Response to Professor Stephen Gordon
By David Henderson
Both Foster and I noted that there is an important distinction between a tax and a price. Professor Gordon is right that a tax on carbon affects the price of carbon–neither Foster nor I had ever maintained that it didn’t.
But that doesn’t mean that a tax is the same as a price.
And if Professor Gordon was trying to persuade readers that he sees the difference, he has failed miserably. Indeed, his response suggests that he comes close to equating the two.
Read the whole thing, which isn’t long.