Can carbon ‘cap and trade’ make a comeback?

Harvard’s Rob Stavins asks “Who Killed Cap and Trade?”. The NY Times is asking the same broad question .

The recession has not helped the push to internalize the carbon externality. Hummer drivers, meat eaters, electricity consumers, cement makers are all not eager to face higher input prices at a time when their earnings are down. Matt Kotchen and I have figured out a credible strategy for measuring this “recession chills the ardor for Carbon policy” effect and we should have a serious NBER paper ready in 2 months or so.

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Posted on April 5, 2010 · in USA

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