Nobel Prize winning economist Joseph Stiglitz says that the first priority of any government is to put the price on carbon. Even though no one knows the exact price of carbon, but zero is certainly the wrong price. Professor Stiglitz, currently chair of Columbia University's committee on global thought, was awarded the Nobel Prize for Economics in 2001 and shared the 2007 Nobel Peace Prize as a key member of the United Nations Intergovernmental Panel on Climate Change. He said that a mispricing of risks and assets had triggered the global financial crisis, but the mispricing in natural resources in carbon is even larger. He also told that the businesses have no incentive to either economise in their use of carbon or to innovate unless we give them some surety about what are the kinds of prices that they ought to be facing.
At present, carbon is primary factor in many industries, and subsequently the overuse of carbon bring about global heating up. As a consequence, I think increasing of carbon price is one of possible ways to dwindle the use of it even though the government did not intend to do that.
Credit: http://www.canberratimes.com.au/news/local/news/general/taxing-carbon-first-priority-of-govt/1903357.aspx
Date: 04/08/2010
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