The Right Price on Carbon

Recognition that a carbon tax is needed is rising in Congress (seven bills now) and in the U.S. presidential race. Worldwide, 23 countries or provinces have implemented them. Yet the rates vary wildly. How can economists set the right tax? The article explains the answer, walking readers through the series of economic, scientific and social considerations, including the discount rate, the social cost of carbon, the future damages climate change will inflict, and the likelihood of climate catastrophes. It also considers how political leaders can realistically proceed.