3 ms·
> IMO the industry should be forced to pay for a ~1T insurance policy to avoid bad incentives rather than the government simply taking on the associated risks.
by InitialLastName 4y ago
> IMO the industry should be forced to pay for a ~1T insurance policy to avoid bad incentives rather than the government simply taking on the associated risks.
Good idea; let's start by applying that incentive to the externalities generated by the fossil fuel industry first though, so that the playing field is fair.
Ed: spelling
- Retric 4y agoSure, I agree with pricing externalities for both. Unfortunately, fossil fuel externalities cross national boarders which creates perverse incentives. Do only price in the costs to your own country or accept an economic disadvantage? Essentially countries need to start doing pollution tariffs not just taxing externalities. Economically the correct choices are obvious, but politics is rarely so simple.