Holman Jenkins, Jr. makes a good case for a carbon tax because of its economic efficiency (“Is a carbon tax the only way to stop going green?” Business World, July 9). He suggests that a compromise deal “that has been on the table for decades” – trading tax cuts for growth “would be a tonic for the economy”.
Such a deal could be the elixir, but environmentalists want a carbon tax not as a replacement for, but in addition to, command-and-control regulations. If a Pareto-optimal carbon tax could be determined, then vehicle fuel economy standards should be repealed along with any remaining carbon regulatory authority that remains with the EPA after the recent Supreme Court decision passes. Unfortunately, the inertia of the authorities will not allow it.
