Mankiw on Cap-and-Trade

November 1st, 2007 by Peter Suderman

Greg Mankiw gives us the fundamental theorem of carbon taxation:

Cap-and-trade = Carbon tax + Corporate welfare.

Got that? It’s a tax increase, with some bad subsidies attached. Awesome!

And this is the preferred policy for combating global warming, mainly because no one wants to be seen as a tax-raiser (as with a straight carbon tax).  All together now, let’s get a chorus going as we sing, “Market based! Market baaaaaased…

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2 Responses to “Mankiw on Cap-and-Trade”

  1. Trey Says:

    And Mike Huckabee supports “cap and trade”. Huckabee as a tax cutter? What spin!

    Fred Thompson has the consistant taxing cutting record! And he opposes “cap and trade.”

  2. Brendan Steinhauser Says:

    The Congressional Budget Office did a great study that really points out the economic harms caused by “cap and trade.”

    All economic pain for no environmental gain!

    http://www.newsbusters.org/node/12327

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