re: #123 Nimed

But Cap and Trade pigovian in its essence. It’s not a straight carbon tax (which would have an even smaller chance of becoming legislation), but the bottom line is pretty similar to that of a standard pigovian tax — it puts a price tag on a negative externality.

Its dissimilarities are market-distorting. Allowances, unlike a tax, need to be distributed and managed by the government.

You know, because they’re so good at managing other important things, like oil rigs.

Why fool around with C/T when its best case scenario is an approximation of a pigovian tax when we can just apply a pigovian tax? I’m missing something here, probably - need your help.