Monday, 3 November 2014

What would a government do if they believed in climate change

A government that believed in climate change would do a number of things but the very first thing they would do would be to put a price on carbon either directly through a ETS or indirectly through a carbon tax. This would correct the externality and enable the market to do its work.

A government that did not believe in climate change but said it did because of polling would institute a policy of direct action where the government  determined what was needed, Industry gets a handout for polluting the environment and any action was limited by the amount of government funds.

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