Carbon tax

New working paper makes case for "modest" carbon taxes

Data: Knittel, 2019; Chart: Harry Stevens/Axios

Even "modest" carbon taxes, like those seen in the chart above, would cut emissions as much as the Obama-era vehicle and power plant rules that President Trump is abandoning, an MIT economist found in a new working paper.

Why it matters: The results "underscore the economic power of a carbon tax" compared to "economically inefficient" regulations, writes Christopher Knittel, who directs the MIT Center for Energy and Environmental Policy Research.

Southern Company CEO Tom Fanning on renewables, cybersecurity and more

Tom Fanning, CEO of Southern Company, one of America’s biggest utility companies, sat down with me at last week’s Aspen Ideas Festival in Colorado.

What he said: "If your objective is to put a price on carbon to manipulate carbon I don’t think that makes sense. If somebody says to me, ‘we have a gigantic federal deficit, and we need to raise taxes.’ Does a carbon tax make sense? Yeah I’d be more amenable to that conversation. That means I’m going to tax something in order to raise revenue. Taxing something to change behavior, there’s better ways to do that."