Carbon Tax Idea

This morning, Professor Reynolds linked to a most interesting article by Ross McKitrick (of McIntyre and McKitrick fame - their detailed statistical analysis showed that the Hockey Stick curve of global climate change by Mann et al. was fundamentally flawed). In this article, Dr. McKitrick proposes a carbon tax that would vary as a function of the amount of warming observed. More warming would equal higher taxes, less warming would result in lower taxes. The measure of warming he proposes is the temperature in the tropical troposphere. Specifically, the tax would vary according to the moving three year average of this temperature as measured by two different organizations. The tax amount would be updated annually. Dr. McKitrick proposes a starting value of the tax of $4.70 per tonne of Carbon Dioxide emission. Just to set that in context, a tonne is 2204.6 pounds, and a gallon of gasoline emits (according to the EPA) 19.4 pounds of Carbon Dioxide (a gallon of diesel emits 22.2 pounds, for comparison). So, the carbon tax on a gallon of gas would amount to about 4.14 cents - not a huge amount, but not zero either. Of course, if warming occurs, the tax would increase. I think this is an intriguing and novel idea, well worth talking about. I do not like the idea of higher taxes, but, if a carbon tax is going to happen, I think this would be the best way to do it that I have heard of to date. By the way, Dr. McKitrick proposes that the tax collected from the carbon tax should offset other taxes (he suggests reducing the income tax) so this would not necessarily mean that the politicians would get more money total to spend. Odds on politicians doing that? Sadly, probably somewhere between slim and none!