You can't conduct an orchestra with an invisible hand: The problem with carbon taxes Gar Lipow at 4:39 PM on 28 Nov 2006
Jason D Scorse agrees with the Reason article arguing that the way to phase out fossil fuels is to tax them -- to make their price reflect some or all of their social costs (referred to by economists as "Pigovian" tax). Fossil fuels will become more expensive, low-carbon technology will become competitive, and everybody will do the "happy happy joy joy" dance. Unfortunately, a strategy based mainly on price increases will work ineffectively, if at all -- a position for which we have both historical evidence and good theoretical grounding. (This is not to say that Pigovian taxes have no place, but as a supplementary measure, not a primary one.) You can find the rest at: http://gristmill.grist.org/admin/story/2006/11/28/12853/017 ================== Oh and hi to Paul Baer. Would welcome your input on this. I know in the past you have been a big fan of artificial markets as a primary means of controlling emissions. Your latest proposal seems more agnostic on the subject - offering cap and trade as simply one means of implementation. Have you changed your mind on this? If not, I'd be curious to get your take on the issues I've raised.
