Comments on: Problem with cap-and-trade is substance, not style http://blogs.reuters.com/james-pethokoukis/2010/03/11/problem-with-cap-and-trade-is-substance-not-style/ Politics and policy from inside Washington Sun, 07 Apr 2013 21:23:48 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: James Handley http://blogs.reuters.com/james-pethokoukis/2010/03/11/problem-with-cap-and-trade-is-substance-not-style/comment-page-1/#comment-7366 James Handley Fri, 12 Mar 2010 22:28:18 +0000 http://blogs.reuters.com/james-pethokoukis/?p=3488#comment-7366 Yes, use the most powerful economic medicine available -- prices -- to dislodge the "incumbent technologies": fossil fuels. For example, as long electricity can be made from coal at a fraction of the cost of renewable alternatives, low-carbon energy alternatives can't gain a foothold. Cap-and-trade is a hidden, volatile and regressive carbon tax, which Wall St would set and collect. A revenue-neutral carbon tax is explicit, predictable and with revenue recycling as you suggest, it's progressive. See http://www.carbontax.org. Yes, use the most powerful economic medicine available — prices — to dislodge the “incumbent technologies”: fossil fuels. For example, as long electricity can be made from coal at a fraction of the cost of renewable alternatives, low-carbon energy alternatives can’t gain a foothold.

Cap-and-trade is a hidden, volatile and regressive carbon tax, which Wall St would set and collect.

A revenue-neutral carbon tax is explicit, predictable and with revenue recycling as you suggest, it’s progressive. See http://www.carbontax.org.

]]> By: CTF http://blogs.reuters.com/james-pethokoukis/2010/03/11/problem-with-cap-and-trade-is-substance-not-style/comment-page-1/#comment-7355 CTF Fri, 12 Mar 2010 13:33:26 +0000 http://blogs.reuters.com/james-pethokoukis/?p=3488#comment-7355 Yes! A revenue-neutral carbon tax is absolutely the best means by which to stem the tide of global climate change. Yes! A revenue-neutral carbon tax is absolutely the best means by which to stem the tide of global climate change.

]]> By: drewbie http://blogs.reuters.com/james-pethokoukis/2010/03/11/problem-with-cap-and-trade-is-substance-not-style/comment-page-1/#comment-7314 drewbie Thu, 11 Mar 2010 17:09:18 +0000 http://blogs.reuters.com/james-pethokoukis/?p=3488#comment-7314 Returning the tax to the taxpayers would completely defeat the purpose of it. The idea is to make carbon-based energy more expensive so people buy something else. Offering it as a rebate to make clean energy more affordable could work. The trouble with the new "pollution reduction" name is its innaccuracy. The C&T experiment called the Kyoto treaty showed that it has zero impact on carbon emmission. Returning the tax to the taxpayers would completely defeat the purpose of it. The idea is to make carbon-based energy more expensive so people buy something else. Offering it as a rebate to make clean energy more affordable could work.

The trouble with the new “pollution reduction” name is its innaccuracy. The C&T experiment called the Kyoto treaty showed that it has zero impact on carbon emmission.

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