Common Tragedies

Thoughts on Environmental Economics

Carbon Pricing Quote of the Day

Posted by Evan Herrnstadt on February 14, 2008

From Tim Haab at Environmental Economics:

“To me a carbon tax is a political non-starter. There’s no way to get universal buy-in for the size of the tax that would be equivalent to the the cap and trade permit price. Which do you think would go over better? We’re putting a carbon tax of $10 per ton, or you can buy a carbon emissions permit for $10 per ton. Cap and trade is hot right now and politically feasible.

2 Responses to “Carbon Pricing Quote of the Day”

  1. Rich Sweeney said

    that cap and trade is so hot right now.

  2. Tmoney said

    For the PE types out there – why should it be that cap and trade is ever more politically feasbile than a tax? Surely its not because the voting public knows enough economics to identify the differences between the two. Is it because the public is somehow deluded into thinking that cap’n’trade won’t cost anything, or will cost less somehow? Or is it simply the case that people don’t care about a tax if its not called on? Or something else?

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