Arik Levinson
@ariklevinson.bsky.social
Reposted by Arik Levinson
✨ We will be featuring the 2025 AERE Scholars & Mentors over the coming weeks! Stay tuned to learn more about the amazing cohort! ✨
October 20, 2025 at 12:01 PM
✨ We will be featuring the 2025 AERE Scholars & Mentors over the coming weeks! Stay tuned to learn more about the amazing cohort! ✨
3/3 Ergo ... "A pre-tax price of $3 per gallon would imply the marginal social benefit of the fuel is nearly 7 times the ($0.44) marginal social cost."
Huh? That ignores the private cost, presumably around $3. Adding that to even their discounted SCC means *total* social costs exceed $3 by a lot.
Huh? That ignores the private cost, presumably around $3. Adding that to even their discounted SCC means *total* social costs exceed $3 by a lot.
August 12, 2025 at 9:49 PM
3/3 Ergo ... "A pre-tax price of $3 per gallon would imply the marginal social benefit of the fuel is nearly 7 times the ($0.44) marginal social cost."
Huh? That ignores the private cost, presumably around $3. Adding that to even their discounted SCC means *total* social costs exceed $3 by a lot.
Huh? That ignores the private cost, presumably around $3. Adding that to even their discounted SCC means *total* social costs exceed $3 by a lot.
2/3 "assume a relatively high SCC of, say, $75. Deflated by a MCPF value of 1.5 that would result in a carbon tax of $50, which equates to about $0.44 per gallon of gas."
Why are we deflating the SCC by the deadweight loss from raising revenue? (Also, since when is $75 "relatively high"?)
Why are we deflating the SCC by the deadweight loss from raising revenue? (Also, since when is $75 "relatively high"?)
August 12, 2025 at 9:49 PM
2/3 "assume a relatively high SCC of, say, $75. Deflated by a MCPF value of 1.5 that would result in a carbon tax of $50, which equates to about $0.44 per gallon of gas."
Why are we deflating the SCC by the deadweight loss from raising revenue? (Also, since when is $75 "relatively high"?)
Why are we deflating the SCC by the deadweight loss from raising revenue? (Also, since when is $75 "relatively high"?)