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.

Comments

like ray kurzweil mention that double-exponential growth in technology would bring us nearer to a super technology machine which involve all humankind knowledge with a cost of refrigerator. This would give consequences that we might have a chance to have a clean technology with minumum cost. What we might inclined to do now, is to urge the innovation. In this case cap and trade system looks better then carbon tax. Incentives for the inventor should be larger than incentives and comfortness for the company

Forget the carbon taxes and tradeable permits and all that crap. Just stop subsidizing transportation.

- Josh

Point 1 applies equally, if not more so, to the capping system. I would say it is an even greater weakeness since we are much less likely to address the rebalancing of the income tax structure to smooth the transition and prevent the poor from bearing a greater amount of the tax burden.

You can forget either option. Seriously, either option means much higher prices for gas and electricity, not to mention higher prices for any good or service whose production relies on gas or electricity. Politically, therefore, neither option is possible, and all you should know that. We are already trying to pass laws that figuratively hang oil company executives for high gasoline prices.

What planet do you guys live on?

all you should know that. We are already trying to pass laws that figuratively hang oil company executives for high gasoline prices.

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