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.

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
[log in to unmask]


On 6/29/2010 10:08 AM, Humphrey,Stephen R wrote:
[log in to unmask]" type="cite">
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