tag:blogger.com,1999:blog-5256136730392159236.post2514292513553321926..comments2008-07-21T12:24:27.481-04:00R. Randolph Richardsonhttp://www.blogger.com/profile/15347412633097611934noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5256136730392159236.post-72462646742415249292008-07-21T12:24:00.000-04:002008-07-21T12:24:00.000-04:00Anon: What economists? If you know of any economist that has compared carbon tax hikes to green energy tax cuts, please let me know. I doubt there is a consensus on the question.<BR/><BR/>I doubt a mere tax nudge is sufficient. If we want to reach the point where clean, renewable energy accounts for 50% to 100% of the US and global market in 10 - 20 years, we need to raise global green energy investment by about 500%, from the present $150 billion annually, to $750 billion. The only way to do that is with a massive reallocation of private investment, which will need to be driven by some major incentives such as proposed here. If the US makes green energy 100% tax exempt, I have no doubt that not only will we reach those investment goals in a few short years, but that most of global green energy investments will funnel through the US, making us the leader in a new era of prosperity driven by clean technology. If we do less than that, the leadership will be taken by others, the transition will take many more decades, and global warming will proceed apace.<BR/><BR/>Remember, the incentives must be of sufficient magnitude to persuade the carbon industry to diversify, happily and without backlash, to carbon-free sources.R. R. Richardsonhttp://www.blogger.com/profile/15347412633097611934noreply@blogger.comtag:blogger.com,1999:blog-5256136730392159236.post-7013487932201978442008-07-20T15:06:00.000-04:002008-07-20T15:06:00.000-04:00The great advantage of this over carbon tax proposals is that while economists say that carbon taxes will get us to the goal more quickly, they ignore the political difficulty involved -- a good example of the need for cross-disciplinary thinking in solving real-world problems. I agree that government purchasing can prime the green energy pump and create economies of scale; but I also think that positive incentives are necessary. I'm not sure a complete tax holiday is necessary when a tax "nudge" would be sufficient, however.Anonymousnoreply@blogger.com