Source: The Silver Bullet Of Climate Change Policy, By Bob Litterman and Gernot Wagner. January 23, 2014, Forbes Magazine.

Extended Quote:

"The prescription then for anyone seriously concerned about climate change is simple: price carbon to the point where it's now unpriced damages are incorporated into the price, and get out of the way. It's simple. It works. It's conservative to the core.

It's also a silver bullet solution if there ever was one."

Notes: 

Writers of this essay call a carbon tax, "The Silver Bullet of Climate Change Policy" in the headline and in the article for these reasons:

1. It lets 'invisible hand'the market pick the winner and losers, not the government. This is the best incentive available to decrease the pollution that's causing climate change. The market is then identifying this loser that's been clear for decades: greenhouse gas pollution. And the solution is equally clear: create incentives to reduce emissions by pricing it.

The authors assert, "If we make this one change, most other actions that are needed will follow."

2. European Union, California, and China with experiments with in seven city and regional trials, including in Beijing and Shanghai, are all putting a price on greenhouse gas pollution to reduce it.

3. Unfortunately, The International Energy Agency estimates that current global fossil fuels subsidies are well over $500 billion. These subsidies, which incentivize emissions, sadly dwarf the paltry incentives to reduce them.

As the authors note, "Free marketeers, small government advocates, and others who dislike distorting government subsidies should be appalled at the tax money poured into fossil fuels."

4. As any economist with a degree will tell you: increase the price, watch the quantity demanded go down. It's the universal truism that economists call it the "Law of Demand." People are irrational at times, but one thing that economists know for sure is that they respond to incentives.

The authors state, "Everything we know from decades of the study of human behavior would lead us to believe that carbon pollution will go down as the price on emissions increases."

Since pricing carbon has so many benefits for reducing climate change, the best group availabe to get involved with to advocate this policy is Citizens Climate Lobby(CCL). CCL is a citizen lead lobbying group whose sole purpose to persuade members of Congress to pass a consumer-friendly carbon tax that will speed the transition from fossil fuels to clean energy.

Thus, if you are worried about climate change, the best 'Silver Bullet' available is to support a carbon tax and get involved with Citizens Climate Lobby.  

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