CITIZEN POWER ALLIANCE

The Energy and Environment blog at TNR has a post up replying to Will Wilkinson’s post arguing that we don’t know how to set the price on a theoretical carbon tax. The gist of the reply is the sensible-sounding observation that “There's essentially no disagreement at all that there's some externality associated with carbon emissions, so the optimal carbon tax is certainly not zero.”

I believe that this is not so obvious, however, when you think it through, for at least three reasons.

(Click to read entire article)