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And possibly an illustration for the public of how the system was intended to work. I'm not sure everyone quite understands that one big difference between a c
by bunderbunder 7y ago
And possibly an illustration for the public of how the system was intended to work.
I'm not sure everyone quite understands that one big difference between a cap-and-trade type system and a simple excise tax is that an excise tax puts constant downward pressure on pollution, while the cap-and-trade type system only encourages the industry to reduce their externalities to whatever level the government picked as a target.
- gmac 7y agoBut if the government picked a tax rate, they'd likely do it with a forecast in mind of what externality would remain, so it only makes a difference in as far as there's uncertainty, and then only until the next round of permit quantities is picked.