tag:blogger.com,1999:blog-35974543.post4708043059298163527..comments2023-10-26T08:26:21.572-04:00Comments on The Jolly Green General: Bob Frank on Coase and Cap and TradeJim caseyhttp://www.blogger.com/profile/08951841123149476854noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-35974543.post-59612357329183586072010-02-15T13:36:05.502-05:002010-02-15T13:36:05.502-05:00I think it is interesting that the author points o...I think it is interesting that the author points out that critics of cap and trade and carbon taxing including conservatives believe it is a form of "social engineering." It is funny to me that taxes on carbon can be construed as social engineering and a violation of liberty. If we continue to abide by that kind of thinking, we will never be able to develop a successful carbon-cutting Stephanie Beebenoreply@blogger.comtag:blogger.com,1999:blog-35974543.post-50989865550111749492010-02-15T01:06:18.327-05:002010-02-15T01:06:18.327-05:00This article emphasizes the importance of decision...This article emphasizes the importance of decision makers to properly interpret and understand basic economic principles. I'm glad the author was able to meet directly with Coase and have him clear up some of the confusion. <br /><br />The article mentioned how the externalities associated with CO2 emmisions are practically impossible to escape. In addition there is no current market for Jarrett Smithhttps://www.blogger.com/profile/08897659557504091888noreply@blogger.comtag:blogger.com,1999:blog-35974543.post-81890301709042223182010-02-14T16:37:08.798-05:002010-02-14T16:37:08.798-05:00The problem of global warning is a good example of...The problem of global warning is a good example of thinking about negative externalities and the best way to deal with it. The regular approach would be to analyze the marginal cost and marginal benefits of carbon. emission. The optimal level of emission will be at the point where the costs from emitting an extra unit of carbon is greater than its benefits.But as others have said in their posts, Aparajita Singhhttps://www.blogger.com/profile/15722376197886268071noreply@blogger.comtag:blogger.com,1999:blog-35974543.post-35351031687561938232010-02-11T20:41:52.614-05:002010-02-11T20:41:52.614-05:00Many people have expressed concern about the pract...Many people have expressed concern about the practicality of assigning a monetary cost to a unit of carbon emission. There is no way to perfectly determine the cost of emissions, yet the inability to determine cost cannot be an excuse for inaction. A foundation for determining costs of emissions would be to start with a hedonic pricing technique that looks at the relationship between air Chashttps://www.blogger.com/profile/15790424651317180663noreply@blogger.comtag:blogger.com,1999:blog-35974543.post-47830017125238254512010-02-11T18:26:46.338-05:002010-02-11T18:26:46.338-05:00Coase argued that if property rights are well defi...Coase argued that if property rights are well defined and transaction costs are low, a market will develop for the externality – ultimately reaching an efficient solution, where costs are minimized. It is clear that in the case of carbon emissions and global warming, property rights are unhelpful, as pollution is not confined to a localized area, and transaction costs are high because so many Katie Beannoreply@blogger.comtag:blogger.com,1999:blog-35974543.post-15083692501965877182010-02-10T22:56:34.505-05:002010-02-10T22:56:34.505-05:00I agree with the use of taxes or permits of pollut...I agree with the use of taxes or permits of pollutants in order to reduce the total amount of damage an individual does to a group of people (a population or society as a whole). <br /><br />One important distinction this article makes that free markets make the most efficient solutions in a market that does not have significant transaction costs. As the article points out, however, frequently JBhttps://www.blogger.com/profile/15426121888248581567noreply@blogger.comtag:blogger.com,1999:blog-35974543.post-6217208469396158532010-02-09T10:48:37.896-05:002010-02-09T10:48:37.896-05:00I agree with Michael in that the article really pr...I agree with Michael in that the article really provides an economist's view of the current policy issue. Coase does not dance around the issue and provide a solution simply to please one party or the other. He seems to have a very straight forward approach to the problem, which involves government intervention: "Those with inexpensive ways of reducing emissions will find it attractive Unknownhttps://www.blogger.com/profile/03720244184582303759noreply@blogger.comtag:blogger.com,1999:blog-35974543.post-58795418913389931322010-02-08T22:16:10.531-05:002010-02-08T22:16:10.531-05:00What I like about this article is that it portrays...What I like about this article is that it portrays Coase as he is...an economist. He is not a politician and therefore does not entirely follow the modern conservative thread. His agreement that either cap & trade or taxing carbon is a hope for the future. The effects of CO2 on the world are undeniable, the problem is that no one can seem to do anything about it yet. Maybe if more high Anonymoushttps://www.blogger.com/profile/04555184591891270339noreply@blogger.comtag:blogger.com,1999:blog-35974543.post-3146861493044406042010-02-08T19:53:14.378-05:002010-02-08T19:53:14.378-05:00Most discussion about greenhouse gas regulation me...Most discussion about greenhouse gas regulation mentions only CO2 regulation. Are the cap & trade and tax proposals for only CO2 or also other greenhouse gases (CH4, N2O, and fluorinated gases according to EPA)? I suppose this is because CO2 has been the main increasing emission (at least in the US), but I wonder if CO2-only regulation might cause perverse incentives to increasing CO2 stuttsbhttps://www.blogger.com/profile/06803976105101591129noreply@blogger.comtag:blogger.com,1999:blog-35974543.post-61898253468377355542010-02-08T18:55:51.755-05:002010-02-08T18:55:51.755-05:00Frank's article is very well written and certa...Frank's article is very well written and certainly makes Coase an even more interesting economist to study. Since CO2 levels are so hard to track and measure, we therefore cannot know the precise level of transaction costs necessary to solve carbon emission disputes. As Frank writes, this is why even Coase feels we need some sort of Government intervention. As we talked about in class withPearson Nibleynoreply@blogger.comtag:blogger.com,1999:blog-35974543.post-44013481451290247912010-02-08T16:26:07.071-05:002010-02-08T16:26:07.071-05:00The difficulty in coming to an agreement regarding...The difficulty in coming to an agreement regarding the solution to global warming stems from our inability to definitively calculate the costs of global warming/ CO2 emissions in relation to the benefits of unregulated CO2 emissions. This negative externality could be solved by cap and trade or taxes on emmissions,but both measures face opposition in Congress due to the fact that we don't Taylornoreply@blogger.comtag:blogger.com,1999:blog-35974543.post-21822017829392504982010-02-08T16:05:28.421-05:002010-02-08T16:05:28.421-05:00Another interesting overview and application of Co...Another interesting overview and application of Coase. The comment about markets failing because we "don't take into account the costs that our carbon dioxide emissions impose on others" also intrigues me. I think that this is one place Ned's comments come into play. If we don't really know how much damage we are doing, it seems almost impossible to take into account the double ahttps://www.blogger.com/profile/12773034945998817518noreply@blogger.comtag:blogger.com,1999:blog-35974543.post-72678277681827587082010-02-08T14:44:51.987-05:002010-02-08T14:44:51.987-05:00I think we still have a long way to go in terms of...I think we still have a long way to go in terms of figuring out what is a reasonable cost/price of carbon emissions. One of the largest troubles is determining how much damage a unit of CO2 actually does. Once you consider where this carbon actually goes and how long it stays there, its hard to define its damage. This uncertainty about external costs related to emissions can be interpreted as Nedhttps://www.blogger.com/profile/01878370953520223515noreply@blogger.com