Carbon Pricing: Effectiveness and Equity
James K. Boyce
Ecological Economics, 2018, vol. 150, issue C, 52-61
The 2015 Paris Agreement adopted the goal of limiting the rise in global mean temperature to 1.5–2 °C above pre-industrial levels. Carbon pricing can play a key role in meeting this objective. A cap-and-permit system, or alternatively a carbon tax indexed to a fixed emission-reduction trajectory, not only can spur cost-effective mitigation and cost-reducing innovation, but also, crucially, can ensure that emissions are held to the target level. The carbon prices needed to meet this constraint are likely to be considerably higher, however, than existing prices and conventional measures of the social cost of carbon. This poses issues of distributional equity and political sustainability that can be addressed by universal dividends funded by carbon revenues.
Keywords: Climate change; Climate economics; Carbon pricing; Carbon tax; Cap-and-trade; Social cost of carbon; Carbon dividends (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:150:y:2018:i:c:p:52-61
Access Statistics for this article
Ecological Economics is currently edited by C. J. Cleveland
More articles in Ecological Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().