Says the Economist.
THIS is an unusually busy moment in the unhappy history of efforts to curb climate change. In two weeks at the end of June the world’s three biggest polluters unveiled carbon-reducing measures. In China and America these are more ambitious than previous policies. But they fall far short of what is needed to rein in the relentless rise in global carbon emissions… Many of the American and Chinese moves are of the command-and-control variety… In China there is a public-health justification for this sort of approach. Beijing suffered an “airpocalypse” in January, with smog 40 times above safe levels: too high at any price. America has no such justification. Mr Obama is using measures associated with Soviet central planning out of desperation: he cannot get climate laws through Congress, so executive orders are his only weapons… The trouble is, such measures are not very accurate. Bans or quantitative limits restrict emissions without considering the policy’s full costs… you want the biggest bang for your buck. The way to get that is to use market mechanisms to discover, say, the most efficient way of cutting carbon. America does not have such a mechanism at the federal level and is struggling to set one up. Europe can claim to be ahead here… But the scheme is complex and has been undermined by vast exemptions—flaws which apply to China’s new scheme, too… Winston Churchill famously said America would always do the right thing after exhausting the alternatives. The right thing in climate policy for all the big countries is a carbon tax, which is simpler and less vulnerable to fluctuations in emissions than cap-and-trade schemes.
The right response to Obama’s climate push – when P3 and the R Street Institute agree, you know something must be true.