For this reason, among others, I cannot join my colleague Tyler Cowen in joining Greg Mankiw's Pigou Club. Even if global warming is a reality, another reality -- one with a much more consistent track record throughout history and across different countries -- is the perversity of political incentives. Given these perverse political incentives (not to mention the inevitiable scrawniness of government's access to information and knowledge), I don't trust government to impose and administer a Pigouvian tax with sufficient disinterestness and skill to make such a tax a plausible policy option.So Don, Kitchen Linker has a question for you: Do you really prefer taxes on income and capital to a Pigouvian energy tax? Please read Pigou means less planning.
At least Don doesn't stoop to linking to the fools at the NoPigou Club.