Re:The Fake Factory That Pumped Out Real Money
by slavik81 on Sunday July 17, 2016 @07:28PM
(#12112419)
The 50% in your analysis stems entirely from the fact that you're using ridiculously small integers. At any tax rate greater than $2, the first person would save money by making the change. You say $3, but it could be $2.01. At exactly $2 they would have no preference between enacting the change or not.
Of course, you omitted that the same must be true for cap and trade. The person who can save CO2 at a cost of $2 would have no preference between enacting the change or not if they were only to be paid $2. You'd need to pay them more. Like, $2.01 or $3 if we're only using integers. Exactly like the tax.
Of course, you omitted that the same must be true for cap and trade. The person who can save CO2 at a cost of $2 would have no preference between enacting the change or not if they were only to be paid $2. You'd need to pay them more. Like, $2.01 or $3 if we're only using integers. Exactly like the tax.