Carbon Pricing: Effectiveness and Equity

By James K. Boyce. Ecological Economics, 2018

234 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Environmental Engineering, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/4cb45091e9c990cb52f219220eb47472c5a0c3f4

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Citations in the corpus

Poverty and distributional effects of carbon pricing in low- and middle-income countries – A global comparative analysis (2019, background): “Arguably, USD 30/tCO2 is a relatively low price level compared to the ones needed to achieve internationally agreed climate targets in the long-run (Boyce, 2018; Pindyck, 2013).”
Agroforestry is paying off – Economic evaluation of ecosystem services in European landscapes with and without agroforestry systems (2019, background): “In the case of carbon markets, prices are also used to regulate emissions (Boyce 2018).”
Low‐carbon transition risks for finance (2020, background): “If part of this revenue is redistributed among citizens, and since richer households consume more carbon and thus pay more in absolute terms, feebates turn carbon prices into a progressive instrument (Boyce, 2018).”