[EMAIL PROTECTED] wrote:
> James,
>
> maybe I wasn't terribly clear, or you didn't carefully read my posting.
Or perhaps we are talking rather at cross purposes.
I don't accept that a "carbon tax" would have to be a uniform rate
across all forms of CO2 emissions, even if this does seem a logical
starting point. Taxes always have exemptions and other details.
Obviously, even matching the existing taxes on petrol would cause a
major upheaval if aplied across the board. It's true that some (probably
most, perhaps even all) of the research seems to basically consider a
flat rate, but I interpret this to be a rough estimate, a sort of
starting bid rather than a definitive proposal. (Or more probably, it is
presented as an additional flat-rate tax on top of the taxes already
applied - I don't think the authors are advocating large tax cuts on
petrol.)
> It is well known what a revenue-neutral carbon tax that is the same for
> all sectors would do at $100 per tonne of carbon
I recall a figure of about $25-30 being suggested as reasonable (but if
that is per tonne of carbon as CO2 then it matches your figure). Even
that would not have to be introduced in one go - a clearly-signposted
ramping up of the tax from a small initial level over years (decades,
even) would give a long time to adapt, and plenty of incentive to do so.
Sequestration would probably be plausible at that level too.
James
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