Monday, June 1, 2009

6-1-09: Cap and Trade Articles

I found two good articles today (thanks go to Marginal Revolution) about "cap and trade" legislation:

"Cap-and-Trade: All Cost, No Benefit" by Martin Feldstein

"The Costs of Carbon Legislation" by Robert P. Murphy


I think Feldstein's article is dead on from an economic standpoint. It should be, though; he's an economics professor at Harvard. It's nothing brand new, but it's a good, concise take on the issue. The basic point is: unless China and India are on board with global carbon limits, there is no point in the United States trying on its own. Good economic reasoning.

Murphy goes a step forward, and questions the logic of heralded economist and Nobel laureate Paul Krugman. He also brings some of the science in, but sticks almost entirely to the economics. He's quite harsh, but it's an interesting read. The homage to Cowen, owner of Marginal Revolution, is quite fitting (and a possible reason for the link?).

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