Re: Carbon Tax or Cap and Trade
Tax - administrative efficiency.
EDIT: plus it's more economically accurate. Say we cap CO2 emissions at 10 million tons/year. 10 million tons/year will be produced, even if the least-valuable CO2 use is less (or more) valuable than the marginal harm of that use. If it's a properly-set tax, only those CO2-producing activities that do more good than harm will be done.
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