Vital Signs: A simple way to cut carbon emissions—don’t let polluters hide
A price on carbon—in the form of a carbon tax or emissions trading scheme—is a way to use the power of the market’s price mechanism to balance the good that comes from emitting carbon (economic development) with the bad (climate change). It’s hard to see how the world solves what amounts to—as economists put it—a “coordination problem” without global agreements.
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