A Carbon Tax Is Not a Price
By David Henderson
But carbon already has a price, or, more exactly, multiple prices. Natural gas has a price; oil has a price; coal has a price. And their prices are related to the valuable carbon component of those fuels because it’s carbon that makes those fuels valuable. Just as there’s no such thing as a free lunch, carbon is not free.
So why does Professor Gordon claim that taxing carbon means “putting a price on carbon?”
I can only speculate because I don’t know him, but here’s what I’m willing to bet dollars to doughnuts on: he calls a tax a price in order to lull the reader into thinking that it’s not a tax. Later in the piece he admits that it’s a tax but in his first mention, which sets the stage, he doesn’t.
This is from my latest blog post at the Fraser Institute’s blog. The post is titled “A Carbon Tax Is Not a ‘Price’“. Read the whole thing, which is not long.