The price of CO2 is perhaps the most important price in the world, states a news article in the Dutch newspaper NRC (17 September 2021). Carolyn Fischer – professor of Environmental Economics at the Department of Spatial Economics – argues that the current price of CO2 does not include the external costs for the economy and society in the form of climate damage. “The best form of carbon pricing is a CO2 tax that is accepted politically,” says Fischer.
On this topic a point /counterpoint article appeared in the Journal of Policy Analysis and Management, in which 4 researchers examine the value of carbon pricing as a tool for the federal US government to address climate change, recognizing that carbon pricing is not explicitly included in the GND proposal. Fischer, together with Grant Jacobsen (University of Oregon), opens the column by discussing benefits of including well-designed carbon pricing schemes as effective mechanisms in climate policy. David Konisky and Sanya Carley (both Indiana University), then discuss the importance of emphasizing equity and justice in developing solutions.