February 28, 2009

PIGOU VS GOLDBERG:

Obama’s Greenhouse Gas Gamble (JOHN M. BRODER, 2/27/09, NY Times)


[T]he full costs and benefits of controlling greenhouse gas emissions remain unknown, and perhaps unknowable. While there is rough consensus on the science of global warming — with some notable and vocal objectors — there is less agreement on the economics of the problem and very little on the policy prescriptions to address it. And while a cap-and-trade approach bears substantial cost, it also brings a benefit whose value is incalculable — a steady decrease in emissions that scientists say will over time reduce the risk of climate catastrophe.

Mr. Obama’s budget estimates $645 billion in cap-and-trade revenue over the next 10 years that will largely be paid by oil, electric power and heavy industries that produce the majority of carbon dioxide and other gases blamed for the warming of the planet. Many of these costs are expected to be passed on to consumers.


Why such a convoluted contraption--which has already failed in Eutrope--rather than direct taxation of consumption?

Posted by Orrin Judd at February 28, 2009 6:19 PM
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