by Harry on March 13, 2019

If you were an MP, and your party was in government, and it proposed a motion, but promised that you could have a free vote on that motion, but then at the last minute whipped you to vote against a slightly modified version of that same motion (the motion it, itself, had proposed, minus one statement of fact which, though removed, everyone knows still to be a fact), how long would it take you to get back to your constituency and prepare for a general election? And, more generally, what would you be thinking?

And, does this count as a victory for May? The motion she proposed passed, after all, despite her orders for her party to vote against it.

Why is carbon pricing so hard?

by John Q on March 13, 2019

I’ve just published a piece in Aeon (an excellent and free online magazine) drawing on the analysis in my (about to be published) book Economics in Two Lessons. I make the case that carbon pricing, whether through a tax of an emissions trading scheme, is the most cost-effective way to stabilize the global climate. Moreover, it’s straightforward to offset any adverse effects on low-income earners, displaced workers and others.

That raises the obvious question: if carbon pricing is so good, why is it so hard to implement, compared to less efficient alternatives like mandatory renewable targets. One factor, which I discuss, is that the creation of property rights over previously open-access resources creates obvious, and often powerful losers.

I was limited by space, so I couldn’t discuss the more puzzling problem of why regulations are more politically salable than prices even in the absence of income effects.