Tuesday, September 27, 2011

The Economist on carbon tax

I wrote a while ago here about a paper with various proposals to put a cost on CO2 emissions and how I like the idea of a carbon added tax. This evening I read the first complete endorsement of a carbon tax in The Economist. The blog post dismantles various arguments against such a tax and explains the incentives it will bring about. It's worth reading it on Free Exchange.
So if most economists agree on this issue, why is it not happening, what is politician's position on this issue? One the one hand the likes of the tea party don't wont any kind of tax whatsoever and another big group would prefer to spend money on their pet green projects, than to have a generic tax that would make the good and cheap technologies winners. Apart from being captive to special interests, their chronic lack of vision in handling various aspects of current economic challenges is disappointing.
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