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The Impact of Carbon Pricing on Climate Change
There have been numerous researchers in the past that assert that there is a correlation between the policy of carbon pricing and climate change. However, to achieve address the problem of climate change, the responses to climate policies need to delve into deeper factors than the market failure (Klenert et al., 2018). Carbon pricing refers to developing a specific price on carbon emissions to reduce them and encourage investors to choose safer options. The mentioned move is common in developed countries, that adapt diverse methods of pricing carbon emission (Klenert et al., 2018). To establish the appropriate cost for carbon emissions, the policymakers first estimate the external costs of the emissions, including the cost incurred in case of health issues caused by emissions, or the damages caused to crops or livestock due to the emissions (Klenert et al., 2018). In this regard, carbon pricing leads to accountability from the corporations that release the mentioned emissions. Therefore, the polluter has a choice whether to pay the price of their pollution or stop emitting carbon (Klenert et al., 2018). The aforementioned strategy is beneficial because achieves the environmental goal and ensures the cost of pollution is covered by polluters rather than society. Other than that, carbon pricing promotes the creation of clean technology that has minimal or zero carbon emissions (Klenert et al., 2018). Nonetheless, this paper will highlight how this tactic is not adequate to deal with the problem of carbon emissions due to carbon pricing frames, it fails to encourage transformation, promotes one general universal solution, disregards political realities and emphasizes efficiency rather than effectiveness.
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- School: Open University
- Course: Accounting and Finance
- Subject: Economics
- All documents for this course ›
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- Section: Homework & Assignments
- Made on: 01-29-2024
- Type: .pdf
- Pages: 5
- Language: English
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