This week, Joe Stiglitz and Nick Stern published an opinion piece in the Financial Times titled “Obama’s Chance to Lead the Green Recovery“. They call for a “stable, strong” price for carbon, but do not say how that price should be set. I just posted a response in the FT‘s Economists’ Forum. Here’s how it begins:
Joe Stiglitz and Nick Stern are exactly right to emphasize the role President Barack Obama can play in leading the green recovery. They are also right to calling for a “stable, strong carbon price.” But it matters how that price is set. In the United States in particular, the right environmental, political and economic answer is a cap-and-trade system.
Take a look at the whole conversation. I also provided some more detail on the greenness of economic stimuli over at the Environmental Economics blog. Spoiler alert: China’s trumps the United States’ package 2:1.
One Comment
What part of ‘stable’ don’t you understand?