In Business, Creating Sustainable Enterprises & Communities

IT'S TIME FOR THE DISTANCE TAX

In Business, May-June, Vol. 29, No. 3, p. 20

Our system of remote industrial production, transport and distribution is a prime contributor to the carbon dioxide problem. The key is stimulating sustainable local production of basic goods and services.

Peter LaVaute

WE HAVE the resources and infrastructure in place right now to implement a program that will significantly reduce the threat of global climate change over the short and long term. Advances in freight transport coupled with low fuel prices have made it possible for corporations to find where the absolute lowest production cost of an item is and ship it to where the best markets are. In many situations, lax environmental laws and availability of low cost labor are the prime criteria for choosing a production location.
Prior to the industrial revolution and the capability of moving large amounts of goods over long distances, all localities and regions had to be largely self-sufficient. Communities had to produce essential goods and services in a sustainable manner or they would not continue to exist.
Globally, the population is migrating to urban areas making the bulk of humanity dependent on goods produced remotely and shipped to the location of consumption and purchased with currency. This system of remote industrial production, transport and distribution is extremely energy intensive and is therefore a prime
contributor to the carbon dioxide problem. The concentration of populations in urban areas also creates the necessity for long distance commuting by a considerable portion of the population. This, too, is a large source of fossil fuel consumption and carbon dioxide generation.
The key to addressing reduction in the production of carbon dioxide is to stimulate sustainable local production of basic goods and services such as food production and processing, energy generation, housing construction and clothing. This would cut down on energy usage, stimulate local economies, foster self-sufficiency and create a condition of true “homeland security.” This action, coupled with a robust conservation program aimed at reducing the energy expended for powering our homes and buildings as well as reducing energy for commuting and transporting goods over long distances, would be an enormous step in addressing Global Warming or Global Climate Change. The means to accomplish a practical transition to local production of essential goods and services and regional self-sufficiency is available to us in the UPC or bar code system used by nearly all the retailers in the United States and most of the major retailers throughout the world.
With some relatively simple programming, the system could identify the origin of an item, whether it be broccoli or a Toyota Prius, and levy a tax directly relating to how far away it was produced from the point where it was purchased. Items with many components which are sourced from various locations such as autos would have all of their components entered into the program so that an accurate rate can be arrived at.
The greater the distance an item travels from its origin, the larger the tax. This tax would be put into a fund managed by a Regional Self-Sufficiency Commission.

IN-DEPTH ECOLONOMIC ASSESSMENT
The first task of the Commission will be to do an in-depth Ecolonomic Resource Assessment to see what is locally available in terms of natural resources, waste stream, agricultural forest and industrial by-products. Sustainable technologies that utilize these resources as feedstock are identified and prescribed. The Positive Action Plan developed from this information will become the long-term foundation of a new sustainable local or regional economy. The fund will finance the development of sustainable local enterprises which provides essential goods and services as well as conservation programs such as weatherization of existing buildings and public transportation systems. This will stimulate local employment resulting in the reduction of commuting distances for the average worker.
The money that is generated by these locally owned and operated businesses will stay in the communities further stimulating the local economies and increasing prosperity. The Distance Tax would assist in leveling the labor cost playing field assisting local businesses to compete with products produced in distant locations whose advantages are low-wage labor and a lack of environmental regulations.

SAFETY OF FOOD SUPPLY
One of the big issues in the news lately is the safety of the food supply since a large portion comes in from abroad with little or no accountability in regards to the quality, the labor conditions where it is grown and processed and the amount of toxic contamination it may have been exposed to. The Distance Tax system would require all the food to have its origin documented which would make tracking food borne illness and contamination problems back to sources far easier.
The National Farmer's Union at present is advocating “Country of Origin” labeling to begin to address the food supply source anonymity which now exists. This effort is an attempt to address the fact that the domestic food producers are often at a competitive disadvantage in regards to food production and marketing from abroad. Estimates of how far our food travels before it gets to our tables range from 1200 to 3000 miles. That accounts for a great deal of fuel usage with its inevitable carbon dioxide emissions. The Distance Tax would address both the negative effects of the distance the food is shipped as well as assisting in protecting the safety of the food supply by making the process more transparent.
I am aware that this smacks the face of Globalization but perhaps it needs to be smacked if we are going to address Global Warming with actions that will actually result in change that is sufficiently significant to stem the almost overwhelming problem of carbon dioxide production resulting from our fossil fuel intensive economic system.
We must all become more self-sufficient and reverse the trend of being dependent for basic goods and services on people and organizations that are located at great distances from where we live and work. The current economic system makes it necessary to utilize a transport system that operates on fossil fuels and contributes significantly to the problem of global climate change.
We are becoming increasingly aware that we must change our ways in regards to our relationship with the environment and how we provide our populations with essential goods and services. Instituting a Distance Tax is a meaningful step available to us IMMEDIATELY to stimulate self-sufficiency and finance the transition to a sustainable future for all of the inhabitants of the planet.

Based in Franklin, Missouri, the mission of the Institute of Ecolonomics is to demonstrate that creating a symbiotic relationship between a strong economy and a healthy ecology is the only formula for a sustainable future. Ecolonomics is a word expressing the understanding that our ecology and economics are two sides of the same coin, emphasizes Peter LaVaute. E-mail: ecosense@howardelectricwb.com.