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Can someone explain to me like I am 10 why a carbon credit system is preferred over a straight carbon tax? Also, isn't most carbon produced by industry caused b
by SubiculumCode 7y ago
Can someone explain to me like I am 10 why a carbon credit system is preferred over a straight carbon tax? Also, isn't most carbon produced by industry caused by burning fuel? Seems easy to tax fuel.
- brendanmc6 7y agoIt's not preferred. All the leading economic models and experts are in agreement that a flat carbon tax is the way to go (on paper). The problem is political feasibility and public acceptance. It is a lot easier to pass carbon trading schemes, emissions targets and caps, and renewable energy subsidies-- even though all of these end up costing consumers more than a simple tax would. I recommend looking into the work of William Nordhaus for more on this topic.
- strommen 7y agoCarbon credits vs. carbon tax isn't an either/or. Carbon tax discourages emitting carbon into into the atmosphere. Carbon credit encourages sucking carbon out of the atmosphere. Both are needed. One advantage to carbon credits is that anybody can pay them, whereas only the government can enforce a carbon tax. And when it comes to the Amazon, this means the Brazilian government...whose leader is a climate denier that wants to bulldoze the Amazon for agriculture.
- SubiculumCode 7y agoAh I see..I had thought that producing fewer emissions than target/allowance would be given a credit they can sell to others. That is different than Credits for Carbon capture. Thanks for clarifying.