Polluters' Profits and Political Response: Direct Controls versus Taxes

e.g., How cap fails vs a carbon tax. Trade may allow number of firms to shrink BUT that would only happen if cap is TIGHT (i.e., CDM creates holes).Tax is easier b/c don't need to worry about q at each firm...

allocation of quota under C&T

can use tax n rebate to buy off industry

Interesting discussion regulation v. taxes that are counted in restrictions (inefficient) v cash (profit loss) terms, respectively. Regulators agree and we get taxes ON TOP of regs (instead of pigouvian fees to handle both). Interesting failure of pvt over social value. Would it be better if majority could vote to tax special interests? Only if it could overcome lobbying. Possible when pols are more socially minded (Scandin) but not where they are selfish (USA).

good suggestion. also link to Calc of Consent review.