Where Do You Stand on these 5 Questions about Planning vs Markets?

Does anyone actually know social cost functions, especially non-static estimates which evolve over time?

You would have to also model any tax compliance costs, capture costs, etc. For better or worse policy is never developed in a classroom. This is part of the reason I'm skeptical of cap and trade carbon solutions. In theory they sound great, but in reality all of the old coal power plants basically get grandfathered in, you might get MORE pollution before the caps are implemented as companies realize getting a higher C02 baseline will give them more credits, etc. So much can go wrong and so instead of cap and trade maybe the government is better off just pouring money into geoengineering or something.

/r/CapitalismVSocialism Thread Parent