From Irwin Stetlzer:
Cap-and-trade, properly done, and carbon taxes, properly levied, should be explored as ways of getting the costs of pollution reflected in the prices consumers pay. That would provide an incentive to entrepreneurs to come up with efficient alternatives to fossil fuel consumption and relieve governments of attempting to pick winners.
Since a carbon tax specifically means that we are taxing only carbon-producing technologies, and not other technologies, doesn’t a carbon tax effectively pick winners and losers?
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