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
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On 6/29/2010 10:08 AM, Humphrey,Stephen R wrote:
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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.$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