Argument: Carbon taxes are politically neutral to different energy companies

Issue Report: Cap-and-trade versus carbon tax


Bailey. “Carbon Taxes Versus Carbon Markets”. 18 May 2007: “Is there an objective, scientific way to allocate emissions permits? Not really. The process is inherently political. Chuck Chakravarthy and John Rhoads, energy consultants for Accenture, are blunt in a January article in Public Utilities Fortnightly. ‘Early winners will be the companies best able to shape regulations,’ they warn. They urge utility executives to lobby now for emission allocations that will position them ‘for maximum economic value as compared with competitors.'”

“Carbon Taxes vs. Cap-and-Trade”. Carbon Tax Center: “Carbon taxes can be implemented with far less opportunity for manipulation by special interests, while a cap-and-trade system’s complexity opens it to exploitation by special interests and perverse incentives that can undermine public confidence and undercut its effectiveness.”