Connect with us

Published

on

Streetsblog USA this morning published my essay, Instead of Subsidizing the ‘Super-Drivers,’ We Should Soak Them: Piling subsidies on subsidies, even if well-meaning, fails to rein in the full cost of driving. I’ve cross-posted it here to allow comments and add tables and graphics.

 — C.K., Jan. 29, 2024

One-tenth of American motorists, we’ve just learned, consume more than a third of U.S. gasoline.

This lead-footed cohort, dubbed “superusers” in a recent analysis, burn almost as much fuel — and, thus, spew nearly as much carbon dioxide — as all auto drivers in China. Or, reformulated, the most motor-dependent one-tenth of U.S. drivers burn the same amount of gasoline and thus generate the same carbon emissions as all motorists in the European Union and Brazil combined.

The analysis, by Seattle-based Coltura, casts a hard light on America’s transportation culture. Unfortunately the firm’s policy prescription — new subsidies to entice superusers into buying climate-friendlier electric vehicles — is a mere Band Aid, and an ineffectual one to boot.

What Coltura’s Analysis Shows

The most startling revelation from the Coltura analysis is the rank inefficiency of the superusers’ rides. You would think that anyone driving 110 miles a day — the purported average for the 21 million superusers identified in the report — would rush to the nearest used-car lot and drive off in a high-mileage vehicle. But you would be wrong. Coltura’s traveling tenth eke out a measly 19.5 miles a gallon, on average. That’s a whopping 18 percent worse than ordinary drivers’ average.

The toll on superusers’ household budgets is immense: an average $530 monthly tab at the pump, according to Coltura. Upping their mpg to merely the same 24 mph average as other motorists would save them $97 a month. Those savings would hit $175 if the superusers clambered further up the mpg ladder and outdid the norm by the same percentage (18 percent) they now lag it. Annualized, that’s a cool two thou per vehicle.

Summing Agriculture and Blue Collar, and apportioning Other among the eight prior categories, only 24% of superusers are doing physical work that might require a large vehicle.

What’s that, you say, superusers are lugging drywall and cement mix and portable generators all over the county and can’t do with a more modest ride? Nonsense. According to Coltura, only 19.1 percent of superusers are blue-collar workers. Throw in another 0.7 percent who work in agriculture, and at most 20 percent routinely haul mountains of stuff requiring a pickup or SUV. The rest are professional/legal (16 percent), business/finance (15 percent), office/administration (10 percent) and other non-physical workers. Even if we prorate the 17 percent of superusers classified as “others,” at most 24 percent of Coltura’s traveling tenth qualify as Grainger’s “the ones who get it done” who might need a kick-ass vehicle with which to do it.

By crunching these figures from Coltura, we calculated that superusers’ average gas mileage is just 19.5 mpg. The U.S. 2021 light-duty fleet average of 22.4 mpg (per FHWA “Highway Statistics,” Table vm1) computes to 23.9 without superusers.

If you really want your head to explode, check out Coltura’s list of superusers’ 20 most popular vehicles. The Chevy Silverado is the choice of 7.4 percent of superusers, followed closely by Ford’s F-150 (6.4 percent). You have to drop down to #12 on the list to find the first vehicle that’s not an SUV or pickup. All told, no more than a handful of the top 20 are sedans.

Their Solution … And Ours

What to do? Ordinarily, one wouldn’t need to care that close to 20 million Americans are too Foxed-up or broke to dump their vampiric, oversized vehicles or off-ramp their road-warrior routines. After all, superusers have chosen to bust their budgets and warp their daily lives, right? Except, duh, the climate we all inhabit is breaking under their emissions — not to mention the myriad other damages from driving 110 miles a day: crashes, traffic, “local” air pollution. As I said up front, society has an interest in enticing them, somehow, into less-inefficient vehicles.

Coltura’s solution is to tie electric-vehicle incentives, messaging and perhaps even provision of charging infrastructure, to drivers’ current gasoline consumption. Validated superusers, based on sworn statements of odometer readings and vehicle make and model (hence, mpg) would qualify for extra rebates, financing and other inducements beyond those offered in the Biden Inflation Reduction Act. These would weaken the glue — economic, ideological or otherwise — that binds superusers to their gas-guzzlers even though it’s worth asking: Why do we need to subsidize someone into buying an EV when switching to a battery-powered car or truck would at once zero out the $6,000 that the average superuser shells out annually on gasoline?

