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A GHG tax is one that prices in externalities and will hurt trade over long distances in more or less equal measure, I’m not the biggest fan of it because I fea
by SllX 7y ago
A GHG tax is one that prices in externalities and will hurt trade over long distances in more or less equal measure, I’m not the biggest fan of it because I fear it would be used for policies other than mitigating the effects of a changing climate, but it would at least raise the price of everything from leaves to meat to automobiles to fish to computers and candles and essentially anything that is industrially produced or raised or caught. The net effect is to depress the purchasing power of everyone, and possibly, maybe even likely making the repair of a widget more price competitive with the replacement of a widget. I wouldn’t be able to buy as much meat with my current grocery budget, but I also wouldn’t be able to buy as much spinach or apples or garam masala or coffee without increasing my grocery budget. This would be true of anyone and everyone within a jurisdiction that actually implemented it properly.
In pricing out the tax, you would need to compute the global warming potential of the emissions for every piece in the supply chain, as well as their half life to measure their short term and long term impact and finally put a price on all of that. You could limit it to certain classes of emissions to keep it simpler, but you would want to cover all the known major transportation, industrial and agriculture emissions including carbon dioxide, carbon monoxide, nitrous oxide, methane, and so on.