Carbon tax and Subsidies’ Faux Remedies: Why they fail and what can we do about it?

  • January 29, 2018
    11:30 am - 1:30 pm

Guest Speaker:

Dr. Ricardo G. Barcelona
Lecturer and Author
“Energy Investments: An Adaptive Approach to Profiting from Uncertainties”

 

January 29, 2018 (Monday)
11:30 AM – 1:30 PM

 

5/F KMC Solutions, Inc.
V Corporate Centre
125 LP Leviste St., Salcedo Vilage
Makati City

 

The briefing is adapted from a number of chapters in Dr. Ricardo Barcelona’s recently published book – Energy Investments: An Adaptive Approach to Profiting from Uncertainties. The twin remedies adopted to encourage wide-scale renewables deployment are carbon taxation and subsidies. While carbon taxation is proving more successful, both measures experience mixed records of achieving policy objectives. Carbon tax is what the doctors prescribed to cure our fossil fuels’ addiction. This works, in theory, when supplies shift to favour cleaner, affordable, and secure sources of energy. Given the choice and incentives, managers would opt to adopt non-polluting supplies to avoid the penalty.

 

However, under archipelagic systems such as the Philippines, carbon tax’ effectiveness is stymied by poor infrastructure that vastly limit fuel mix choices to coal or diesel. Hence, carbon tax inflicts penalties without making an impact on fuel substitution. On the other hand, generous subsidies fail as they create three paradoxes: Green paradox where generous subsidies failed to result in wide scale deployment; Costs declines slow with growth in subsidies; and solar installations “frenzied” growth hardly translated into sustained profitability for investing firms.

 

In assessing these dilemmas, the book proposes decision-making frameworks that explicitly evaluate renewables’ contribution to portfolio values under dynamic energy markets.

 

Tariff
Member:
 ₱500
Non-Member:
 ₱750

 

For more information:
contact Ms. Bea Baldonado
beabaldonado@amchamphilippines.com
718-9003

Location

Venue:  

Venue Website:

Address:
125 L.P. Leviste Street, Makati City, Metro Manila, Philippines