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Pricing carbon: Floored

Posted on 21 March 2014

It takes a particular kind of environmental policy to irk industrialists and greens alike. In its short life the Carbon Price Floor (CPF), a tax on pollution that was frozen by the chancellor of the exchequer on March 19th, has done precisely that. Holding down the unloved levy—for four years from 2016—will cut energy costs for businesses and householders.
But it leaves Britain’s climate policy in a mess. Carbon taxes or trading schemes, which aim to encourage investment in low-carbon generation by steadily raising the cost of alternatives, are the cheapest way to clean up smoggy economies………………………………………..Full Article: Source


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