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Week 4 – Case study 1 – carbon pricing /3542

Discussion questions

Read the primary article and have a look at least some of the background sources. Draft responses to the four discussion questions (also on the worksheet).

    1. Outline the basic neoclassical case for the use of taxes or emissions trading schemes to address climate change.
    2. Identify the three barriers that, according to Patt and Lilliestam, the widescale adoption of low-carbon technologies faces.
    3. In each case, why would carbon pricing not help to overcome that barrier?
    4. Given that a large part of existing and planned global climate policy initiatives are focussing on carbon pricing, is this attention misplaced?

Primary reading

Patt, A and Lilliestam, J (2018), The Case against Carbon Prices, Joule, Volume 2, Issue 12, 19 December, Pages 2494-2498

Background

Mildenberger, M and Stokes, L (2020), The Trouble with Carbon Pricing, Boston Review, Sept 24th

Funke, F and Mattauch, L (2018), Why is carbon pricing in some countries more successful than in others?, Our World in Data, Aug 10th

Stiglitz, JE et al (2017), Report of the High-Level Commission on Carbon Prices, World Bank

Tvinnereima, E and Mehling, M (2018), Carbon pricing and deep decarbonisation, Energy Policy, Volume 121, October, Pages 185-189

World Bank (2018), State and Trends of Carbon Pricing 2018, International Bank for Reconstruction and Development / The World Bank