It’s in the interest of most people (and especially their descendants) that somebody do something to reduce emissions of carbon dioxide and other greenhouse gases, but each individual would like that somebody to be somebody else. Leave it up to the free market, and in a few generations Florida will be underwater.

The solution to such conflicts between self-interest and the common good is to provide individuals with an incentive to do the right thing. In this case, people have to be given a reason to cut back on greenhouse gas emissions, either by requiring that they pay a tax on emissions or by requiring that they buy emission permits, which has pretty much the same effects as an emissions tax. We know that such policies work: the U.S. 'cap and trade' system of emission permits on sulfur dioxide has been highly successful at reducing acid rain.

Climate change is, however, harder to deal with than acid rain, because the causes are global. The sulfuric acid in America’s lakes mainly comes from coal burned in U.S. power plants, but the carbon dioxide in America’s air comes from coal and oil burned around the planet—and a ton of coal burned in China has the same effect on the future climate as a ton of coal burned here. So dealing with climate change not only requires new taxes or their equivalent; it also requires international negotiations in which the United States will have to give as well as get."

—Paul Krugman in the Oct. 15 issue of The New York Times

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