The following is a blog post written by CCAN volunteer Andrew Crane-Droesch. In this satirical piece, he illustrates the benefits of a tax on carbon by telling the story of loud, obnoxious neighbor that needs to turn the volume way down. Take a look!

This is a blog post about carbon taxes. But before I go there, let me tell you a story about a guy named Ernie.

Ernie lives in a small condo in a big city. He has many neighbors, and the walls of his unit are thin. Ernie can hear the muffled voices of his neighbors in the hallway when he comes home from work.

When Ernie is home, his likes to listen to music. His favorite bands include Gorgoroth and Vanilla Ice. Ernie has a powerful stereo. He likes to listen to his favorite songs with the volume turned all the way up. He doesn’t like headphones because they aren’t comfortable.  And they make it difficult to copy Armi ja Danny’s sweet moves.

Ernie’s neighbors don’t like this. They have politely asked Ernie to turn down his music. Ernie resists, saying that his music makes him happy. He argues that sometimes his neighbors are loud too, and he doesn’t like their music either. He argues that this is a free country, dammit, and he can do what he wants.

So the neighbors start playing their own music louder to counteract the NKOTB marathon coming out of Ernie’s apartment. Nobody can sleep. People are starting to lose their hearing. The cats have all run away. What can be done?

Externalities

Ernie’s loud music is an example of an externality. An externality is the cost born by others of anything done for oneself. Ernie experiences pleasure listening to Color Me Badd really loudly on his stereo. But his fun comes at a cost to everyone around him. His neighbors don’t get any pleasure from his music, but they’re the ones losing sleep. And they can’t get the Electric Slide out of their heads.

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