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April 15, 2007

Carbon Tax Shenanigans

by Nicholas Beaudrot of Electoral Math

Tom Friedman goes digging for an environmental pony. And Andrew Sullivan too. We've been here before. Look, if the right-of-center green intellectuals think that a carbon tax is the way to go, they need to start convincing right-of-center politicians to say so. Otherwise we'll end up with a cap-and-trade system of emission credits and a brand spanking new federal/international agency to audit them. So if Andrew Sullivan, David Brooks, Tom Friedman et al. want to have a little club where they extol the virtues of a carbon tax, that's fine, but they'll need to do more direct advocacy to get the Governator and John McCain off of their cap-and-trade plans.

Note that this probably means first waging war with the Nihilist wing of Republican party that believes "tax" is a four-letter word, so that the GOP becomes something more than the party of more unsound tax cuts and more unsound wars. Then, they have to win the debate about how best to finance the small-but-not-nonexistent government. It's all a very long project, and I don't have any credibility with that constituency, so get cracking.

April 15, 2007 | Permalink

Comments

Glad for an opportunity to prove I'm not a nihilist, I've long supported a carbon tax. I like cap-and-trade in theory, but in practice it is too hard to do. Lots of fighting about where the emissions rights start out. Very ugly.

Posted by: TigerHawk | Apr 16, 2007 12:08:35 AM

Who do you have credibility with?

Posted by: FoolsMate | Apr 16, 2007 12:40:34 AM

You're correct about the right-of-center politicians, but the center and left-of-center politicians haven't exactly been profiles of courage on tax issues either. Will that result in cap-and-trade? Not if the politicians recognize that cap-and-trade is really a hidden tax, without the progressive tax shifting potential of a carbon tax. See the Carbon Tax Center website for discussions of progressive tax shifting, www.carbontax.org/issues/softening-the-impact-of-carbon-taxes, and the advantages of a carbon tax over cap-and-trade, www.carbontax.org/issues/carbon-taxes-vs-cap-and-trade.

Posted by: Dan | Apr 16, 2007 9:24:13 AM

So what exactly is wrong with a cap-and-trade system? I'm fine with a carbon tax, but I'm not sure why there's this great aversion to a cap-and-trade system.

In either case, the point is to control the negative exernality in a manner that harnesses incentives rather than using command-and-control regulations

Posted by: cheerful iconoclast | Apr 16, 2007 8:40:49 PM

I don't know enough about the issue to do more than repeat existing arguments, nor do I have any preference these days. The critique from the "left" & libertarian case against cap-and-trade is that it doesn't actually work ... that it is to easy to create fradulent or semi-fradulent carbon offsets, and a system to audit the carbon offsets would require a Big Government Bureaucracy.

Posted by: Nicholas Beaudrot | Apr 17, 2007 12:12:41 AM

So if we want a government that works - is that 'left' or 'right' ?

Posted by: opit | Apr 17, 2007 1:24:40 AM

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Posted by: judy | Sep 28, 2007 5:05:08 AM

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