Putting a slowly rising, significant price on carbon emissions would encourage people to burn less fossil fuel without micromanaging by Congress or the Energy Department. This approach would enlist market forces to green the energy sector. It would also allow for similar policies in other nations to connect with America’s, creating a bigger, global market for carbon.
Anything like carbon pricing must get lawmakers’ approval, though, which is the first reason Mr. Obama should make reaching out to them on climate policy a priority. True, a coalition of anti-regulation Republicans and coal-state Democrats killed the last major effort to price emissions, a 2010 cap-and-trade bill. But, in the big budget reform politicians have been promising, they will need new revenue from somewhere. A carbon tax would be an ideal source.