Originally Posted by
Boomer
Ready for some bad news?
The amount of deadly, life-stealing carbon dioxide put out the tailpipe can be calculated from the amount of fuel you're burning.
From my recollection:
Jet-A (Hydrocarbons, Cs and Hs) + Oxygen ---> Water + Carbon Dioxide
Jet-A has different chemical compositions depending on the refining process, but for the most part you're looking at one part Carbon to two parts Hydrogen (plus some other stuff we don't want the EPA to know about... ssshhhhh...) But since one Carbon weighs as much as 6 Hydrogens, on a per-ton basis, 2,000 lbs of Jet-A will contain (roughly) 1500 lbs of Carbon and 500 lbs of Hydrogen.
Bad news is, one Carbon will hook up with two Oxygens, which means that 1500 lbs of Carbon will generate 5500 lbs of Carbon Dioxide.
Or in other words, at $20 per (metric) ton of CO2, Delta will be paying a Carbon Tax of $50 per (metric) ton of Jet-A, or 17 cents per gallon.
Bar can tell you how much that will cost Delta in a year.
Well, from the 10-K for 2011 Delta consumed 3,856,000,000 gallons of fuel.
That cost 11.7B dollars at a cost of $3.06 per gallon and represented 36% of our expenditures.
So another $0.17 per gallon would be $655M tax? What was our operating income for 2011? $1.975B? But net income of $854M? So look there, we can afford the tax.
If it increases 6% per year as per the article, that's a $8B contribution to a better tomorrow and a reduction in hurricanes over a ten year period.
So know you'd make $854M in profit every year from here on out. We don't score dynamically. If I do I'd have to guess how much is passed on to passengers and then what happens to demand and then of course capacity which effects or affects
the fleet and the pilots and it's just too complicated.
So everything here is static because it works best.
So in year 1 the carbon tax would only take 77% of DALs profit made off shameless bag fees and gouging. By year 5 it takes more than 100%, but don't worry you've saved enough over the first five that you don't come out behind until the nine year point. And we'll stop figuring from there.
I could've worked in the CBO.
Remember, the goal is to end hurricanes. After that, end volcanoes.