As I’ve argued before, carbon taxes are better than carbon trading because they are simpler, there is less bureaucracy, less room for political interference, and less room for a parasitic class to form. In witness of which, David Hone’s article about the International Emissions Trading Association (IETA)’s “vision”.
Well, that was a bit short, wasn’t it (I couldn’t be bothered to do any more). Now I remember a rather silly recent article at RC, Recycling Carbon? by Tony Patt of ETH Zürich, which says We know, from two decades of social-science research, that [carbon tax or cap-and-trade] do work to bring about marginal reductions in emissions, largely by stimulating improvements in efficiency. We also know that, at least so far, they have done virtually nothing to stimulate investment in the more sweeping changes in energy infrastructure that are needed to eliminate reliance on fossil fuels as the backbone of our system, and hence reduce emissions by 100%. Idiot.