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.
Economist Robert Pindyck of MIT talks about his book, Climate Future, with EconTalk host Russ Roberts. Pindyck lays out what we know and do not know about climate change. He argues that because of the nature of greenhouse gases, adaptation must be part of the policy response to climate change.