideration.

At home and abroad, climate-change policy must recognize the disparity in economic ability to make the necessary changes to save our environment, our resources and our planet.

Posted by David Osterberg, Executive Director

Author: iowapolicypoints

The Iowa Policy Project is a nonprofit, nonpartisan organization that provides research and analysis to engage Iowans in state policy decisions. We focus on tax and busget issues, the Iowa economy, and energy and environmental policy. By providing a foundation of fact-based, objective research and engaging the public in an informed discussion of policy alternatives, IPP advances effective, accountable and fair government.

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