Tag Archives: externality

Gas Taxes and Oil Subsidies: Time for Reform

Share Button

(8/10/2015) World oil prices have been highly volatile during the last decade.  Over the past year they have fallen more than 50%.

Should we root for prices to go up, down, or stay the same? 

Share Button

What Do Obamacare and the EITC Have in Common with Cap-and-Trade?

Share Button

My preceding blog post described how market-oriented mechanisms to address environmentally damaging emissions, particularly the cap-and-trade system for SO2 in the United States, have recently been overtaken by less efficient regulatory approaches such as renewables mandates.   One reason is that Republicans — who originally were supporters of cap-and-trade — turned against it, even demonized it.

One can draw an interesting analogy between the evolution of Republican political attitudes toward market mechanisms in the area of federal environmental regulation and hostility to the Affordable Care Act, also known as Obamacare.   The linchpin of the program is the attempt to make sure that all Americans have health insurance, via the individual mandate.  But Obamacare is a market mechanism, in that health insurers and health care providers remain private and compete against each other.    read more

Share Button