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A Tax that could Save the World?  Available on Wednesday, November 25, 2020 2:45

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A Tax that could Save the World? 
Available on Wednesday, November 25, 2020 2:45 PM EST
Dear ECON 203 Students:
So now that we’re posed (next week) to review the economics of externalities, it’s appropriate to ask you to read about how to save the world with a simple carbon tax.  Such a tax on carbon fuels is known as a “Pigovian Tax,” as you’ll learn in our Week 7 class.  It is, however, but one of a number of policy proposals economists recommend to address the question of climate change.
Your first task is to review the University of Chicago Booth School of Business piece below.
Now with the pandemic and concomitant collapse of oil prices, some argue that political constraints have loosened and that something can/should now be done. For a sampler, take a look at the following article.
So what do you recommend as a best policy?  A Pigovian carbon-emissions tax?  A cap-and-trade policy framework?  Increased government regulations?  Nothing? since relative price changes in the fossil-fuel and alternative-energy markets will solve the problem, assuming one exists, eventually. 
You must choose one of these and defend it, remembering to discuss how this supposedly new political environment (if you disagree, say so explicitly in your post) might or might change things.  In your defense, make sure you identify and respond to potential snags and weaknesses, as outlined in the article.  You’re welcome, of course, to use additional resources.
As per our class norm, to be eligible to receive extra-credit points, you must make your first post by 23.59, Sunday, November 29.  And you must make two follow-up posts before the beginning of our Week 7 class.  
Best wishes for a lively discussion.  No doubt you’ve not heard the last of this!
R. Chaney

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