A carbon tax is a 'no-brainer'?

Catherine Rampell of the Washington Post is suggesting that a carbon tax is a "no-brainer" to combat climate change and will generate innovation.  Here's the thing.  Taxing carbon is exactly how you get faster innovation.  That's kinda the point. A carbon tax prices in, upfront, the hidden costs of burning fossil fuels, including pollution and the warming of the planet.  In the near-term, a carbon tax disincentivizes the purchase of carbon-intensive products, of course.  But over the longer-term, it also increases demand for – and thereby incentivizes the development of – cleaner, less-carbon-intensive technologies.  If you want to accelerate innovation in batteries, electric cars, solar, wind, etc., a carbon tax is a no-brainer. I would ask her and all the others who suggest taxing the poor and middle class, "Which previous use taxes on the poor...(Read Full Post)
You must be logged in to comment.