By Ryan AventTyler Cowen weighs in on the cap and trade debate. He focuses on my criticism of Samuelson's seeming failure to understand the relationship between cap and trade and a carbon tax: But Samuelson is correct here and Avent is misleading. When there is uncertainty about the location of the social optimum, and uncertainty about elasticities, a carbon tax and cap-and-trade are by no means equivalent. If you see very high costs from setting the binding cap too low and chok...

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