“A carbon tax would have a net negative effect on consumption, investment and jobs, resulting in lower federal revenues from taxes on capital and labor. Any revenue raised by a carbon tax would be far outweighed by the negative impacts to the overall economy.”

Pricing carbon dioxide (CO2) to wring competitive advantage and to appease environmental pressure groups once drew notable business support from the big players, such as Ken Lay’s Enron and John Browne’s BP. But not from Lee Raymond’s Exxon Mobil, although Rex Tillerson’s Exxon Mobil supports a carbon tax as an alternative to cap-and-trade.

But presumably, as a key member of the National Association of Manufacturers (NAM), Exxon Mobil is opposed to a carbon tax in the current political environment. Another big energy and political player, Dow Chemical, which dropped out of NAM on the gas export issue, is against a carbon tax judging from its Australian experience.…

“Have you noticed something about fossil fuels–we are the only creatures that use them. What this means is that when you use oil, coal or gas, you are not competing with other species. When you use timber, or crops or tide, or hydro or even wind, you are [competing]. There is absolutely no doubt that the world’s policy of encouraging the use of bio-energy, whether in the form of timber or ethanol, is bad for wildlife – it competes with wildlife for land, or wood or food.”

“The eco-pessimist view ignores history, misunderstands finiteness, thinks statically, has a vested interest in doom, and is complacent about innovation.”

It is now 32 years, nearly a third of a century, since Julian Simon nailed his theses to the door of the eco-pessimist church by publishing his famous article in Science magazine: “Resources, population, environment: an oversupply of bad news”.…

“It is the oil industry, not its opponents, that deserves the moral high ground. The moral arguments against oil pretend to be progressive but are in fact re-hashes of primitive philosophical doctrines. For example, ‘sustainability’ is a relic of centuries when human beings repeated the same lifestyle over and over–instead of finding better and better ways to do things.”

Imagine you are an advertising executive, and a CEO asks you: “Do you think you can help improve the reputation of my industry?”

You respond, “Sure, what are some ways your industry makes people’s live better?”

He replies, “Well, actually, our product helps people in just about everything they do. This past year, it helped take 4 million newlyweds to their dream destinations for their honeymoons. It helped bring 300 million Americans to their favorite places: yoga studios, soccer games, friends’ houses.…

Editor note: This post follows Part I’s Crony Capitalism: Principles. On Tuesday, Robert Bradley will post on cronyism in the U.S. energy industry.

Cronyism differs from industry to industry. That variation depends on the extent to which a field is regulated, on how much those regulations are subject to interpretation, and, especially, on whether government is a major payer (as in medical and hospital care) or can give or withhold the permission literally to exist (as in mining or energy production).

Today, a Wall Street firm will contribute millions to the election of Democrats and Republicans, because it dares not risk lacking “access” to the White House and Congress. The firm’s “investment” has nothing to do with innovation, production, or meeting demands of customers. It may be buying protection against political power in exactly the way a restaurant owner in Brooklyn must buy “protection” when the mob comes seeking a cut of his profits.…