[lbo-talk] You can't conduct an orchestra with an invisible hand - the problem with carbon taxes

Gar Lipow the.typo.boy at gmail.com
Tue Nov 28 21:31:37 PST 2006


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

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