The Case for a Carbon Tax

by Hsu, Shi-ling

• ISBN13: 9781597265317
• ISBN10: 1597265314
• Format: Hardcover
• Copyright: 2011-09-15
• Publisher: Island Pr

Summary

There's a simple, straightforward way to cut carbon emissions and prevent the most disastrous effects of climate change-and we're rejecting it because of irrational political fears. That's the central argument of The Case for a Carbon Tax, a clear-eyed, sophisticated analysis of climate change policy. Shi-Ling Hsu examines the four major approaches to curbing CO2: cap-and-trade; command and control regulation; government subsidies of alternative energy; and carbon taxes. Weighing the economic, social, administrative, and political merits of each, he demonstrates why a tax is currently the most effective policy. Hsu does not claim that a tax is the perfect or only solution-but that unlike the alternatives, it can be implemented immediately and paired effectively with other approaches. In fact, the only real barrier is psychological. While politicians can present subsidies and cap-and-trade as "win-win" solutions, the costs of a tax are immediately apparent. Hsu deftly explores the social and political factors that prevent us from embracing this commonsense approach. And he shows why we must get past our hang-ups if we are to avert a global crisis.

Author Biography

Shi-Ling Hsu is Professor at the University of British Columbia Faculty of Law. Previously, he was Associate Professor at the George Washington University Law School, Senior Attorney and Economist for the Environmental Law Institute in Washington D.C. and Deputy City Attorney for the City and County of San Francisco.

Table of Contents

Acknowledgments	p. xi
Introduction	p. 1
Climate Change Policy Alternatives	p. 13
Carbon Taxes	p. 15
Command-and-Control Regulation	p. 17
Cap-and-Trade	p. 20
Government Subsidies	p. 23
Ten Arguments for a Carbon Tax	p. 25
Economic Efficiency	p. 27
Excessive Formation of Capital	p. 41
Non-Interference with Other Regulatory Instruments or Jurisdictions	p. 46
Government Is Better at Reducing "Bads" Than Increasing "Goods"	p. 53
Incentives for Innovation-Price Effects	p. 65
Incentives for Innovation-Price Breadth	p. 77
Administrability	p. 84
International Coordination	p. 90
Revenue Raising	p. 101
Economic Efficiency Revisited: Prices versus Quantities under Uncertainty	p. 104
Conclusion	p. 115
Arguments against a Carbon Tax	p. 117
Political Economy Considerations	p. 118
Regressiveness	p. 124
Ineffectiveness	p. 138
Crowding Out	p. 143
Conclusion	p. 145
Carbon Tax Psychology	p. 147
The "Do No Harm" Effect	p. 152
The Identifiability Effect	p. 163
The Endowment Effect	p. 170
Conclusion	p. 179
Changing Political Fortunes?	p. 181
Conclusion	p. 191
Endnotes	p. 195
Index	p. 223
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