Washington Failed Twice to Tax Carbon. Is 2018 Different? ($)
A proposal by Washington state to tax carbon have it join California as the only states with a firm plan to tackle emissions reductions beyond the power sector. But the proposal, Billy Pizer, a faculty fellow at Duke University's Nicholas Institute for Environmental Policy Solutions, is a risky move. Spending money on pollution reductions tends to be inefficient when compared with a strong carbon price, which incentivizes consumers and businesses to change behavior. Revenues generated by the fee also tend to increase over time, even as opportunities for pollution reduction become scarcer. The Washington proposal nevertheless has one chief advantage, Pizer tells ClimateWire. It has the potential of passing. "If the money is not being spent effectively, people can change that more easily than getting something on the books," he said, noting that the federal Clean Air Act was amended several times to address loopholes and inefficiencies. "You do whatever you can to get the architecture in place and then amend it later on."