As with climate science, the likely truth about climate economics is somewhere in the middle.
But the fact is, we probably weren’t paying enough for gasoline even at its highest levels, because we weren’t paying the full costs of producing and using it...We would like pollution taxes to work through the substitution effect and not through the income effect. We don’t want our policies to leave households, and especially poor households, holding the bag while we solve pollution problems.
A Different Shade of Green(originally published in PRISM magazine, Jan/Feb 08) Fear is a powerful motivator. If you can inspire fear, you can get people to do almost anything. (If you can also inspire loathing, you can get them to do anything.) Evangelicals and environmentalists have a good deal in common. Fear, accompanied by an … Continue reading Fear Not!