GVPT 273 Chapter Notes - Chapter 12: The Baltimore Sun, Carbon Footprint, Carbon Price
18 Apr 2018
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Beneath that cap, companies would have to buy permits for the emissions their fuels produce. The buying and selling of permits would set a market price for carbon dioxide: complications: mr. van hollen would slap a border charge on goods that come from countries that lack comparable anti-emissions policies. That will be hard to pull off efficiently. Officials will have to calculate the carbon footprint of various goods from various points of origin, and other countries will accuse the united states of protectionism. Yet any carbon pricing plan will have to include some trade adjustment. Lawmakers will be tempted to give away pollution permits to interests they favor, shattering the equity and efficiency of the policy. This is among the reasons we have preferred enacting a carbon tax. It would be less vulnerable to political gaming, and its revenue also could be rebated back to consumers or recycled back through cuts in other taxes.
