Monday, September 24, 2007

Cap and Trade vs. Carbon Tax

A discussion at Asymmetrical Information.

1 comment:

Stephen said...

Both are bad ideas unless there is a source of alternative energy. Capping carbon in a coal-based electric system means electricity shortages. Taxing it means expensive energy, which impacts lower classes hardest and can cause inflation and economic problems.

Both approaches are disastrous UNLESS you have enough nuclear power to offset it. You can't just expect co2 to go away unless you replace the energy source with something better.