A growing number of centre-left economists, who might be expected to be vociferous supporters of carbon prices, have soured on the policy. These critics focus on two points
According to the World Bank, there are now 73 carbon-pricing schemes across the world, covering 23% of global emissions. That is up from just 7% a decade ago. The bank’s tally includes both emissions-trading schemes, where polluters can trade permits in a market, and carbon taxes, where a government sets a price directly. The largest scheme is in China and was launched in 2021. It covers the country’s energy industry, and therefore 9% of global emissions.
This tentative action reflects the critics’ second worry: equity. They argue that rather than ensuring polluters pay, the cost of carbon prices falls too heavily on the poor. Such initiatives raise energy prices—usually the only area of the economy that is entirely subject to them—and push industrial jobs overseas, beyond the reach of emissions-trading schemes. Anticipating pushback on these grounds, politicians water down the schemes. Therefore the promised emissions cuts never materialise.
Thankfully, there are ways to disentangle cause and effect. Marion Leroutier of the Stockholm School of Economics uses a “synthetic control” method to examine a top-up tax on the’s emission-trading scheme that was introduced by Britain in 2013. To see the effect of this higher carbon price, Ms Leroutier employs data from othercountries to fashion a hypothetical version of Britain that did not introduce the tax—akin to a control group in an experiment.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Older people making new claim for PIP could get up to £691 for 10 yearsNearly half a million people claiming their State Pension are also in receipt of PIP.
Read more »
Simon Cowell told off for making 'disrespectful' noises on BGTSimon Cowell has been told off by Dec on BGT after deciding to make cat noises down the microphone...why, we don't know.
Read more »
Female police officer suffers serious head injuries while making arrest in WakefieldA female police officer has suffered serious head injuries while attempting to make an arrest in Wakefield.
Read more »