William Nordhaus has been writing for four decades about climate change and the value of using prices to reduce carbon emissions. His research shows that raising prices through, say, a carbon tax, is a far more effective and efficient way to lower carbon emissions than direct government controls on the quantity of emissions through, say, regulatory limits on cars and power plants.
Addressing climate change isn’t just about moving to cleaner forms of energy anymore. It’s about literally taking out some of the heat-trapping gases already in our skies.
A group of farsighted Republicans is making the case that carbon prices are artificially low, and a big carbon tax would set them right.