The price is not right
The 2015 Paris Agreement requires all nations to combat climate change and to adapt to its effects. Countries promise to reduce their greenhouse gas (GHG) emissions through their Nationally Determined Contributions. Pledges to reduce emissions, however, have implications for economic growth. We esti...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2023-08-01
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| Series: | Frontiers in Climate |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fclim.2023.1225190/full |
| _version_ | 1797741319055998976 |
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| author | Ralph Chami Connel Fullenkamp Andres González Gómez Nathalie Hilmi Nicolas E. Magud |
| author_facet | Ralph Chami Connel Fullenkamp Andres González Gómez Nathalie Hilmi Nicolas E. Magud |
| author_sort | Ralph Chami |
| collection | DOAJ |
| description | The 2015 Paris Agreement requires all nations to combat climate change and to adapt to its effects. Countries promise to reduce their greenhouse gas (GHG) emissions through their Nationally Determined Contributions. Pledges to reduce emissions, however, have implications for economic growth. We estimate the link between economic growth and CO2 pollution levels and find that this relationship is highly non-linear. A country's GHG emissions rise rapidly as its economic activity rises, relative to global activity, meaning that fast-growing countries contribute most heavily to current GHG emissions. Then, using real per-capita GDP as our metric, we estimate how much the carbon price should be in order to remove the economic growth benefit from excess GHG emissions. We find that the implied prices are far higher than the prices on any existing market for emissions as well as estimates of the social cost of carbon. Our findings also have important implications for the global dialogue regarding responsibility for climate mitigation as well as for the choice of policies to support mitigation efforts. |
| first_indexed | 2024-03-12T14:25:05Z |
| format | Article |
| id | doaj.art-3b4dccd576214847bee1c5deaaefe21d |
| institution | Directory Open Access Journal |
| issn | 2624-9553 |
| language | English |
| last_indexed | 2024-03-12T14:25:05Z |
| publishDate | 2023-08-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Climate |
| spelling | doaj.art-3b4dccd576214847bee1c5deaaefe21d2023-08-18T07:47:27ZengFrontiers Media S.A.Frontiers in Climate2624-95532023-08-01510.3389/fclim.2023.12251901225190The price is not rightRalph Chami0Connel Fullenkamp1Andres González Gómez2Nathalie Hilmi3Nicolas E. Magud4Department of Economics, Williams College, Williamstown, MA, United StatesDepartment of Economics, Duke University, Durham, NC, United StatesIndependent Researcher, Washington, DC, United StatesEnvironmental Economics Department, Centre Scientifique de Monaco, Monaco, MonacoIndependent Researcher, Washington, DC, United StatesThe 2015 Paris Agreement requires all nations to combat climate change and to adapt to its effects. Countries promise to reduce their greenhouse gas (GHG) emissions through their Nationally Determined Contributions. Pledges to reduce emissions, however, have implications for economic growth. We estimate the link between economic growth and CO2 pollution levels and find that this relationship is highly non-linear. A country's GHG emissions rise rapidly as its economic activity rises, relative to global activity, meaning that fast-growing countries contribute most heavily to current GHG emissions. Then, using real per-capita GDP as our metric, we estimate how much the carbon price should be in order to remove the economic growth benefit from excess GHG emissions. We find that the implied prices are far higher than the prices on any existing market for emissions as well as estimates of the social cost of carbon. Our findings also have important implications for the global dialogue regarding responsibility for climate mitigation as well as for the choice of policies to support mitigation efforts.https://www.frontiersin.org/articles/10.3389/fclim.2023.1225190/fullGHG emissionseconomic growthcarbon taxesclimate justiceloss and damageParis accords |
| spellingShingle | Ralph Chami Connel Fullenkamp Andres González Gómez Nathalie Hilmi Nicolas E. Magud The price is not right Frontiers in Climate GHG emissions economic growth carbon taxes climate justice loss and damage Paris accords |
| title | The price is not right |
| title_full | The price is not right |
| title_fullStr | The price is not right |
| title_full_unstemmed | The price is not right |
| title_short | The price is not right |
| title_sort | price is not right |
| topic | GHG emissions economic growth carbon taxes climate justice loss and damage Paris accords |
| url | https://www.frontiersin.org/articles/10.3389/fclim.2023.1225190/full |
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