You can't conduct an orchestra with an invisible hand: The problem with carbon taxes

[Gar Lipow <gar.lipow@xxxxxxxxx>]

You can't conduct an orchestra with an invisible hand: The problem
with carbon taxes
Gar Lipow at 4:39 PM on 28 Nov 2006

Jason D Scorse agrees with the Reason article arguing that the way to
phase out fossil fuels is to tax them -- to make their price reflect
some or all of their social costs (referred to by economists as
"Pigovian" tax). Fossil fuels will become more expensive, low-carbon
technology will become competitive, and everybody will do the "happy
happy joy joy" dance.

Unfortunately, a strategy based mainly on price increases will work
ineffectively, if at all -- a position for which we have both
historical evidence and good theoretical grounding. (This is not to
say that Pigovian taxes have no place, but as a supplementary measure,
not a primary one.)

You can find the rest at:
http://gristmill.grist.org/admin/story/2006/11/28/12853/017

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Oh and  hi to Paul Baer.  Would welcome your input on this. I know in
the past you have been a big fan of artificial markets as a primary
means of controlling emissions. Your latest proposal seems more
agnostic on the subject - offering cap and trade as simply one means
of implementation. Have you changed your mind on this? If not, I'd be
curious to get your take on the issues I've raised.