Sunday, February 21, 2010
A Small Price for a Large Benefit
This article analyzes global warming from an economic viewpoint where it proposes a possible $80 tax on a metric of carbon dioxide. The revenue earned from this tax could then be used to research and finance countermeasures to stabilize temperatures. Based on current climate forecasts, the median forecast suggests an increase of 9 degrees Fahrenheit which would be catastrophic. The author acknowledges the increase of prices for goods and services tied to carbon dioxide such as gasoline however he also provides suggestions for using more efficient automobiles and phasing in the added costs. This may prove to be very beneficial and represents a small cost to combating global warming.
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2 comments:
I think a tax of $80 would or implementing a cap and trade system as suggested in the article would be very beneficial even if it does hurt firms at first. Global warming is a real issue that people tend to overlook because it doesn't effect them directly. The harmful effects of global warming are happening faster and faster and the only way to slow the process down is to take action now. I think the threats of global warming are seen as "that will never happen" because we can't see it happening. Although the most harmful effects might not be seen in our lifetime, they could be seen in our grandchildren or great-grandchildren's lives so an extreme tax such as this might be what everyone needs for a wake-up call.
It truly is important to preserve what we have now. The lack of knowledge that people have of what is going on in the environment is concerning. What is even worse are those that deny our ever-changing world. Government should step in because although we do not see it as a negative externality now, it is potentially a threat. I support this idea of an $80 tax in order to encourage environmental awareness and prevention of the deterioration of the world.
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