Thanks Lanny.
I honestly don't give a whit whether the GHG argument as it relates to global warming is right or wrong - I think carbon and all other pollutants are a clear market externality that is creating economic inefficiency. I think pricing these things will force the economy to adapt - we would become less energy intensive mostly b/c the waste built into the economy via artificially low energy prices will be driven out. IMO, burning fossil fuels has clear costs that are not recognized in a market due to the externality issue, i.e. public cost but no private party faces the cost. Clearly the size of the externality is unknown and that is where the global warming question enters the equation for me, but it seems clear to me it is certainly there via acid rain, smog, increased health issues, depletion of finite resources, etc.
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