Exxon Executive Renews Company’s Call For Carbon Tax

Dow Jones Newswires | Feb 10, 2009

By Susan Daker

HOUSTON -(Dow Jones)- An Exxon Mobil Corp. (XOM) executive renewed his company’s call for a carbon tax in lieu of a cap and trade program aimed at lowering emissions in the U.S.

Michael Dolan, a senior vice president at Exxon, said that governments need to “resist the urge to micromanage.”

Exxon has said before the cap and trade was inefficient. Cap and trade is supported by President Barack Obama’s administration, though how the program would work is still under debate.

The carbon tax allows companies to plan for the cost of emissions, Dolan said Tuesday.

With cap and trade, “the cost floats,” Dolan said during a question and answer period with the audience at CERA Week in Houston.

When asked how much the tax should be, Dolan said that should be left up to the policy makers.

Earlier on Tuesday, BP PLC (BP) Chief Executive Tony Hayward gave his support to the U.S. government’s plan to establish a carbon cap-and-trade system, because it gives “environmental certainty.” Hayward was the keynote speaker Tuesday morning at CERA.