> A carbon tax is perhaps the most common proposed solution to the climate change problem. It would increase quality of life, not reduce choice nor induce rationing. Currently, burning carbon imposes externalities that are not paid by the emitter. This means that some of the carbon emitted is emitted even though it provides more costs than benefits. A carbon tax and dividend INCREASES economic efficiency by ensuring that CO2 is generated only when benefits exceed costs.
This paragraph strikes me as falling somewhere between wishful thinking and absolute gibberish.
Perhaps a carbon tax is a good idea but it only "increases economic efficiency" if you perform some sleight of hand by saying "if we keep emitting carbon economic production will drop off due to climate change". That kind of externality is highly theoretical.
There are things in the world that matter more than economic efficiency and if you want to argue that limiting carbon emissions will have a positive impact on some of those things, go ahead. I'm on board.
But I see this article, and your post, as people promising free lunches. And when people start offering free lunches, I get real skeptical. I am also skeptical of the ability of committees of experts to make decisions about economic efficiency. To me, this article has a disingenuous ring to it. It reads like people who've made up their mind and are inventing arguments to support their decision.
If there's so much money in "green living" then all of the people on the committee should quit their jobs and go into business. They can improve the world and make money at the same time instead of telling other people how to spend their money.
Yes, I'm arguing that doubling the price of gasoline with a carbon tax and dividend will increase economic efficiency. But claiming that doubling the price of gasoline is a "free lunch" doesn't pass the sniff test. :)
There are many ways we can improve our lives with collective action which cannot be done on the individual level. That's really bedrock to modern society. Virtually everything that you pay a tax for qualifies for this definition, and that amounts of a major fraction of total economic product.
You are others are also comparing apples and oranges. A carbon tax redistributes wealth, it does not destroy wealth, except (speculatively) in 1st or 2nd derivative effects.
If you had to pay $1,000 more per year on energy and got that much more back as a refund check, then yes, you are worse off. Presumably, you re-balance to use less energy. This leaves your spending in a more constrained state. That reduction of economic freedom might be worth -$50 to you, but not -$1,000.
This paragraph strikes me as falling somewhere between wishful thinking and absolute gibberish.
Perhaps a carbon tax is a good idea but it only "increases economic efficiency" if you perform some sleight of hand by saying "if we keep emitting carbon economic production will drop off due to climate change". That kind of externality is highly theoretical.