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 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.
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
[log in to unmask]
On 6/29/2010 10:08 AM, Humphrey,Stephen R wrote:
[log in to unmask]"
This article is about investing, but it also illustrates the
challenge of a biofuel company trying to commercialize its
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.
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