San Francisco's New 4 Cents a Ton Carbon Dioxide Tax: Could Behavioral Responses Be Enormous?
Ed Glaeser and I have a new paper where we assume that the social marginal cost of an extra ton of carbon dioxide emissions equals $43. With this number in mind, it is funny that the progressive green city of San Francisco is applauding itself for implementing a $.04 tax per ton of carbon dioxide. Now, I know that in this world of behavioral economics 4 cents is "far" from zero but $43 is far from $.04!
Dan Kamen celebrates this first step. Details on the San Fran Carbon Tax
Under what scenarios is he right? One optimistic story is that this is like entering a swimming pool. You first put your toes in and when you get used to the temperature, you jump into the water.
It would interest me whether Mayor Gavin N. has a plan to ratchet up this tax to a higher $ amount once people get used to the idea of paying for this "free good".
Dan Kamen celebrates this first step. Details on the San Fran Carbon Tax
Under what scenarios is he right? One optimistic story is that this is like entering a swimming pool. You first put your toes in and when you get used to the temperature, you jump into the water.
It would interest me whether Mayor Gavin N. has a plan to ratchet up this tax to a higher $ amount once people get used to the idea of paying for this "free good".
posted by Matthew Kahn at 8:08 AM
1 Comments:
I agree with your "toes" analogy. The idea is to get the system in place and then raise prices...(clever, I think)
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