David

Sticky Note

e.g., How cap fails vs a carbon tax. Trade may allow number of firms to shrink BUT that would only happen if cap is TIGHT (i.e., CDM creates holes).Tax is easier b/c don't need to worry about q at each firm...

David

Sticky Note

allocation of quota under C&T

David

Sticky Note

can use tax n rebate to buy off industry

David

Sticky Note

Interesting discussion regulation v. taxes that are counted in restrictions (inefficient) v cash (profit loss) terms, respectively. Regulators agree and we get taxes ON TOP of regs (instead of pigouvian fees to handle both). Interesting failure of pvt over social value. Would it be better if majority could vote to tax special interests? Only if it could overcome lobbying. Possible when pols are more socially minded (Scandin) but not where they are selfish (USA).

David

Sticky Note

good suggestion. also link to Calc of Consent review.