Will the Electricity Industry Still Need a Carbon Tax?

摘要

The debate on carbon policy seems to have gone into hibernation. It is being replaced with a menu of other state and federal policy initiatives that aim to achieve the same objectives.Economic Theory The economic argument proffered by proponents for carbon policy begins with two assumptions: 1) Externalities associated with carbon emissions generated from the production process are not incorporated into prices; and 2) failure to incorporate the cost of these externalities results in an inefficient allocation of resources.