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My dear colleague @JochenMarkard & friends publish a compelling piece in @PNASNews arguing "Why #carbon pricing is not sufficient to mitigate #climate change"
They review 5 dimensions where a #sustainability transition policy is needed (mini-thread)/1
https://doi.org/10.1073/pnas.2004093117">https://doi.org/10.1073/p...
They review 5 dimensions where a #sustainability transition policy is needed (mini-thread)/1
https://doi.org/10.1073/pnas.2004093117">https://doi.org/10.1073/p...
#1 - carbon pricing proponents frame #climate change as "merely" a market failure problem
This view "fails to appreciate the broad scope of the climate challenge and the sweep of system elements that must undergo change."
Think lock-in into ICE cars. /2
This view "fails to appreciate the broad scope of the climate challenge and the sweep of system elements that must undergo change."
Think lock-in into ICE cars. /2
#2 - Carbon pricing is often considered the most efficient tool to cut #CO2
But should efficiency be an overriding priority of #climate policy?
"Efficiency considerations must be tempered by an immediate need to realize carbon neutrality through whatever means actually work"/3
But should efficiency be an overriding priority of #climate policy?
"Efficiency considerations must be tempered by an immediate need to realize carbon neutrality through whatever means actually work"/3
#3 - "in practice, carbon pricing strategies tend to promote the optimization of established business models and technologies"
But "incremental change alone is insufficient to pursue low-carbon pathways at the required pace"
Lock-ins need to be broken up! /4
But "incremental change alone is insufficient to pursue low-carbon pathways at the required pace"
Lock-ins need to be broken up! /4
#4 - Carbon pricing tends to be predicated on the notion that, eventually, all emissions are covered so no economic decision would escape it
Don& #39;t hold your breath for that...
Instead, "policies need to be tailored to local and/or sectoral contexts"/5
Don& #39;t hold your breath for that...
Instead, "policies need to be tailored to local and/or sectoral contexts"/5
#5 - Finally, proponents of carbon pricing often "fail to acknowledge the substantial contestation around #climate policy and the political nature of markets"
"Carbon pricing strategies are not politically neutral"
#climate policy needs a nuanced approach to its politics /6
"Carbon pricing strategies are not politically neutral"
#climate policy needs a nuanced approach to its politics /6
The article finishes with a quick overview of how #sustainable transition policies can be helpful to overcome these 5 weaknesses of carbon pricing as a lone tool to #climate policy. Many of you are already familiar with them, if not, go and read it! /7 https://doi.org/10.1073/pnas.2004093117">https://doi.org/10.1073/p...
While I generally agree with all the points in the piece, I think the argument is really very simple: carbon pricing is but *one of many* tools needed for #climate policy. With its merits and its shortcomings. Those seeing it as a panacea, do need to check the article. /fin
Coincidentally, a very related paper also in @PNASNews, published just a few days before by @pol_economist & @MichaelAklin, shows that carbon pricing is indeed working - even if #CO2 prices are low! /bonus
https://doi.org/10.1073/pnas.1918128117">https://doi.org/10.1073/p...
https://doi.org/10.1073/pnas.1918128117">https://doi.org/10.1073/p...