Exxon CEO on carbon tax

Few people believe that ExxonMobil CEO Rex Tillerson's defense of a carbon tax is not motivated partly by the political difficulty of passing such a tax. In his latest address, he shows that he's cognizant of this criticism:

But when the boss of Exxon attacks climate-change legislation, skepticism is usually in order. “We think it’s fair to view Exxon’s opposition to cap-and-trade – Tillerson’s reasonable critiques notwithstanding – as a tactic meant to delay passage of meaningful legislation,” argue the folks at Green Energy Reporter.

Mr. Tillerson addressed that head on:

Now, some people have suggested that a revenue-neutral carbon tax has no chance of gaining sufficient support in Congress to become law. They say a carbon tax is too politically sensitive and that it is easier and more politically expedient to support a cap-and-trade approach, because the public will never figure out where it is hitting them. They will just know they hurt somewhere in their pocketbook.

I disagree with this assessment. I believe the American people want climate policy to be transparent, honest, and effective. Economists generally agree that achieving a given emissions target costs less under a tax or fee approach than under a cap-and-trade system. I firmly believe it is not too late for Congress to consider a carbon tax as the better policy approach for addressing the risks of climate change. Indeed, there has never been a more opportune time for Congress to pursue this course of action.

Good for him for recognizing, although it doesn't change my opinion of his underlying motivations.