Another highly amusing post over at Mr E's place has alerted me to this article on Carbon Taxes; something that I consider to be a way for a clique to make a stack of cash.
That aside, this statement in the article confused me somewhat:
I am an economist, and so I supported a carbon tax. A carbon tax means that we can leave it to the market to find the lowest-cost way of reducing global warming, with governments setting the tax at the rate necessary to bring global warming emissions within appropriate levels as determined by natural scientists.
The concept that controlling price and supply in some way means that we're leaving it to the market it one which is hurting my booze-addled post Christmas brain. I thought that if we wished to leave something to the market then we did just that: left it to the market. Laissez faire; let's not have any government interference and leave it all down to utils. Surely by imposing a tax we are shifting everyone's indifference curves around?
Is this wrong? Is this the view of economics only seen by libertarians whilst the left have hijacked economic theory to suit their own ends? I wouldn't be surprised if they had, of course, only disappointed and left hoping that this isn't taught in schools.
Whilst Tim has changed his mind on carbon tax, alas it's only because he wants to see it as part of a huge scheme of measures designed to regulate us back to the stone age. The only people I can see this climate change fanaticism benefiting are the well connected in developing countries and people who benefit from carbon trading. Like the chairman of the IPCC.
Or maybe it's just the port talking.