The world urgently needs to expand its use of carbon prices

IF ECONOMISTS ruled the world, carbon prices would drive most of the action on climate change. Polluters would pay for the negative externality their emissions inflict on the planet. There might be differences on the method of payment—some might lean more towards taxes, others towards the permits used in “cap and trade” schemes. But the idea that some sort of price would help people find an efficient means of reducing emissions is a given.

In the absence of a global econocracy, the policy has fared less well. Take the experience of Yoram Bauman. He is unusual, among those with doctorates in economics, in earning his living as a stand-up comedian. But he is in line with the professional mainstream on carbon prices. In 2016 he led an attempt to get the state of Washington to raise a new tax on emissions of carbon dioxide and use the revenues mostly to cut sales taxes. The ballot measure gained some support from politicians of both parties, but it was opposed by environmental groups on the left who wanted its revenues spent on clean energy investments and redistribution, not tax cuts. It was defeated 41% to 59%.

In 2018 a second proposal for a carbon tax was put to the ballot. This one followed what Mr Bauman calls a “unite the left” approach; any cash raised was to go on green investments and communities affected by...

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