In the NewsChicago Booth ReviewMarch 1, 2019
The tax that could save the world
A carbon tax is meant to impose costs on carbon usage that the market price doesn’t capture, effectively increasing the price of a barrel of oil or a tank of gasoline to account for future environmental and health damages. But what is the price of carbon? That, according to the University of Chicago’s Michael Greenstone, is “the most important number you’ve never heard of.” And it is up for debate.