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

[Gar Lipow <gar.lipow@xxxxxxxxx>]

On 11/28/06, Gar Lipow <gar.lipow@xxxxxxxxx> wrote:
> 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:

Messed up link
Proper link is:
On 11/28/06, Gar Lipow <gar.lipow@xxxxxxxxx> wrote:
> 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

I messed up the link -sent admin instead of public link:

proper link
http://gristmill.grist.org/story/2006/11/28/12853/017


> ==================
> 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.