Pricing Nature 1. Intro to Carbon Pricing
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Feb 8, 2021 Discover the essentials of carbon pricing and its pivotal role in combating climate change. The discussion spans the lack of accountability for pollution and the urgent need for financial solutions to climate challenges. Hear about the complexities of implementing carbon pricing and the balance between market fairness and social justice. The podcast also sheds light on comparing carbon tax and cap-and-trade systems while emphasizing protection for vulnerable communities. Get insights on the IPCC's findings and the urgency of reducing emissions.
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Invisible Carbon Causes Big Costs
- Carbon dioxide pollution is invisible but causes serious climate and economic impacts.
- These effects result in real financial costs for individuals and society alike.
Methods to Price Carbon
- Different methods exist to set a carbon price including social costs, market prices, or picking a number.
- The two common systems are carbon tax and cap-and-trade, each with different mechanisms but similar goals.
Cap-and-Trade vs Carbon Tax
- Understand the difference: cap-and-trade sets emissions limits and allows trading permits.
- Carbon tax sets a fixed price for emissions but may not guarantee emission reductions.