How to win over those who will lose most from a global carbon tax

Those who bear a disproportionate share of a carbon tax will mobilise against it ... unless they are given reason not toIn his classic book, The Logic of Collective Action, the late great Mancur Olson explained that the hardest policies to implement are those with diffuse benefits and concentrated costs. Olson's argument was straightforward: individuals bearing the costs will vigorously oppose the policy, while the beneficiaries will free ride, preferring that someone else take up the cudgels.Olson's insight applies to the single most pressing policy challenge facing humanity today, namely the climate crisis. The starting point for addressing it, economists agree, is a tax on carbon. The resulting reduction in emissions would deliver benefits to virtually everyone on the planet. But specific segments of society - Olson's concentrated interests - will bear a disproportionate share of the costs and mobilise in opposition. Continue reading...