CARBON PRICING

CARBON PRICING

It is generally accepted by climate-change activists that burning fossil fuels, which put CO2 into our ecosystem, is the principal cause of climate change. And it is generally accepted that “putting a price on carbon”, taxing the fuels that emit the CO2 (and therefore price-favoring energy sources that do not) is a useful strategy.

Putting a price on carbon can be done two different ways. One is called “cap and trade” — setting limits on how much CO2 we will accept and selling “permits” to burn the fossil fuel that will produce that limited amount. The demand for those licenses effectively determines the price paid for them.

The other method is simply to “tax” the fossil fuels based on the emissions they generate.

There is a difference of opinion among activists about which is better. But the big differences of opinion, the ones that cause disagreements that slow down the efforts to put a price on carbon, are about “what to do with the revenue raised”.

Dedicated activists often want to devote those revenues to promote green energy or to redress people suffering climate injustice. Other activists (including one of the founders of this site) support carbon-fee-and-dividend, by which all the revenue raised pricing carbon is simply returned in equal shares to everybody. This approach has the advantage of being much more politically palatable since most people — 70 percent or more — get more back in their carbon “dividend” than the fees cost them in increased energy costs.

Our own Mike Shatzkin spoke to these issues at the Sarasota Institute in the spring of 2020.

Carbon pricing | ACCIONA Sustainability

CURRENT NEWS

KEY RESOURCES

How Carbon Dioxide Emissions Would Respond to a Tax

02/17/22
CBO and the staff of the Joint Committee on Taxation projected the budgetary effects and the change in emissions of carbon dioxide (CO2) and other greenhouse gases (GHGs) that would stem from a potential tax…

FIVE THINGS TO KNOW ABOUT CARBON PRICING

09/16/21
Deterring the use of fossil fuels, such as coal, fuel oil, and gasoline, is crucial to reducing the buildup of heat-trapping greenhouse gases in the atmosphere. Carbon pricing provides across-the-board incentives to reduce energy use…

Key to Biden Climate Agenda: The Social Cost of Carbon Explained

02/08/21
Michael Greenstone, EPIC Director, said reverting to the Obama-era calculations would yield a social cost of carbon of $125 per ton, assuming it took into account lower interest rates in recent years.

Report of the High-Level Commission on Carbon Pricing and Competitiveness

10/01/20
The potentially adverse impact of carbon pricing on the competitiveness of businesses and economies has been a matter of concern to industry and policymakers.

Putting a Price on Carbon: Evaluating A Carbon Price and Complementary Policies for a 1.5° World

10/01/20
Putting a price on carbon is necessary to reduce emissions but sufficient to get to full decarbonization by 2050. Complementary policies with a carbon price are needed to achieve full decarbonization.

Carbon Pricing

08/11/20
The Nicholas Institute assesses carbon pricing schemes for environmental integrity, cost-effectiveness, and distributional equity. Since the 2007 landmark Supreme Court decision Massachusetts v. EPA, we have explored carbon trading as a method for regulating emissions…

Why Price Carbon?

08/11/20
There is widespread recognition and scientific consensus that in order to stabilize the climate and prevent the worst consequences of the climate crisis, greenhouse gas emissions must be reduced by at least 80 percent by…

Carbon Pricing 101

08/11/20
When carbon emissions cost money, we produce less of them.

How Can the US Reduce Climate Change? Carbon Pricing

08/11/20
Q&A with Frank Wolak, director of the Freeman Spogli Institute for International Studies (FSI)’s Program on Energy and Sustainable Development(PESD), and Mark Thurber, associate director for research of PESD. Written with Joshua Kenway.

Carbon Tax Research Initiative

08/11/20
Climate change presents serious threats to the economy, the environment and national security. To address these threats, a growing number of influential businesses, scientists, NGOs, policymakers, and thought leaders are calling for a carbon tax,…

Carbon Pricing 101

07/24/20
An introduction to carbon pricing, including carbon taxes and cap-and-trade programs, the benefits and design of pricing policies, and applications around the globe.

What is Carbon Pricing?

07/24/20
Carbon pricing is an approach to reducing carbon emissions (also referred to as greenhouse gas, or GHG, emissions) that uses market mechanisms to pass the cost of emitting on to emitters. Its broad goal is…

Carbon Pricing as a Solution to Climate Change

02/14/20
FCNL believes that carbon pricing is one of many essential tools that Congress should use to address climate change and shift towards a clean energy economy. While we have not endorsed any particular bill at…

U.S. State Carbon Pricing Policies

06/01/19
Compared to command-and-control regulations, carbon pricing is a market-based mechanism that creates financial incentives to reduce greenhouse gas (GHG) emissions. Ten states that are home to over a quarter of the U.S. population and account…

Citizens Climate Lobby

01/19/19
Citizens’ Climate Lobby is a non-profit, non-partisan, grassroots advocacy organization focused on national policies to address climate change. By building upon shared values rather than partisan divides, and empowering our supporters to work in keeping…

MORE NEWS

June Developments Point To Inevitability Of National Carbon Price

By Andy Stone  Photo: AFP via Getty Images   06/30/20  
The largest study on the topic to date demonstrates that the higher a country’s carbon price, the more it reduces emissions.

Carbon pricing is growing globally, but still faces headwinds in the U.S.

By Ben Geman  Chart: Axios Visuals   06/01/20  
Carbon pricing via taxes and emissions trading systems are growing worldwide but confront a mix of old and new problems, a new World Bank report shows.

