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Saturday, October 14, 2006

NoPigou then what?

Greg Mankiw points out Join the Nopigou Club in Canada's National Post, which basically says pigouvian taxes are central planning, thus they are bad. Kitchen Linker understands this, but the alternative is much more central planning -- direct controls and prohibitions on greenhouse gas production and subsidy of things like ethanol -- all of which are inefficient, to say the least -- better to tax than prohibit.

The NoPigou Club has a blog. Hopefully they'll address the "if not pigouvian tax, then what?" issue.

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