Quote:
Originally Posted by Frequitude
Isn't that kind of like saying, "we should just set a price of oil so that companies can better plan"?
Its only a "false economy" in that it is created by a government imposed cap, not a basic human want. But its still an economy and a market.
Don't you have to let the free market figure out the most efficient uses of carbon and most cost effective carbon reduction/credit generating projects?
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Well if the real goal is to reduce carbon emissions then the tax works better (that is what putting a price on carbon actually means). Cap and trade doesn't accomplish that at all and allows for manipulations and such.
A carbon tax though sets the price and allows for the planning. It also means that by reducing emissions companies will pay less....which is a good thing to encourage innovation and moving towards reducing the carbon emissions.