Attention Economy


Friday, February 11, 2022

Politics, Economics, and Climate Action

Yes, gas prices are up. But cutting the gas tax is not the answer.
https://www.washingtonpost.com/opinions/2022/02/10/gas-prices-up-tax-holiday-not-the-answer/
Catherine Rampell notes:
Already, the price of gasoline doesn’t reflect the fuel’s full cost to society from carbon emissions and other pollution. Further subsidizing gasoline — with the biggest benefits going to people with the least fuel-efficient vehicles — isn’t helpful. In the long run, we want incentives that entice people to shift their behavior toward less greenhouse-gas-intensive technologies. Not an implicit government guarantee that gas will always stay cheap. 

What is the ‘social cost of carbon’?