Could Carbon Tax Be Clunky, Too


Hat tip to a co-worker of mine for pointing me in the direction of this Wall Street Journal article about France contemplating a carbon tax: "France Moves to Levy Carbon Tax on Fossil Fuels." Ominously, as my colleague points out, carbon tax policy may be as rife as cap-and-trade with horse-trading: loopholes are inevitable as the price of support, leading to inefficiencies that steeply mitigate the theoretical gains to environment and economics. I have posted early and often about a carbon tax's advantage over cap-and-trade being its simplicity, and am no forced, not necessarily to eat my words, but to be as vigilant about a carbon tax policy's details as I have been about cap-and-trade. Let the games begin!

Comments

Joel GL said…
You know what I'm going to say. All government is horse-trading with OPM.

It's incredible to me that people are shocked, shocked, about the Philadelphia political culture. Government is a club of the powerful at that level of government. The club has rules for admission. If you don't "pay" in actual money, you'll "pay to play" in some way.
LH said…
Joel, I hear you. Or, as I like to say, "Politics: America's favorite reality TV show."

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