EXPLAINER: Can climate change be solved by pricing carbon?
— As climate change bakes the planet, dozens of nations and many local governments are putting a price tag on greenhouse gas emissions that are increasing flooding, droughts and other costly catastrophes. Pennsylvania on Saturday becomes the first major fossil fuel-producing state in the U.S. to adopt a carbon pricing policy to address climate change. President Joe Biden is attempting a less direct approach — known as the social cost of carbon — that calculates future climate damages to justify tougher restrictions on polluting industries. A more lax policy would give you a lower carbon price.” In the most efficient world, economists say the two figures would line up, meaning there would be agreement about what climate change damages will cost and the policies used to address them. Following lawsuits from environmentalists, President Barack Obama’s administration crafted the social cost of carbon and began including future damage estimates in cost-benefit analyses for new regulations.
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