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Seven Reasons to Use Carbon Pricing in Climate Policy

Andrea Baranzini, Jeroen van den Bergh, Stefano Carattini, Richard Howarth (), Emilio Padilla () and Jordi Roca ()
Additional contact information
Richard Howarth: Environmental Studies Program, Dartmouth College
Jordi Roca: Faculty of Economics and Business (UB)

Working Papers from Department of Applied Economics at Universitat Autonoma of Barcelona

Abstract: The idea of a global carbon price has been a recurrent theme in debates on international climate policy. Discarded at the Conference of Parties (COP) of Copenhagen in 2009, it remained part of deliberations for a climate agreement in subsequent years. Unfortunately, there is still much misunderstanding about the reasons for implementing a global carbon price. As a result, ideological and political resistance against it prospers. Here we present the main arguments in favor of a carbon price to stimulate a fair and well-informed discussion about climate policy instruments. This includes arguments that have received surprisingly little attention so far. It is stressed that a main reason to use carbon pricing is environmental effectiveness, so not only economic efficiency (including the special case of cost-effectiveness). In addition, we provide ideas on how to implement a uniform global carbon price, whether using a carbon tax or emissions trading.

New Economics Papers: this item is included in nep-agr, nep-ene, nep-env, nep-pke, nep-reg and nep-res
Date: 2015-11
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Working Paper: Seven reasons to use carbon pricing in climate policy (2016) Downloads
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