Friday, June 15, 2007

Brilliant Carbon Tax Idea; Part II

The ingenious carbon tax idea below can actually be further improved by adding a wrinkle allowing a futures market in the temperature indicator, and tying the tax to the futures price. This futures price would in effect allow companies to bet on the forward development of AGW and hence efficiently plan energy provision.

Too simple, too brilliant to be true?

Author of this paper, Ross McKitrick, is fielding questions here.