The Case for the Carbon Tax

A former senior economic advisor to the Clinton Administration argues that a carbon tax, not a 'cap-and-trade' system, is the best way to limit carbon emissions. The two most prominent strategies for reducing greenhouse gases are a global system of national caps on the emissions and tradable permits, modelled on the Kyoto Protocol, and global, harmonised, net carbon-based taxes. Adapted from Robert Shapiro's paper for CEDA's research collection Climate Change: Getting it right.