Carbon Pricing

As does Bernie Sanders, Rinaldo Del Gallo believes in putting a price on carbon.

What is a carbon pricing? Wikipedia has a reasonable definition:

Carbon pricing — the method favored by many economists for reducing global-warming emissions — charges those who emit carbon dioxide (CO2) for their emissions. That charge, called a carbon price, is the amount that must be paid for the right to emit one tonne of CO2 into the atmosphere. Carbon pricing usually takes the form either of a carbon tax or a requirement to purchase permits to emit, generally known as cap-and-trade, but also called “allowances”.

Here is what Bernie Sanders says:
Bernie’s comprehensive plan to combat climate change and make sure our planet is habitable and safe for our kids and grandkids will:
Cut U.S. carbon pollution by 40 percent by 2030 and by over 80 percent by 2050 by putting a tax on carbon pollution, repealing fossil fuel subsidies and making massive investments in energy efficiency and clean, sustainable energy such as wind and solar power.

Create a Clean-Energy Workforce of 10 million good-paying jobs by creating a 100% clean energy system. Transitioning toward a completely nuclear-free clean energy system for electricity, heating, and transportation is not only possible and affordable it will create millions of good jobs, clean up our air and water, and decrease our dependence on foreign oil.

Return billions of dollars to consumers impacted by the transformation of our energy system and protect the most vulnerable communities in the country suffering the ravages of climate change. Bernie will tax polluters causing the climate crisis, and return billions of dollars to working families to ensure the fossil fuel companies don’t subject us to unfair rate hikes. Bernie knows that climate change will not affect everyone equally – disenfranchised minority communities and the working poor will be hardest hit. The carbon tax will also protect those most impacted by the transformation of our energy system and protect the most vulnerable communities in the country suffering the ravages of climate change.

We can take this revolution local! Why not a Massachusetts state tax on carbon pollution? Why not use state government to create a clean-energy workforce? Why shouldn’t the Commonwealth of Massachusetts tax polluters?

The reality is that polluters often do not pay for their pollution, thus (as economist would say) “externalizing” their pollution cost onto us and the environment. By imposing a tax on carbon, clean energies such as wind and solar would be at an advantage, since they have no carbon cost (or other pollution) to externalize. Markets only work if people absorb the true cost, and when the price of pollution is reflected in the cost of the good or service being provided.

Carbon Washington, based in the state of Washington, has a great idea. By taxing carbon, the funds can be used to offset the sales tax, a highly regressive tax.