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Carbon Taxes to Replace Carbon Trading?

7:24 AM MST | December 8, 2009 | James Emanuel, commercial director/CantorCO2e

At the UN Climate Change Summit (COP 15) in Copenhagen, a leading climate scientist from NASA, Dr James Hansen, has claimed that “cap-and-trade schemes are a terrible idea”. He went on to say  that “…a carbon tax, which is simple and honest, is a much easier task...all you have to do is get the major players to agree to put a carbon price on.”   Therein lies the rub. Hansen is a scientist and not an economist.   Three good economic reasons exist for not favouring a carbon tax over a cap-and-trade solution:   A...

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