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As a follow up to Steve's very interesting post about Amyris, I thought 
I'd post this brief  piece about the potential virtues of a carbon tax 
that was published in last week's Economist magazine.

/The Economist/ has long advocated a carbon tax as the best way to deal 
with climate change. Carbon taxes are a subspecies of Pigovian 
<http://en.wikipedia.org/wiki/Arthur_Cecil_Pigou> tax; taxes that are 
designed primarily to change behaviour rather than to raise revenue. The 
idea is to try to manipulate the price of a good or a service in order 
to capture all the negative externalities it imposes.

http://www.economist.com/blogs/freeexchange/2010/06/taxing_carbon

-Jason

-- 
Jason M. Evans, Ph.D.
Environmental Sustainability Analyst
Environmental Policy Program
Carl Vinson Institute of Government
University of Georgia
Lucy Cobb 318
Office phone: 706-542-2808
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On 6/29/2010 10:08 AM, Humphrey,Stephen R wrote:
> This article is about investing, but it also illustrates the challenge 
> of a biofuel company trying to commercialize its technology--very 
> interesting.
> Amyris has two big investment risks -- product economics and 
> scientific progress. At today's prices, any company using sugar as a 
> feedstock would face similar challenges producing diesel equivalent 
> products that compete with fossil fuels if the price of oil is below 
> $125 per barrel.
> _http://www.glgroup.com/News/The-Amyris-IPO-Would-You-Pay-$6-per-gallon-Of-Diesel--49207.html_ 
>
> Dr. Stephen R. Humphrey, Director,
> School of Natural Resources and Environment,
> Box 116455, 103 Black Hall, University of Florida
> Gainesville, FL  32611-6455  USA
> Tel. 352-392-9230, Fax 352-392-9748
> _http://snre.ufl.edu_ <http://snre.ufl.edu/>