Quote:
Originally Posted by someone123
This is a misconception. Probably the #1 economic misconception right now.
Transportation has a cost, sure, and all else equal it's cheaper to consume something close to where it is produced. But all else is not equal and the transportation costs (dollars and carbon footprint) in the modern economy are a tiny portion of the total, because transport by ship in particular has become incredibly efficient. It's very easy for some other factor to outweigh the cost of transportation.
Exmaple:
Tons of CO2 emitted when manufacturing a Land Rover Discovery: 35
Tons of CO2 emitted to ship a Land Rover 20,000 km: 0.5-2
That's the maximum distance the car could be shipped. If we were talking about shipping it 200 km vs 2,000 km it would be really easy to imagine some other factor like power source having a bigger impact than transportation (one country has hydro, one country has coal). It's also easy to see why it might be good to have one big, heavily optimized Land Rover factory instead of a bunch of small ones scattered all over.
Just imagine what the math looks like for an iPhone that sells for $1,000 and weighs 150 g.
The story with food production is similar. Some places are better or worse places to grow food, and generally the big producers have economies of scale that hugely outweigh transportation. If we didn't have a global network of food shipping we'd be hugely worse off. In fact we would just not be able to support the populations that exist right now.
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I agree 100% with all of that and I was already in agreement with all of it (i.e. my own position sincerely didn't change one iota - but I should probably work on trying to make it clearer to milomilo and you).
I certainly never ever hinted that I thought that bananas inefficiently grown in a huge greenhouse powered by burning fossil fuels in Calgary for consumption by Calgarians could ever be anywhere close to being in the running. When I'm saying shorter distance would (under well-designed carbon pricing) become more of an advantage than it currently is, and therefore have more impact on customers' decisions than it currently does, I mean that with proper carbon pricing you'd see more of a difference between buying, in North America, Guatemala-grown bananas, vs buying India-grown bananas, than you currently see. Or buying bananas altogether (in Calgary), versus buying whatever happens to naturally, cleanly, and economically grow in Calgary, even if that stuff's less appealing than bananas.
And when I floated the idea of credits for fresh fruits/veggies, it's because I think the greater social consequences of having many people avoid those because they've become too pricey, and instead choosing to eat unhealthy crap, may be worth the trouble (which should definitely not be major - how hard would it be to just discount anything that's fresh fruits/veggies by a certain percentage?)
Generally, I'm 100% with milomilo on the fact that well-designed carbon pricing takes all the decisions automatically for us. The only decision it doesn't take is when it's about healthy vs unhealthy choices (for one's body health, not wallet's health). Sorry if that wasn't clear...?