A near-term to net zero alternative to the social cost of carbon for setting carbon prices

Kaufman, Noah; Barron, Alexander R.; Krawczyk, W.; Marsters, Peter; McJeon, Haewon

doi:10.1038/s41558-020-0880-3

Cited by 129 publications

(71 citation statements)

References 35 publications

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“…More generally, SMDAMAGE has nothing explicit about the social cost of carbon. Pezzey [40] and Kaufman et al [11] discard the social cost of carbon as impractical for policy use; this paper does the same. (For a sophisticated analysis, see Cai and Lontzek [41].)…”

Section: Fairness Between Countries Equity Considerationsmentioning

confidence: 72%

“…Kaufman et al [11] show results with increasing prices for CO 2 . Their results may be valid when CO 2 is curtailed slowly for the near future and their results depend on the type of gas (Table 2 shows CH 4 prices first increasing).…”

Section: Numerical Resultsmentioning

confidence: 94%

“…See, in particular, Shultz and Halstead [9] who focus on political expediency, and Weisbach and Metcalf [10] who thoughtfully and optimistically discuss the difficulties of tax design in good detail. Kaufman et al [11] propose that policymakers figure out targets to "net zero" CO 2 emissions; their proposal seems no easier politically than other cap and trade mechanisms. Carbon taxes (as in Argentina) do not reduce emissions to any specific limit.…”

Section: The Flaw In Existing Market Designs For Emissionsmentioning

confidence: 99%

“…This mechanism does not attempt to incorporate the social cost of carbon. Kaufman et al [11] concluded that the social cost of carbon is too far removed from actual policy-making. In SMDAMAGE, the auction incorporates only bids from buyers of emission permits and sellers of sequestration contracts.…”

Section: The Smart Market Approachmentioning

confidence: 99%

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A price on warming with a supply chain directed market

Raffensperger

2021

Discov Sustain

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Existing emissions trading system (ETS) designs inhibit emissions but do not constrain warming to any fixed level, preventing certainty of the global path of warming. Instead, they have the indirect objective of reducing emissions. They provide poor future price information. And they have high transaction costs for implementation, requiring treaties and laws. To address these shortcomings, this paper proposes a novel double-sided auction mechanism of emissions permits and sequestration contracts tied to temperature. This mechanism constrains warming for many (e.g., 150) years into the future and every auction would provide price information for this time range. In addition, this paper proposes a set of market rules and a bottom-up implementation path. A coalition of businesses begin implementation with jurisdictions joining as they are ready. The combination of the selected market rules and the proposed implementation path appear to incentivize participation. This design appears to be closer to “first best” with a lower cost of mitigation than any in the literature, while increasing the certainty of avoiding catastrophic warming. This design should also have a faster pathway to implementation. A numerical simulation shows surprising results, e.g., that static prices are wrong, prices should evolve over time in a way that contradicts other recent proposals, and “global warming potential” as used in existing ETSs are generally erroneous.

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Section: Fairness Between Countries Equity Considerationsmentioning

confidence: 72%

Section: Numerical Resultsmentioning

confidence: 94%

Section: The Flaw In Existing Market Designs For Emissionsmentioning

confidence: 99%

Section: The Smart Market Approachmentioning

confidence: 99%

See 2 more Smart Citations

A price on warming with a supply chain directed market

Raffensperger

2021

Discov Sustain

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“…A recent study with a near‐term net‐zero goal estimates US prices should range from US$34 to US$64 per metric ton in 2025 and US$77 to US$124 in 2030 (Kaufman et al, 2020). Another study shows that a middle‐of‐the‐road scenario suggests a median price of US$417 per ton, but this estimate is even higher in some nations (Ricke et al, 2018).…”

Section: The Problems With Carbon Pricingmentioning

confidence: 99%

Beyond Carbon Pricing: Tax Reform is Climate Policy

Green

2021

Global Policy

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The incrementalism of carbon pricing, which includes carbon taxes and emissions trading, has led us astray. It has been proffered as a key component of climate policy, yet evidence clearly shows that its effects are marginal. It provides limited emissions reductions and has provoked considerable political controversy in key large‐emitting countries. More importantly, pricing carbon means viewing climate change as a market failure, rather than as a problem of societal transformation. But rapid decarbonization will require more than market corrections; it demands strong state intervention to reorganize the economy. In this maximalist view, the state must create public goods, rather than merely prevent public bads. This article seeks to expand our collective political imagination about climate policy, moving beyond mundane fights about the appropriate design of carbon pricing. Instead, we need to think bigger. Aggressive climate policy begins with a reassertion of state sovereignty. Multinational corporations use ‘offshore’ tax havens to avoid paying taxes. By closing loopholes on corporate tax evasion, states reaffirm one of their fundamental functions: taxation. This reform would repatriate billions of dollars in missing capital, and help create the political conditions for meaningful action on decarbonization. Tax reform, not just carbon pricing, is climate policy too.

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Phase change composites with thermal‐formability and photothermal storage property for high flux crude oil transmission

Liu

Zhang

et al. 2022

AIChE Journal

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Crude oil pipeline transportation is one of widely used ways in land transportation and comprises a large share of the world's long‐distance oil transmission. Warming and heat preservation of crude oil is vital for efficient oil pipeline transportation. However, it remains a formidable challenge in coping with caused tremendous energy consumption and environmental pollution. In this work, bio‐based phase change composites with superior thermal‐formability and photothermal storage properties were fabricated and molded to photothermal oil transportation system using template‐confined thermoforming strategy. On the basis of desirable thermal energy management ability of PEG as well as the synergistic effects between heat localization and electron nonradiative transition of Fe2O3 nanoparticles, the system realized a remarkable decrease in oil viscosity and efficient transmission. Particularly, the preparation process could be facilely scaled up and indicate real application feasibility. This successful exploration offers a significant path for developing green, highly effective crude oil transportation.

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A near-term to net zero alternative to the social cost of carbon for setting carbon prices

Cited by 129 publications

References 35 publications

A price on warming with a supply chain directed market

A price on warming with a supply chain directed market

Beyond Carbon Pricing: Tax Reform is Climate Policy

Phase change composites with thermal‐formability and photothermal storage property for high flux crude oil transmission

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