Strip Poker 8

It's a Wonderful Fluff

Strip Poker 7

"Tax the stupid people!"

My partner and I got into a heated discussion on what the best way to reduce CO2 emissions. I favor two things one, a cap and trade market for CO2 and changes in tax policy. If you added a tax to CO2 (and other things that are bad for the environment) and reduced income taxes (or completely eliminated them) you could offset the higher prices of products and energy in the short term and give people an incentive to pick environmentally sound products because those products would be cheaper then their dirtier competitors. The cost of dirty energy, shipping products from far away would also go up. But companies that produce sustainable products and energy and local companies would have lower taxes (and lower cost of doing business) then companies that do not, giving them an advantage, and allowing them to undercut dirty company's products prices and ultimately allowing them to win in the marketplace.

The point is that we should use tax and regulatory policy to reward corporate behavior that is positive and penalize corporate behavior that works contrary to the public good. The same goes for cap and trade. It gives incentives to companies doing the right thing (reducing their emissions below the cap) and give disincentives to poluting (having to buy credits or pay a fine).

If you want to learn more (or see data to back up these ideas) check out the Earth Policy Institute and the book Plan B 3.0.