Addressing the Risks of Climate Change: The Environmental Effectiveness and Economic Efficiency of Emissions Caps and Tradable Permits, Compared to Carbon Taxes (PDF; 158 KB)
Source: American Consumer Institute
From Exexutive Summary (PDF; 157 KB):
“A new research study, authored by national economist and former Undersecretary of Commerce for Economic Affairs Dr. Robert Shapiro and sponsored by the American Consumer Institute, finds that carbon taxes would be a better response to the risks of global warming than emissions caps and tradable permits (commonly referred to as cap-and-trade). Examining the potential effectiveness, efficiency and administrative challenges of the two strategies for addressing climate change, Dr. Shapiro’s study finds that carbon taxes are a more effective way to lower emissions than a cap-and-trade program, because they force businesses and industries to choose between 1) reducing carbon consumption and increasing energy efficiency;or 2) paying the higher energy cost — and that choice provides the right incentives for countries and companies to reduce their CO2 emissions.”

This entry was posted on Thursday, February 15th, 2007 at 1:56 pm and is filed under Business and economics, Energy, Environment, Taxation. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.