At first blush, Coltura’s approach has a ring of reasonableness. But vagueness suffuses it, not just in the Coltura report, but in its lead authors’ 2022 podcast interview with climate-energy pundit David Roberts. In fact, on closer examination the whole idea comes off as a pig in a poke, with its administrative apparatus, the gaming, the appeals, the interminable wrangling to fashion the “right” incentives and eligibility. Not to mention the inevitable special pleading of “disadvantaged” motorists who almost qualify as superusers but not quite. And the jockeying in states or Congress to pay for the incentives and the bureaucracy.

What makes this prospect especially dispiriting is the existence of an alternative policy instrument that, compared to Coltura’s “targeted” but cumbersome intervention, could do far more to cut gasoline consumption — not just by superusers but by all U.S. motorists: concerted increases in U.S. motor fuel taxes.

Gasoline taxes can be raised in two ways: by boosting the U.S. excise tax, which has been stuck at 18.4 cents a gallon since Oct. 1, 1993 (losing half its heft to inflation since then); or by instituting a carbon tax, which would raise the prices of all fossil fuels including petroleum products.

Resistance to auto dependence was more radical three decades ago, as in this 1993 Village Voice broadside by journalist Daniel Lazare.

The impact on usage would be small in the short run, but it would rise over time, as households switched to higher-mpg vehicles, cities and suburbs up-zoned, and cultural norms adapted to costlier driving. EV’s would be elevated, of course, but vehicle electrification would be only one of many means of getting off gasoline.

My regression analyses of U.S. gasoline demand — a subject I’ve studied for decades — suggest that a $1 increase in the price at the pump would trigger only a 3- to 4-percent drop in usage overnight, but triple that impact within a decade — roughly the same decrease as eliminating one-third of U.S. superusers’ consumption. But that’s just a start. My 1960-2015 data don’t reflect changing societal currents, nor do they capture digital tech’s potential to match people with nearby jobs or connect parallel travelers to enable work and play with fewer miles driven.

“Making other arrangements” in the face of climate chaos is how the social critic James Howard Kunstler once referred to this social reconfiguration. Sadly, as the caterwauling against New York’s congestion pricing program by entrenched interests from New Jersey politicians to teachers’ union bosses attests, the American ethos today would rather cling to dysfunction than attempt change.

This isn’t to make light of either the jarring changes that superuser motorists will face from robust fuel taxes, or the political difficulty of enacting them. (The website of my Carbon Tax Center is replete with potential antidotes to both, even as it acknowledges the difficulties.)

Nevertheless, these hurdles shouldn’t deter livable streets advocates from advocating much higher fuel taxation. Piling subsidies on subsidies, even if well-meaning, only makes our system more complex and opaque. If we don’t advocate for full-cost pricing that tells the truth about motorization, who will?

Carbon Footprint

Insetting vs Offsetting: Which Actually Counts Toward Your Scope 3 Targets

Published

on

The accounting differences that decide whether your nature investment shows up in inventory, in BVCM, or nowhere at all.

The question reaches a procurement team about three weeks before the next sustainability committee meeting. Someone has read about insetting. Someone else has just signed off on an offset purchase. The CSO wants to know if the two are interchangeable. The answer is no, and the GHG Protocol Land Sector and Removals Standard is the reason why.

This article walks through what each term means at audit-grade specificity, what the standards actually say about how each gets counted, and how to decide which tool fits which target. The insetting vs offsetting question is one of the most-searched in corporate climate strategy, and one of the most poorly answered. By the end of this piece, you should be able to brief a committee on the difference without notes.

The two definitions, in plain English

Offsetting means buying carbon credits generated outside your value chain and retiring them against your residual emissions. The reduction happens somewhere else, financed by you, and the credit is the receipt.

Insetting means investing in emission reductions or removals inside your own value chain, typically with suppliers, where the reduction is directly linked to the products and services you buy. The reduction happens inside the boundary of your Scope 3 inventory, and the accounting treatment is fundamentally different.

The shorthand from the University of Oxford’s Nature-based Insetting Initiative is useful: insetting is what you do with the supply chain you have; offsetting is what you do with the supply chain you do not have.

What the GHG Protocol Land Sector Standard actually says

The GHG Protocol Land Sector and Removals Standard, finalised in 2024 after a multi-year pilot, sets the rules for how land-based emission reductions and removals enter corporate inventories. The Standard distinguishes between inventory accounting (Scope 1, 2, and 3) and project or intervention accounting (a separate methodology for crediting).

