Esty and Porter's Call for a Carbon Tax Misses Badly

Matt Hourihan April 29, 2011
April 29, 2011

Connecticut Department of Environmental Protection chief Daniel Esty and Harvard Business School professor Michael Porter issued a call for an “emissions charge” (i.e. a carbon tax) to address the nation’s oil dependence and climate risks in a recent in a recent New York Times essay. Yet their proposal is almost exactly the wrong path to take on clean energy: they wildly overstate the ability of a carbon tax to drive energy innovation, while utterly ignoring the role innovation policy needs to play.