Friday, April 16, 2010

Climate Mitigation - topics for Monday and Wednesday

Monday and Wednesday we'll be talking about taxes and payment/market-based approaches to pollution management and ecosystem service provision. You don't have any assigned readings for Monday so you can focus on your Policy Analysis proposal, but here are a few useful brief introductions to topics we'll discuss, and they should serve as good references later for you.

Paul Krugman has a very simple comparison of taxes vs. cap-and-trade here as a nice introduction.

Canadian economist Stephen Gordon gives you a little more detail in his comparison here.

Haab and Whitehead have a more detailed explanation from the perspective of polluting firms.

After reading these posts and our discussion in class, you should understand the basics of taxes and cap-and-trade programs and their pros and cons, from a carbon perspective. The same ideas applied to carbon can be applied to other pollutants and ecosystem services, with varied success. We'll get to more on that later.

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