Incentives and the Environment: Ryan Avent Critiques Jim Manzi:

RA:

The Bellows » Innovation, and the Gas Tax: I’m not sure why anyone would argue that the imposition of a carbon price, even a relatively modest one, wouldn’t spur innovation. Price increases — the market’s signal for scarcity — lead to a range of human responses, among the most important of which is invention. The opinion that a price increase will likely lead to innovation is little more than a ratification of the idea that markets generally work. But Jim Manzi seems skeptical of...