More Libertarians for a Carbon Tax

The Prometheus Institute has come out in favor of a carbon tax as a way to address the problems posed by man-made global warming. The Institute proposes:

A universal, per-unit carbon tax should be calculated and levied against all consumers and producers of the most common greenhouse pollutants demonstrated to enhance the risk of deleterious climate change. The tax rate should be set at the lower of an aggregate market index for carbon trading/offsetting (currently estimated to be approx. $10-20 per ton), and and the scientific/economic cost of carbon consensus estimate. Carbon offsetting purchasing should function as a tax-deductible purchase. The tax will create market incentives to accelerate the development of carbon-neutral alternative fuels, and revenues from the tax should directly adapt and prepare for foreseeable economic and environmental damage. The tax should be levied against all feasible points of greenhouse emissions, including consumer gasoline sales, corporate pollution, private airline and jet use, power generation, and all other transactions of foreign or domestic consumers and producers.

The Prometheus Institute carbon tax proposal is part of its "Pay Your Air Share" policy initiative aimed at encouraging innovators and entrepreneurs to develop and market low carbon energy technologies.

The Prometheus Institute proposal is very similar to the one I discuss in my article "Carbon Taxes versus Carbon Markets." See also last fall's spirited Reason in DC Conference debate over global warming at reason.tv.