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by AnthonyMouse 2589 days ago
> One solution which I favor is nationalization of US oil companies.

Can you explain your reasoning behind this? It makes no sense to me.

This is fundamentally an economic issue. People will stop burning carbon when it's less expensive to do something else. If you nationalize the industry only to shut it down, that causes the cost of burning oil to increase (the intended effect), but then the higher prices spur foreign suppliers to increase production which blunts the effect. Meanwhile you suffer a massive domestic loss as you not only have to pay higher oil prices, you have to pay them to foreign suppliers like Russia and Saudi Arabia rather than domestic companies.

By contrast, a carbon tax reduces demand and makes production less profitable world-wide, so everyone reduces production (not just domestic producers), and the money from the higher prices goes to your own government which can either use it to subsidize alternatives or return it to citizens to mitigate the impact of the higher costs.

1 comments

Would that require a carbon tax to be applied world wide, or would you suggest that a country could apply the tax at the border for imported goods?