Why carbon tax will work even if climate change theory is wrong
By Don Cayo 24 Nov 2010 Cayo
Just because nobody knows the future is no excuse to do nothing in the face of worrisome possibilities, says Dan Gardner, the author of a solidly researched new book that makes it clear just how shaky ? if not dead wrong ? expert predictions usually are.
Good policy, Gardner writes in Future Babble: Why Expert Predictions Fail ? and Why We Believe Them Anyway, stands up as worthwhile even if the forecast that prompted it turns out to be wrong.
He cites as an example ?a stiff carbon tax with the revenues returned to the economy in the form of cuts to other taxes? ? which is what we have in B.C., except our carbon tax isn?t so stiff.
?Would it deliver even if climate change turns out to be bunk?? he asks.
?Absolutely. Carbon taxes raise the effective cost of fossil fuels, making alternative energy more competitive and spurring research and development. And reducing the use of fossil fuels while increasing the diversity of our energy sources would be wonderful for a whole host of reasons aside from climate change. It would reduce local air pollution, reduce the risk of catastrophic oil spills, buffer economies against the massive shocks inflicted by oil price spikes, and lessen the world?s vulnerability to instability in the Middle East and elsewhere. It would also reduce the torrent of cash flowing from the developed world to the thuggish governments that control most oil-producing nations, including Saudi Arabia, Iran and Russia. And of course there?s peak oil. If the peaksters turn out to be right, finally, how much of our economy is fuelled by oil will determine how badly we will suffer ? so carbon taxes would steadily reduce that threat, too.?
http://communities.canada.com/vancouversun/blogs/cayo/archive/2010/11/24/why-carbon-tax-will-work-even-if-climate-change-theory-is-wrong.aspx