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Robert Pindyck on Averting and Adapting to Climate Change

EconTalk

The Carbon Tax Is a Decentralized Solution That Encourages Decentralized Action

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The carbon tax doesn't try to figure out who should have the smaller car. Just lets everybody and figure out for themselves. And it works. It's a decentralized, e centralized solution that that encourages decentralized action. But if you had no other options, for surethat there's an efficient argument there. We should let people impose those tho social costs. Those cheaper alternatives could include buying an air conditionr just take a trivial example of climate change.

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