You’ve all heard it – at least I hope you have – starting, probably, sometime in grade school: “i before e except after c.” (Are you listening, all you caffeinated Keiths and Sheilas? And I suppose it’s a bit too late for Einstein.) Taking some editorial license, I’d like to propose a modification for the purposes of environmentalism and economics: “i before e especially after c.”
I’m not referring to the letters i, e and c here, but rather to some words beginning with those letters. The “i” is for internalize; the “e” is for externalize; and the “c?” Well, that’s for carbon. So what I’m saying here in a more or less catchy albeit derivative way is we should internalize costs, in particular, environmental costs, rather than externalizing them as we currently do in most cases. And that this is especially important when the costs involve carbon.
© David Bergman
Let me back up a moment for those who have not had the misfortune of either an economics background or regular encounters with the word “externalize.” (If you haven’t, you may need to internalize that word so that you can toss it around in, say, dinner conversations with your climate change denying relatives.) An externality, as used in the dismal science, is often defined as “an effect of a purchase or use decision by one set of parties on others who did not have a choice and whose interests were not taken into account.” It amounts to a rebuttal of “there’s no such thing as a free lunch” because an externality is, in effect, a free lunch for the party causing the cost.
Externalities are, arguably, the primary reason our capitalist system screws the environment (and us along with it). From a business’s point of view, why care about costs that you don’t have to pay for? The obvious response is to make the person or company causing the environmental costs pay for them. In the case of climate disruption and carbon emissions, the method is some form of carbon pricing, preferably a cap and dividend system like that promoted by eco-stalwarts Bill McKibben and James Hansen, and first introduced as legislation in 2009. A carbon fee would be a more direct route, but cap and dividend would offset the increased price of carbon-emitting forms of energy. In theory, that should have been more acceptable – if not actually desirable – but our head-in-the-sand, hands-in-the-money legislators thought otherwise.
The i-before-e rule can be applied to many industries. It’s most often talked about in terms of power plants. But here’s another example to ponder: if airlines or aircraft manufacturers had to pay a fee for the carbon emissions of their planes, that would have at least two effects. It would increase the costs of air travel so passengers would make more accurate decisions about when and where to fly (and could choose to use their carbon dividends to pay the higher but environmentally correct costs). Perhaps more significantly, it would shift the responsibility and the incentive to develop less polluting planes and engines to the industry. The same would hold true for manufacturers of products ranging from cars to cable boxes. (I hate that the cable boxes we’re forced to accept from the cable TV monopolies are huge suckers of vampire energy. I recently asked Time Warner if they had Energy Star-rated boxes – which do exist – and got an apathetic “nah” for a reply.)
The original “i before e except after c” is usually followed by the disclaimer “or when sounded as ‘a’ as in neighbor and weigh.” Aside from the fact that there’s a, um, surfeit (that seemed to be the appropriate word to use here) of exceptions, it’s a somewhat unfortunate addition when added to our version since we’re referring to weighing the cost of carbon in order to promote better communities among neighbors. Okay, so that last part’s a bit of a stretch. But I don’t think it means I have to forfeit the idea, unless you’re going to get feisty on me. The fact that the English language is a mess, breaking rules left and right and undoubtedly causing externalities of its own, shouldn’t keep us from adopting this eco-mnemonic.
Too much “success” has come from exploitation – exploitation of people, resources, or environment. This strategy leads to ruin with a finite system (our planet) because eventually it runs out of things to exploit. Then the system collapses.
So this is a worthy approach to making businesses pay the full, real cost of their products and services.