Rhode Island’s Carbon-Pricing Study Seeks Public Feedback

By Tim Faulkner   05/25/20  
Rhode Island’s carbon-pricing study is officially underway amid an uncertain future for local efforts to address the climate crisis.

The world urgently needs to expand its use of carbon prices

Illustration: Albert Tercero   05/23/20  
If economists ruled the world, carbon prices would drive most of the action on climate change. Polluters would pay for the negative externality their emissions inflict on the planet. There might be differences on the…

Is this carbon price enough? Here’s what the experts say

By 5/20/20   05/20/20  
Is this carbon price enough? Here’s what the experts say By Jerry Hinkle, CCL Economics Policy Network CCL volunteers are currently advocating for the passage of the Energy Innovation and Carbon Dividend Act (H.R. 763).…

Pa. carbon cap and fee plan projected to cut emissions, hasten coal closures

By Laura Legere  Photo: Jessie Wardarski/Post-Gazette   04/24/20  
Pennsylvania's plan to begin requiring power plants to pay to release carbon dioxide into the air would reduce greenhouse gas emissions over the next decade and...

How carbon fees promote “free-market innovation”

By Jonathan Marshall   03/12/20  
How carbon fees promote “free-market innovation” By Jonathan Marshall, CCL Economics Policy Network When USA Today recently editorialized in favor of a national carbon fee and dividend to “prevent further catastrophic changes in the world’s…

Could Hawaii Pass The Country’s First Tax On Carbon Emissions?

By Ryan Finnerty  Photo by Simon_sees   03/09/20  
The idea of a carbon tax has broad support from economists and a version was already approved by the state Senate. If agreed to by the House and Gov. David Ige, it would become the…

Conservative climate event pushes Congress for carbon price

02/03/20  
FOR IMMEDIATE RELEASE Conservative-only climate event pushes congressional Republicans for carbon price WASHINGTON, D.C., Feb 3, 2020 — This week, conservative voters from across America are in D.C. to build Republican support for a carbon…

Columbia University economists publish study of bipartisan carbon pricing bill

11/06/19  
A group of five economists from Columbia University’s Center on Global Energy Policy has published “An Assessment of the Energy Innovation and Carbon Dividend Act.” This study offers an up-to-date, independent assessment of the Energy…

Carbon Pricing as a Policy Instrument to Decarbonize Economies

10/22/19  
A new study analyzes the suitability of different carbon pricing mechanisms as instruments to lower greenhouse gas emissions. ...

Why carbon tax is crucial to curbing climate change

By Feike Sijbesma   09/22/19  
As world leaders gather in New York City this week for the UN General Assembly, climate change is front and centre. And rightly so: the window for action is closing.The 2015 Paris Agreement is the…

Four new carbon pricing bills drop in Congress 

By Danny Richter   07/25/19  
Four new carbon pricing bills drop in Congress By Danny Richter Our push for carbon pricing just took some new, exciting steps forward. First, Florida Republican Rep. Francis Rooney has introduced the bipartisan Stemming Warming…

75 Business Leaders Lobbied Congress for Carbon Pricing. Did Republicans Listen?

By Marianne Lavelle  Photo: Marianne Lavelle   05/23/19  
Microsoft, Pepsi, Levi's and others are calling for carbon taxes or fees that could scale up innovation fast enough to combat climate change.

Why Carbon Credits For Forest Preservation May Be Worse Than Nothing

By Lisa Song  Photo: Fernando Martinho   05/22/19  
The state of Acre, on the western edge of Brazil, is so remote, there’s a national joke that it doesn’t exist. But for geochemist Foster Brown, it’s the center of the universe, a place that…

Silicon Valley gets in the game for carbon pricing and H.R. 763

By Flannery Winchester   05/21/19  
Silicon Valley gets in the game for carbon pricing and H.R. 763 By Flannery Winchester The Silicon Valley Leadership Group (SVLG) — have you heard of them? Maybe not, but SVLG is a public policy…

How does the new carbon pricing bill stack up?

By Jerry Hinkle   12/07/18  
How does the new carbon pricing bill stack up? By Jerry Hinkle, CCL Economics Policy Network Upon the introduction of the Energy Innovation and Carbon Dividend Act, legislation authored by Representative Deutch and others (herein referred…

A Carbon Tax Wave? 7 States Considering Carbon Pricing to Fight Climate Change

By Marianne Lavelle   10/29/18  
Considering the defeat of a carbon tax in Washington this last election, it is stunning to see that we now have 7 states considering carbon pricing! Adding these states to those that already have some…

CCL mobilizes for Washington carbon pricing

10/22/18  
CCL mobilizes for Washington carbon pricing By Jamie DeMarco Ballot Initiative 1631 in Washington state would enact the country’s first steadily rising price on carbon, and it’s a climate fight playing out on the national—even…

Coast to coast state carbon pricing efforts

By Lynn Meyer   09/11/18  
Coast to coast state carbon pricing efforts  By Lynn Meyer  With raging wildfires polluting the air throughout the northwest, storms and flooding ravaging the east coast, and red tide closing the gulf state beaches, it’s…

Blending taxes and cap-and-trade could improve carbon pricing

By Chris Busch  Photo by Mark Wilson   03/21/18  
Although Washington state’s proposed carbon tax failed at the ballot box, carbon pricing remains one of the best policy solutions to mitigate the effects of climate changes as the window to keep global warming below…

Elon Musk’s Unbelievably Simple 12-minute Killer Break Down on Climate Change

03/31/16  
Climate change includes both global warming driven by human emissions of greenhouse gases and the resulting large-scale shifts in weather patterns. Though there have been previous periods of climatic change, since the mid-20th century humans…