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Reducing coal usage is a goal of environmentalists. Government inaction, creating uncertainty, is achieving that goal. Why do we need to tax the industry and ra
by ams6110 9y ago
Reducing coal usage is a goal of environmentalists. Government inaction, creating uncertainty, is achieving that goal. Why do we need to tax the industry and raise rates on consumers when coal usage is falling and renewables are on the rise without it?
- epistasis 9y agoBecause coal isn't the only problem, carbon in general is one of coal's problems. Coal also causes tons of premature deaths from other non-CO2 emissions as well, but the long term problem is the CO2. An economic system is more efficient and overall wealth increases if externalities are priced closer to their costs.
- wisty 9y agoBecause a tax is more efficient than wild, emotional guess-work.
- hwillis 9y ago>Why do we need to tax the industry and raise rates on consumers when coal usage is falling and renewables are on the rise without it? The cost to the consumer is higher with uncertainty. Uncertainty means lower overall investment and therefore a higher cost of electricity. Investors face risk on both sides: if they invest in renewables, they might lose money to coal. If they invest in coal, they might lose money to renewables. That causes them to invest in other industries and opportunities. A tax gives a quantifiable return and makes the industry as a whole a better investment. Pigovian tax is best tax
- shmerl 9y agoIt should be everone's goal. Pollution from coal plans is simply deadly.