Let the market work!

An interesting discussion on the role and effectiveness of the free market in addressing climate change, particularly in light of the dire reports received at the United Nations ...

It implies that there’s some genuine ideological dilemma that makes it impossible for a committed free marketer to propose constructive policies to avert catastrophic climate change. But how about reductions in subsidies for fossil fuel production and consumption? The free market credentials seem impeccable. Or how about a “green tax shift” in which carbon is taxe(d) or carbon emission permits are auctioned and the revenue is used to finance deficit-neutral reductions in other taxes? Again, it surely can’t be that free market principles commit people to the precise series of revenue streams currently used in the United States.

Eliminating any or all of the existing tax exemptions connected to fossil fuels would go a long way in forcing the entire economy to readjust and innovate, and it would be the sole result of natural market forces. Likewise, a stiff carbon tax would dramatically deter folks from emitting high levels of carbon and compel to find ways to maintain their production without ample emissions (something a cap-and-trade system can't entirely produce).