Bloomberg View argues for carbon tax whether oil and gas resources are plentiful or fall short

In a recent Bloomberg View article, a strong case is made for a carbon tax based on uncertainty about accessible shale oil and gas resources, which is having a chilling effect on the renewable industry. As Bloomberg states, “Investors come across it hard to look ahead to see regardless of whether green energy sources will be squeezed out by low cost oil and gas or be in terrific demand for the reason that the value of oil and gas is so high.” Whether oil and gas costs are headed up or down, the op-ed argues, the larger discussion must address dealing with climate transformation and a carbon tax can have benefits in both cases.

Despite recent setbacks for the carbon tax advocates, such as the repeal of the Australian carbon tax earlier this summer after three short years of existence, many remain optimistic that a carbon tax could work for the US. And, as the Digest commented in July, Australia’s repeal was relatively inconsequential for the biofuels industry, as no commercial-scale biofuels project had been deployed in Australia since the carbon tax’s passage in 2011.

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