Rex W. Tillerson (source
Chairman and Chief Executive Officer says:
There is another policy option that should be considered, and that is a carbon tax.
As a businessman it is hard to speak favorably about any new tax. But a carbon tax strikes me as a more direct … a more transparent … and a more effective approach. It avoids the costs and complexity of having to build a new market for securities traders or the necessity of adding a new layer of regulators and administrators to police companies and consumers. And a carbon tax can be more easily implemented. It could be levied under the current tax code without requiring significant new infrastructure or enforcement bureaucracies.
A carbon tax is also the most efficient means of reflecting the cost of carbon in all economic decisions – from investments made by companies to fuel their requirements to the product choices made by consumers.
In addition, such a tax should be made revenue neutral. In other words, the size of government need not increase due to the imposition of a carbon tax. There should be reductions or changes to other taxes – such as income or excise taxes – to offset the impacts of the carbon tax on the economy.
Finally, there is another potential advantage to the direct-tax, market-cost approach. A carbon tax may be better suited for setting a uniform standard to hold all nations accountable. This last point is important. Given the global nature of the challenge, and the fact that the economic growth in developing economies will account for a significant portion of future greenhouse-gas emission increases, policy options must encourage and support global engagement.
Watch for yourself.
Take 5 min! ExxonMobil CEO,
Rex Tillerson explains the benefits of a transparent, predictable carbon
tax; "a refundable GHG emissions fee."