The Road To Energy Transition Is Paved With Good Intentions- Part 1

The Road To Energy Transition Is Paved With Good Intentions- Part 1

Share to Linkedin Can and will Exxon transform itself? Is a carbon tax politically feasible? If yes, how should a carbon tax be optimally designed? What are the geopolitical implications of a carbon tax on the oil market? A man wears a t-shirt reading "popular revolt, gilet jaune (Yellow vest) since November 17, 2018" as ... [+] he demonstrates to mark May Day or Labour Day on May 1, 2019 in Toulouse, southwestern French. - (Photo by PASCAL PAVANI / AFP) (Photo by PASCAL PAVANI/AFP via Getty Images) Earlier in the month, my co-conspirator, Bob Eccles, and I posted a "what-if" analysis on Forbes related to what would happen to Exxon's financials if the U. S. government were to impose a $100 per ton tax on its carbon emissions. The story received a lot of attention: over 15, 000 views, 50 plus comments on our LinkedIn pages, and several thoughtful personal emails. We tried the age-old case study method of using a specific company to flesh out an abstract debate on the first, second, and third order effects of carbon tax. We believed that the discussion on this topic was deficient in the 30, 000-foot tax and policy debates and