Jeffrey Sachs on Carbon Trading
Monday, May 05, 2008
by Geoff Riley
Jeffrey Sachs features on “You ask the Questions” in today’s Independent. There are loads of interesting questions and answers - Sachs remains positive about China’s growth potential although he expects it to decelerate to around seven per cent in the years ahead. Here he is on a question about carbon trading .... good evaluation here for students preparing for a question on carbon trading versus carbon taxes versus other policy measures:
“There is a good case for putting a price on carbon emissions but it is more straightforward to do it as a tax rather than a system of tradable permits. It would be easier to tax carbon at source – coal, oil, and gas companies. Tradable permits or carbon taxes will not help develop low-emission technologies. We need to combine carbon pricing with initiatives to promote sustainable energy and farming technologies.”
Catch the remainder of his article here
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Comments
Hmm I recall John Micklethwait backing carbon taxes over tradable permits too, but I’m still unconvinced - the only argument he offers there is that it’s “easier”. Maybe so, but I’d have thought that a market allocation of permits would be more efficient, even at the cost of greater administration. Note that he says NEITHER options will help develop low-emission technologies.
I mostly agree with everything else he says though, even if he is at times vague and rather textbook-ish. He certainly knows his stuff on development economics though, it being his specialist field and all. If he ever does run for office, he’s got my vote! :D
Posted by on 05/05 at 04:23 AM
