From Josh Barro at Business Insider:

Costly new regulations could breathe life into a carbon tax. “The economic consequences of Obama’s pure regulatory approach, overall, are almost certain to be much, much worse than those of a carbon tax,” said Eli Lehrer of the R Street Institute, a free-market think tank, in an email. “These regulations are likely to have such negative consequences that many Republicans will realize that their only hope of getting rid of them is to establish a workable, limited government alternative.” Lehrer wrote with former Rep. Bob Inglis (R-S.C.) last week that conservatives should embrace a carbon tax. That’s still going to be a tough sale, but if the alternative is “hugely costly regulations” instead of “no regulations,” the sale should be a little bit easier.

Featured Publications