carbon market

Over the past year or so, a number of economists and other market-friendly commentators have fallen out of love with market solutions to climate change. Most of them would prefer a carbon tax - which is, on the face of it, surprising.

‘Economists demand new taxes' is not a commonly used headline. So what's going on?

Martin Wolf, the FT's chief economic commentator, is one of those leading the charge for taxes. Unlike some who rely purely utilitarian arguments, Wolf is refreshingly explicit about his libertarian (or as a Brit would put it, liberal) concerns.