The White House Climate Assessment released in May brought new scientific evidence that climate change is, indeed, a real and present problem. However, there are no good economic arguments against cap and trade being the most efficient and effective policies to reduce greenhouse gas emissions. And, there are no good environmental arguments against them either.
Yet Congress continues to rely on expensive policies that both subsidize low carbon fuels— namely ethanol, and make little dent in the greenhouse gas emissions that contribute to climate change. Why do lawmakers persist in passing these laws? The answer is simple: It’s not politically advantageous for them to do anything else.
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Read the full article in MIT Sloan Alumni Magazine