| I prefer taxes because there's a reliable "shadow of the future". Market prices may go up and down depending on how many certificates are issued, how professional traders behave, and how technology progresses. So, I'd suggest the following for any nation or country: 1. Create an independent institution (like the European Central Bank) with the goal to get to carbon neutrality until, say, 2040 or 2045. 2. Give it the right to tax carbon dioxide, methane and other greenhouse gases. This should include tariffs for imported goods, and reimbursements for exported goods, and other means to make some special industries pay (airplanes and ships, mostly). 3. Give it the right to perform auctions for negative carbon emissions. If the world wants a chance to fix the problem, it'll need negative emissions, as far as I know. This is missing in your suggestion. It may also be faster to create new industries than change existing ones. My suggestion would also follow a well-known, although maybe no uncontroversial principle of "polluter pays". In the end, the price is determined by the goal, not by political considerations. If I'm not mistaken, such a carbon tax would rise until (positive) carbon emissions equal negative carbon emissions. At this point, carbon neutrality should be reached. Whatever else needs to be done is then up to future generations. |