Dear Editor,
We are Economics students at the University of Guyana writing in support of a proposal that will allow Guyana (and Suriname) to make a bold contribution to achieving all the four stated goals of the UN Climate Change Conference (COP26), which begins in Glasgow today, (Oct 31, 2021) under the theme “Together for our Planet.” This proposal will effectively address the environment desecration that will occur when the fossil fuels being produced in our recent and blooming oil and gas industry are combusted. Since 2019, Guyana has established its petroleum and natural gas industry and began its production. By now, we should all be aware of how detrimental this particular industry and its production processes are to the environment. Over the last century there has been an adverse change in our climate due to the release of greenhouse gases into our atmosphere. According to UN Secretary General Antonio Guterres “The evidence is irrefutable: greenhouse gas emissions are choking our planet and placing billions of people in danger. Global heating is affecting every region on Earth, with many of the changes becoming irreversible. We must act decisively now to avert a climate catastrophe.”
We are also aware of the paradoxical complexities this industry implies. Guyana (and Suriname) are biodiversity rich, with significant forest cover and as such plays a major role in the climate’s preservation and environmental sustainment. Now that we have discovered these heavily sought after natural resources and capitalized on this black-gold mine, this industry is going to add to the CO2 emission levels when the oil is combusted, thus negating the efforts made towards the global Net Zero objective. As upcoming economists, we would like to bring the public’s attention towards the importance of implementing a ‘pigouvian tax’ on our petroleum and natural gas market, more specifically an upstream carbon tax on every barrel of crude oil purchased from Guyana. Essentially, what this means is that we are to enforce a charge, equal to the Social Cost of Carbon on our oil exports to get oil producers to internalise the negative externalities (negative effects imposed on the environment) caused by the industry. Note that tax revenue gained from the Pigouvian Tax is specifically intended for Guyana’s climate/economic friendly objectives to counterbalance its CO2 emissions.
For further details on this proposal, we would like the reader to reference Dr. Thomas B. Singh’s proposal on this tax discussed in his 2021 Green Economy Workshop whose previous proposal partnered with Guyana EPA generated over US$2 million in revenue. We note as well that UG Chancellor, Edward Greene, has carried Dr. Singh’s proposal on his website at “Global Frontier Advisory and Development Services”. It would be an honour to have our voices heard and others who have the ability to make a change. This is how we know that our actions matter in this movement towards a safer environment, encouraging us to strive harder for a greener earth.
Sincerely,
Anessa Bissoondat
Jessica Campbell
Celine Chase
Kelli Grandsoult
Oureanna Lake
