February 15, 2007

Report: Carbon Tax a Better Way to Fight Global Warming
A former Clinton administration commerce department official today released a report arguing that a global tax on companies' greenhouse house gas emissions is a more efficient way to combat global warming than the carbon trading markets endorsed by a host of government officials and corporations like Alcoa (AA), BP, (BP), DuPont (DD), Duke Energy (DUK) and General Electric (GE). "A carbon tax would both directly reduce greenhouse gas emissions and provide powerful incentives for technological progress," wrote Robert J. Shapiro, a Washington D.C. consultant, veteran think tanker and former under secretary of commerce for economic affairs. "Carbon taxes also should provide greater incentives for companies to develop new, environmentally-friendly technologies or abatement strategies than a cap-and-trade program." Shapiro's study was released by the American Consumer Institute, a free-market oriented Washington group.