Carbon problems

For the deeper diggers of PF October, carbon markets and carbon taxes.

Will government solutions to global warming be worse than global warming itself? Remember that man-made global warming is a negative externality that occurs when burning fossil fuels release carbon dioxide into the atmosphere. Economists define negative externality as a spillover from an economic transaction that harms parties not directly involved in the transaction. In this case, the carbon dioxide released into the atmosphere is thought to be boosting temperatures, raising sea levels, and having other effects on the climate that people must involuntarily pay to adapt to (more air conditioning, switching crops, and so forth). Thus, goes the argument, the price of fossil fuels does not reflect the full cost of consuming them. More...