For insetting, the practical implication is that supplier-level interventions, when properly measured and attributed, can reduce your Scope 3 category 1 (purchased goods and services) emissions in your inventory. The reduction is not a credit retired against the inventory; it is a lower inventory number, period.

For offsetting, the credit is retired separately. It can be reported as a contribution toward a net-zero claim under the SBTi Beyond Value Chain Mitigation framework or as part of a VCMI Carbon Integrity claim, but it does not lower the inventory number.

A practical consequence: if your Science Based Target requires a 50% absolute reduction in Scope 3 emissions by 2030, insetting moves you toward the target. Offsetting does not. This single point of difference reshapes the procurement decision.

When insetting counts toward Scope 3 (and when it does not)

Insetting counts toward Scope 3 only when several conditions are met:

  • The intervention must occur with an entity in your value chain.
  • The emissions reduction or removal must be measured against a defensible baseline.
  • The reduction must be attributed to your share of that supplier’s output, not double-counted with other buyers.
  • It must follow the inventory accounting rules in the GHG Protocol Land Sector Standard, not the project accounting rules used to generate credits.

The most common failure mode is double counting. If your supplier sells the same reduction as a credit on the voluntary market and also reports it to you as a Scope 3 reduction, the math breaks. The Standard requires you to address this risk, typically by purchasing and retiring the supplier-issued credit as part of your inventory or by contractual provisions that prevent the supplier from selling the reduction twice.

When insetting does not count toward Scope 3: when the intervention sits with a supplier you do not buy from, when the baseline is not defensible, when the attribution is unclear, or when the documentation does not survive audit. Those cases default to Beyond Value Chain Mitigation, which is still useful but operates on a different ledger.

The procurement and supplier engagement question

Insetting is harder than offsetting. That is the unfashionable truth most buyers eventually confront. Offsetting is a transaction; insetting is a relationship.

To run an insetting program, you need supplier mapping precise enough to know which farms or facilities sit at which Scope 3 boundary. You need an engagement model that gets suppliers to participate, which usually requires multi-year commitments and shared economics. You need an MRV architecture that measures the right things and produces audit-ready documentation. And you need a contractual structure that prevents double counting and protects both sides.

The trade-off you receive in return is significant. Reductions count against your inventory rather than your residual. Supplier relationships deepen, which protects sourcing continuity. Yield and quality improvements often follow regenerative interventions, which reduces your input cost over time. And the regulatory file, under CSRD, CSDDD, EUDR, and the SBTi FLAG Guidance, is materially stronger.

Choosing the right tool for the right target

A practical decision rule. If your target is a science-based Scope 3 reduction and you operate in a FLAG sector or source FLAG commodities, insetting is the structurally correct tool. If your target is a net-zero claim that includes neutralising hard-to-abate residual emissions outside your value chain, BVCM via high-integrity offsets is the structurally correct tool. Most companies with material Scope 3 exposure need both, in different proportions, sequenced over time.

The sequencing matters. Insetting takes longer to stand up but produces a permanent reduction in the inventory. Offsetting can be transacted faster but does not change the inventory and now sits under tighter claim restrictions. Treat them as complementary tools with different jobs, not as substitutes. The Accountability Framework Initiative and the IUCN Global Standard for Nature-based Solutions both provide useful guardrails for the insetting side, with biodiversity, human rights, and benefit-sharing requirements that go beyond carbon math.

If you are mapping a Scope 3 reduction roadmap and need to scope which interventions count toward your inventory versus which sit in Beyond Value Chain Mitigation, the carbon and sustainability experts at Carbon Credit Capital can help you structure a nature-based supply chain investment program that fits your FLAG exposure, your target architecture, and your audit horizon. Schedule a consultation.

Continue Reading

Carbon Footprint

Net zero needs nature: a carbon credit guide

Published

on

Net zero is often described as a balancing act: cut what you can, account for the rest, and reach zero on the ledger. That framing is useful, but it leaves something out. It treats every tonne of carbon as interchangeable and every route to zero as equally sound, while the science tells a more specific story.

Continue Reading

Carbon Footprint

Deforestation in Malawi: causes and solutions

Published

on

Malawi has lost a striking share of its forests over the past three decades. Woodlands that once covered well over a third of the country now cover less than a quarter, and the pressure on what remains is increasing. Behind those figures sit two practical questions: what is driving the loss, and what reverses it?

Continue Reading

Trending

Copyright © 2022 BreakingClimateChange.com