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The Defection of Some of Their Friends

 Addition by Subtraction in Climate Policy

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Posted in Climate, Contemporary economics Tagged with: , , , , , , , ,

An op-ed in The Wall Street Journal last week,  Economists’ Statement on Carbon Dividends, appeared under a headline reflecting the latest conventional wisdom on how to frame the issue of coping with atmospheric pollution (don’t call it a “carbon tax”).  The bipartisan endorsement called for a revenue-neutral tax on carbon emissions, its proceeds to be returned to citizens in equal quarterly rebates, ensuring a progressive structure, administered by the Social Security Administration as an entitlement. The proposal was signed by twenty-seven laureates, including Robert Solow, Robert Lucas, Amartya Sen and Thomas Sargent; all four living chairs of the Federal Reserve Board