- Regardless of where you stand on global warming, pollution is bad. Clean air is good. Without external restraint, our shared environment becomes a tragedy of the commons. A carbon tax is an effective, market-neutral means of increasing the cost of pollution production.
- A carbon tax, unlike cap-and-trade, permits the market to choose where and when efficiencies can be achieved/improved upon.
- Unlike cap-and-trade, a carbon tax is simple, direct, and less subject to stealth manipulation by politicians.
Today, the Weekly Standard website made available an article by Charles Krauthammer, discussing his support for the Net-Zero Gas Tax.
Are the political winds shifting? It is hard to see the public agreeing to a gasoline tax increase or price floor when the economy is souring, but maybe there is a chance.