It’s tax season and this makes many Americans pretty grumpy. According to a recent poll/parody, 27 percent of those surveyed indicate they would rather get an IRS tattoo than pay their taxes. Given the deep-seated ire that taxation can inspire in U.S. taxpayers, it’s not altogether surprising that calls for an economy-wide carbon tax do not find … Continue reading »
carbon pricing
Why the Pope is wrong on markets
On a recent speaking engagement in Germany I ran into Prof. John Schellnhuber, who was on his way to the Vatican to present Pope Francis’ major coming out document on climate change. After I got over feeling oh so cool for being one degree of Kevin Bacon removed from one of the most powerful figures … Continue reading »
It’s time to refocus California’s climate strategy
You know this already, but let’s review: Climate change is a global emissions problem. California produces about 1% of the world’s greenhouse gas emissions. Over the next few decades, the majority of emissions will come from developing countries. If we don’t solve the problem in the developing world, we don’t solve the problem. And lastly, … Continue reading »
In defense of picking winners
Virtually all economists working on climate change agree that we should price greenhouse-gas emissions. Doing so creates an incentive to reduce emissions without the government directing specific technology adoptions or activity changes, that is, without “picking winners.” Nearly as many economists agree that we should subsidize basic R&D. Doing so, accelerates the scientific breakthroughs that … Continue reading »
Putting a collar on carbon prices
When it was launched in 2005, the European Union cap and trade program for greenhouse gases (known as the Emissions Trading System or EU-ETS) was a bold and important step in addressing climate change. But from the beginning, the EU-ETS has often been a painful learning experience, much of the learning by politicians: – A … Continue reading »
What’s Keystone XL got to do with it?
Let’s face it. The opposition to the Keystone XL pipeline isn’t about dirty oil. It’s about oil. James Hansen and the other leading opponents focus on the greenhouse gases is that will be released when all of the oil in the Canadian tar sands (Canada’s relabeling as “oil sands” just hasn’t stuck with me) is … Continue reading »
Tipping points and the social cost of carbon
Economists talk about something called the “social cost of carbon.” Here’s the basic idea: You may pay for the gas you put in your car, but when you burn it, you emit carbon dioxide, which imposes costs on the rest of society by accelerating the pace of climate change. The social cost of carbon, measured … Continue reading »