NYC Mayor Michael Bloomberg is now out in favor of a carbon tax (see also this post by Charlie Komanoff). This is significant because it makes him one of the very few nationally-prominent (or at least nationally-known) politicians to stake out for a C tax over cap-and-trade.
Bloomberg’s support for a C tax is important both because he is seen as a technocrat’s technocrat and because he presides over eight million carbon consumers. Unfortunately, as Redburn illustrates well in his article, carbon tax proponents have more than an uphill battle to get their way on climate mitigation legislation.
It’s not that the carbon tax or cap-and-trade? debate is over already (which, really, would be before it even began), it’s that there is a strong perception in the community that it is over. Wonky types (which in my usage are political realists, not optimists), especially those with some influence on the policy development process, have been telling me personally and conference crowds (like this one) that it’s all over and cap-and-trade is a done deal. This perception might be more important than (the way I see) reality, which is that nobody wants to deal with this problem and because of this, all options are still on the table. It’s not that I am full bore on the C-tax train either, but I would like to see an honest, complete national debate on the two approaches before the “elites” declare the policy problem solved. In particular, I would love to see this issue come out during primary debates for both parties, to at least introduce the average Joe to the issue. Of course, the vagaries of carbon economics will be viewed by party handlers as too nuanced and difficult to explain during debate, but I’ll preemptively call bullshit on that line. Try us.
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