Glenn Hubbard favors tradeable permits over a carbon tax

Here is the scoop.  John Tierney, citing Ron Bailey, disagrees; I score this one for Tierney if only on public choice grounds.  Key argument:

The prospect of a cap-and-trade system in America has already set off a lobbying frenzy in Washington by industries hoping to write the rules to their advantage.  Given legislators’ eagerness to please their hometown industries, it’s easy to imagine them being just as generous as European politicians.  By contrast, a carbon tax would be more straightforward – simpler to establish and enforce…

Read Greg Mankiw as well.


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