Valuing Carbon: From theory to practice and back (again)
Professor Michael Grubb, The Carbon Trust
There are two main discourses around carbon, the first relating to what the cost of carbon should be. It is suggested that setting a legally-defined long term 2050 target is consistent with the literature on the economics of the problem. Secondly, what instrument is best to put a price on carbon is discussed, with a recognition that a rational approach needs to be international, but has to take account of additionality and political economy. It is suggested that basing a UK carbon price instrument on the EUETS makes sense, if the limitations of the EUETS are acknowledged and can be addressed over time. It is recognised that climate change creates some fundamental dilemmas in terms of how to enable investment in low carbon, with current theories not being adequate for the needs of policy; also it is suggested that neither the EWP nor the UK Climate Change Bill really solve the problem of low carbon investment security.
Categories: Conference Presentations, Energy and environment, Energy economics, Energy policy
Tags: 2007 conference, Carbon pricing, Carbon tax, Climate change, Climate finance, CO2, Emission reductions, Energy White Paper, Energy White Paper:an academic critique, EU, Michael Grubb, UK
Valuing Carbon 2007.pdf 331.3 KBDownloads Archive
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