The scientific consensus is that man-made climate change is real, it's happening now. (Tea Party friends: don't send me an article about some scientist who stormed out of the IPCC in protest; that doesn't negate the IPCC's findings.) And the consensus of economists is that a carbon tax is the easiest and cheapest way to rectify climate change.
Why? Because of the free market, and all that. As long as there is no market for CO2, then the market can't react to it. Taxing CO2 emissions suddenly puts an economic cost on it, and then businesses can put their creative and technical genius to work at reducing their emissions, i.e. their production costs.
It's pretty simple.
By Tim Worstall
April 9, 2014 | Pando Daily