A carbon tax is the answer to our energy woes, argues an economist
Some recent news reports may have led you to believe that there is no “price elasticity” around gasoline — that no matter how much gas prices rise, people just keep on drivin’. But it’s not so: High prices are dampening demand. Why does it matter? Because price elasticity is the secret behind the effectiveness of a carbon tax, the one market-neutral, fast-acting strategy that could get us to clean energy as fast as we need to go. Economist Charles Komanoff preaches the carbon-tax gospel.