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San Francisco — As Congress considers clean-energy and climate legislation, most of the fuss has been about whether (and how) to use price signals to encourage clean energy and reduce our dependence on dirty fossil fuels. Should we have a cap-and-auction system (as President Obama prefers), a carbon tax (as many economists have argued), or cap and trade (as the House recently voted)? Or, should we just pretend that energy markets work just fine without price signals, as the Republican leadership and the Chamber of Commerce seem to prefer? Markets where you don’t have to pay for what you use (in this case, the planet’s limited carbon sinks) used to be associated with communism. Now they’re the heart of a weird cult that calls itself conservatism.
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Tags: carbon reductions, carbon sink, Carbon Tax