Carbon Tax

[brucejoel99]

Yes, b/c it reduces emissions by encouraging the lowest-cost emissions reductions (& does so w/out anybody needing to know beforehand when & where these emissions reductions will occur), encourages investors & entrepreneurs to develop new low-carbon technologies, & generates government revenue that can be used in productive ways. Plus, a carbon tax offers stable carbon prices, so energy producers & entrepreneurs can make investment decisions w/out fear of fluctuating regulatory costs, unlike w/ cap & trade. Additionally, if emissions reductions are cheaper than expected (which might occur if, for example, an economic downturn causes emissions to fall), then a tax provides a continuing price signal whereas cap & trade doesn't encourage reductions beyond the emissions target.

Above all else, though, a carbon tax actually addresses the risks of climate change (which should really be most of what, if not all that, matters at this point) by ensuring we can achieve the greater climate policy ambition we need.