Science and the Carbon Market
With the change of U.S. administrations, there is renewed discussion of climate change policy. Ideas at the forefront are environmental pollutant markets and tax-based controls. The market-based approach, called cap and trade, is posed in opposition with the tax-based approaches. This polarization is not a useful or correct way to advance policy.
The advocacy of a cap and trade market follows from the success of the sulfur market, which controls acid rain. The amount of pollutant that can be tolerated is informed by scientific investigation. This leads to a “cap” on the amount. (more…)