The politics of carbon taxes versus clean energy subsidies

Economists on both the left and the right tend to favor carbon taxes as the most efficient way of addressing global warming. In contrast, politicians on both the left and the right are reluctant to embrace this approach, due to a perception that carbon taxes are highly unpopular. Instead, politicians often implement something less effective: clean energy subsidies.

But why are carbon taxes unpopular? When economists say a policy is “more efficient,” they usually mean it results in a higher level of real income for society. What if a carbon tax passes this test, and is a superior approach to policies that are already in place? Here, I’ll argue that an appropriately constructed set of carbon taxes would not have to be politically unpopular.

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Πηγή: thehill.com