Cap and trade beats the taxing tradition of Washington's "make it so" command-and-control. It strips power from bureaucrats, because all of us tend to be smarter than any of us. It sets the right aggregate goals and incentives, makes a market in outcomes, regulates carefully, monitors diligently, and gets out of the way. And it's simpler than a carbon tax because it enlists private sector creativity in finding efficiencies rather than funding lawyers to make flamboyant end runs around the tax code.
Wednesday, April 15, 2009
Less Taxing Environmental Policies
Mark Lange makes the free market case for cap and trade as a means of reducing overall carbon emissions: