Assessing Criticisms of Carbon Pricing
A recent review by van den Bergh and Botzen and published in the International Review of Environmental and Resource Economics challenges many of the common criticisms leveled against carbon pricing, a cornerstone of climate policy. Critics often argue that carbon pricing is ineffective, leads to minimal emissions cuts, lacks empirical support, and is politically unrealistic. However, the authors demonstrate that these claims are largely unfounded.
- Effectiveness: Carbon pricing has proven effective in reducing emissions and stimulating innovation in low-carbon technologies.
- Evidence: A wealth of empirical evidence supports the effectiveness of carbon pricing in various contexts.
- Alternatives: Critics rarely propose viable alternatives that effectively address climate change while maintaining efficiency, equity, and global harmonization.
The authors emphasize the importance of a consistent and evidence-based academic stance on carbon pricing. Unfounded criticisms can undermine political support for this crucial tool in the fight against climate change.
Carbon pricing remains a vital component of climate policy. By addressing concerns and promoting proper implementation, policymakers can leverage this powerful tool to achieve global climate goals…
- Read the paper: Jeroen C.J.M. van den Bergh and Wouter W.J. Botzen (2024), “Assessing Criticisms of Carbon Pricing”, International Review of Environmental and Resource Economics: Vol. 18: No. 3, pp 315-384. http://dx.doi.org/10.1561/101.00000172
