November 28, 2018
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)