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A Prediction Market For Climate Outcomes, Shi-Ling Hsu

University of Colorado Law Review

This Article proposes a way of introducing some organization and tractability in climate science, generating more widely credible evaluations of climate science, and imposing some discipline on the processing and interpretation of climate information. I propose a two-part policy instrument consisting of (1) a carbon tax that is indexed to a "basket" of climate outcomes, and (2) a cap-andtrade system of emissions permits that can be redeemed in the future in lieu of paying the carbon tax. The amount of the carbon tax in this proposal (per ton of C0 2) would be set each year on the basis of …