4 ms·
IIRC current estimations of a carbon price accurate to the social costs of a ton of CO2 are near US$185 [1]. It is probably unrealistic to assume that such a pr
by r0uv3n 4y ago
IIRC current estimations of a carbon price accurate to the social costs of a ton of CO2 are near US$185 [1]. It is probably unrealistic to assume that such a price is politically achievable within the next 10 years (even if all the income from such a tax is redistributed). Making gas more expensive is really not popular.
Another option is emissions trading, where a fixed amount of CO2 certificates are issued over some timespan (with the amount calculated to fit some emissions goal). The price is then determined by the market.
Of course this should also lead to high CO2 prices, which will be unpopular, but with proper protections against future changes to the system in place, politicians might be able to absolve themselves of responsibility and more or less put the blame on the market. I think that might make this more politically achievable (especially since possibly the effects on consumer prices might only appear a while after the relevant political decisions are already made).
[1]: https://www.nature.com/articles/s41586-022-05224-9 https://www.nature.com/articles/s41586-022-05224-9