The case for adopting a carbon tax to curb global warming is weaker than most economists and scientists assume. One reason is that William Nordhaus’s influential DICE model, far from producing a reliable estimate of an “optimal” carbon tax, yields vastly different results depending on which numerical estimates are plugged into it.

Robert P. Murphy is a Research Fellow at the Independent Institute and author of the Independent book, Choice: Cooperation, Enterprise, and Human Action.
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Climate ChangeEconomyEnergy and the EnvironmentFederal Tax PolicyGovernment and PoliticsTaxesTaxes and Budget
Other Independent Review articles by Robert P. Murphy
Summer 2006 The Limits of Market Organization