Tax x Low-Carbon Energy (Metcalf)
"Tax policies for low-carbon energy" by Gilbert E. Metcalf on VoxEU. Economists often advocate taxes or cap-and-trade schemes to fight pollution, but US policy primarily subsidises clean energy alternatives. This column critiques such subsidies on four counts: they lower the cost of energy, pick favourite technologies, are often “inframarginal”, and interact in unexpected ways with other policies. http://migre.me/12PUU
