Thanks for explaining the economics to the other user >IMO something like Cap and Trade makes more sense than tax for most forms of pollution Economists argue

Thanks for explaining the economics to the other user >IMO something like Cap and Trade makes more sense than tax for most forms of pollution Economists argue about this at length. Among those who write a lot to the public, you'll find figures like Mankiw among the most vocal supporters of a tax, and DeLong as one of the biggest supporters of cap and trade. Krugman, from what I have seen, seems to just want either one of them. IMO the problem with Cap and Trade is that it needs to be implemented perfectly. So far it has had problematic corruption. For example, in some cases the greatest offenders (coal generators) have been handed allowances... For free... Which they can then sell on the market at their fair market value. So if anything, it has been a reward for being the first to harm others. Not only that, then you have Wall St entering the picture, and in 2008 they proved their marketplaces dont always work so well. Bureaucrats and politicians, attorneys and accountants, endless committees, and endless meetings... It's going to be another War on Poverty all over again, where trillions are spent and the problem is not only never solved, but there has arguably never been evidence the problem has even been reduced. Finally, how would cap and trade reward and incentivize micro and household economics? Are we going by an honor system on our tax returns to tally up our carbon allowances and deduct how many car pools, telecommutes, bike rides, stairs, cold showers, etc? This is all lunacy. Why try to do this in a heavy-handed way when this is the type of thing which markets are actually brilliant at solving. Probably because all those industry experts dont want to be obsoleted overnight.