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Paul Krugman

@paulkrugman ↗

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Last Checked Sept. 16, 2022

Created

Wed Aug 17 17:02:54 +0000 2022

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Paul Krugman @paulkrugman

On the other hand, given those externalities, a carbon tax alone wouldn't be first-best either. If there were no political constraints, we'd probably want a mix of emissions taxes and industrial policy. But you can't ignore those constraints; getting the IRA is a miracle 2/ — PolitiTweet.org

Posted Aug. 17, 2022

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Paul Krugman @paulkrugman

Not sure we even have a disagreement. The likelihood of positive externalities from alternative energy makes a subsidy-based approach to climate better than your usual second-best policy — but there is definitely a case for broad disincentives to emit greenhouse gases 1/ — PolitiTweet.org

Olivier Blanchard @ojblanchard1

1. A mild disagreement with @paukrugman on the measures to fight global warming in the IRA. It is all subsidies, no… https://t.co/rF7oWWXuHg

Posted Aug. 17, 2022

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Paul Krugman @paulkrugman

I'd add that among the political constraints is the reality that if you do clever things to compensate voters who lose from taxes ... they won't notice. E.g., schemes to neutralize the impact of carbon taxes with lump-sum transfers were just naive about how much voters know 3/ — PolitiTweet.org

Posted Aug. 17, 2022

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