Making the Case for Cap-and-Trade - Business - The Atlantic

Making the Case for Cap-and-Trade - Business - The Atlantic
As the latest attempt to pass an energy bill goes up in smoke, there is one thing for certain, a lot of ignorance surrounds this issue. Click on the link above to get an understandable description of the cap and trade system. Every economist worth his salt would tell you that the answer to global warming has to be disincentives to produce the causes of global warming. A pigouvian tax, for instance, increases the private cost of the action to equate or surpass the social cost. The cost of polluting is currently not a deterrant.