As the hysteria over global warming heats up, carbon taxes have become the “cool” option. Environmentalists love them. So do politicians, who are more than happy to raise taxes while scoring political points. Carbon taxes, or other analogous pricing schemes, are now prevalent in Western Europe, and are making headway in North America. For example, California recently joined forces with the Canadian Provinces of Ontario and Quebec to create an integrated cap-and-trade carbon market. On top of this, many well-known economists support carbon taxes, thinking they’re the best way to mitigate man’s contribution to climate change. A new report written...