Given the debate over BC’s carbon tax, we thought we would search about for some expert opinion on carbon emission policy. Few leading thinkers present the issue as an either/or carbon-taxes-or-cap-and-trade option. Most policy analysts favour using both instruments.
An exception is Dr. William Norhaus, the renowned Professor of Economics at Yale University, who recently called for “an internationally harmonized system of carbon taxes.”
This, Nordhaus said, would be much more efficient than an international patchwork of emissions caps; small countries wouldn’t have to worry about achieving certain emissions levels and the system would be much less prone to corruption or cheating.
Most importantly, Nordhaus said, Taxes, “while hated,” are a long-standing and “proven” financial instrument.