He said there is no need for radical change, but society should lean toward sustainable technologies and slightly against unsustainable ones.
"we should lean in the direction of supporting technologies that are sustainable and lean uh slightly against technologies that are unsustainable"
He compared carbon emissions to smoking: the evidence mounted for decades and was denied, and now 'we're smoking the planet'.
"what we're doing here with carbon emissions from from oil coal and gas is we're smoking the planet"
Says you don't need to believe in climate change: even a small probability of a severe outcome justifies a carbon tax.
"Belief in climate change isn't necessary. Even a small probability of a severe outcome justifies a carbon tax."
Prices are information for labor allocation. When prices are wrong, the wrong thing happens in the economy. CO2 capacity of oceans and atmosphere is a tragedy of the commons, unpriced, so we are incenting bad behavior — like high taxes on fruit and low taxes on cigarettes.
"when the prices are wrong then the wrong thing happens in the economy"
Best case of delay is just slowing the inevitable transition; worst case is more displacement and destruction than all the wars in history combined. About 97% of scientists believe the worst case. That is why he calls it the dumbest experiment in history ever.
"this is why I call it the dumbest experiment in history ever"
There is an untaxed negative externality — a hidden carbon subsidy. The solution is a carbon tax, and to make it neither left nor right, a revenue-neutral carbon tax: raise carbon taxes, cut other taxes, phased in so industry has time to react.
"a revenue neutral carbon tax"
The fundamental problem is the rules today incent people to create carbon, and this is madness. What you incent will happen. There needs to be a clear message from government.
"the rules today incent people to create carbon and this is madness"
He said we need a carbon tax, probably revenue neutral so it is neither a left nor right issue.
"So that means we need to have a carbon tax and to make it sort of something which is neither a left nor right issue, we should make it probably a revenue neutral carbon tax."
He called the untaxed negative externality a hidden carbon subsidy of $5.3 trillion a year, per the IMF.
"which is effectively a hidden carbon subsidy of enormous size, $5.3 trillion a year, according to the IMF."
He said the only way to do that is basically with a carbon tax.
"And the only way to do that is basically with a carbon tax."
Says a carbon tax is what is really needed to move the needle.
"Rex Tillerson supports a carbon tax. This is what is really needed to move the needle."
Says a carbon tax is needed to correct the unpriced externality, and the market will do the rest.
"A carbon tax is needed to correct the unpriced externality & market will do the rest."
Last updated: 2020-06-25 (newest answer).
