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Does Carbon Pricing work? A qualitative review of Carbon Pricing’s ex-post results, and policy-design suggestions for improving its efficacy.

Randall, Michael LU (2022) In Master Thesis Series in Environmental Studies and Sustainability Science MESM02 20221
LUCSUS (Lund University Centre for Sustainability Studies)
Abstract
The world is currently heading for 3°C of global warming due to global excessive carbon emissions, and while science is producing the knowledge necessary to combat it, the radical change needed is not coming fast enough. Current political and economic paradigms hail carbon pricing as either the, or part of the solution to our carbon emissions problem. This thesis looks at the available (although limited) ex-post research on carbon pricing and sorts the results into several themes. The evidence shows that carbon pricing is Marginal, Ambiguous, Uncertain, Non-transformative, Insufficient, Uneven and Superficial. This thesis then tries to offer solutions to the problems presented, these include pricing, dealing with carbon leakage, and... (More)
The world is currently heading for 3°C of global warming due to global excessive carbon emissions, and while science is producing the knowledge necessary to combat it, the radical change needed is not coming fast enough. Current political and economic paradigms hail carbon pricing as either the, or part of the solution to our carbon emissions problem. This thesis looks at the available (although limited) ex-post research on carbon pricing and sorts the results into several themes. The evidence shows that carbon pricing is Marginal, Ambiguous, Uncertain, Non-transformative, Insufficient, Uneven and Superficial. This thesis then tries to offer solutions to the problems presented, these include pricing, dealing with carbon leakage, and revenue
spending. However, serious questions surround carbon pricing’s efficiency and ability to radically reduce emissions within the timeframe necessary. This thesis argues that carbon pricing should not be seen as a silver bullet, but as an important tool in the climate policy toolbox. (Less)
Abstract (Swedish)
Världen är för närvarande på väg mot 3°C av global uppvärmning pga globala koldioxidutsläpp. Kunskapen som krävs för att minska utsläppen existerar, men de radikala sociala och politiska förändringar som behövs sker hittills inte snabbt nog. Nuvarande politiska och ekonomiska paradigm hyllar koldioxidprissättning som antingen den enda lösningen, alternativt som en del av lösningen. Denna uppsats tittar på den tillgängliga (dock begränsade) ex-postforskning koldioxidprissättning som finns och sorterar in resultaten i diverse teman. Resultaten visar att koldioxidprissättningen är marginell, tvetydig, osäker, icke-transformativ, otillräcklig, ojämn och ytlig. Denna uppsats försöker sedan erbjuda lösningar på de problem som presenteras. Dessa... (More)
Världen är för närvarande på väg mot 3°C av global uppvärmning pga globala koldioxidutsläpp. Kunskapen som krävs för att minska utsläppen existerar, men de radikala sociala och politiska förändringar som behövs sker hittills inte snabbt nog. Nuvarande politiska och ekonomiska paradigm hyllar koldioxidprissättning som antingen den enda lösningen, alternativt som en del av lösningen. Denna uppsats tittar på den tillgängliga (dock begränsade) ex-postforskning koldioxidprissättning som finns och sorterar in resultaten i diverse teman. Resultaten visar att koldioxidprissättningen är marginell, tvetydig, osäker, icke-transformativ, otillräcklig, ojämn och ytlig. Denna uppsats försöker sedan erbjuda lösningar på de problem som presenteras. Dessa inkluderar en diskussion om prissättning, hantering av koldioxidläckage, samt investering av intäkter. Allvarliga frågor kring koldioxidprissättningens effektivitet och förmåga att radikalt minska utsläpp inom den tidsram som krävs uppstår pga de bevis som presenteras. Denna uppsats argumenterar för att koldioxidprissättning inte bör ses som en universallösning, men som ett viktigt verktyg i den klimatpolitiska verktygslådan. (Less)
Popular Abstract
Carbon pricing is hailed as the silver bullet solution to all our carbon problems. Is carbon pricing actually worthy of this praise? In this thesis, I have looked at the evidence, i.e., the results of the different carbon pricing schemes currently implemented around the world, and unfortunately, they do not seem to be working too well. I have found several key problems with carbon pricing, and identified several key policy-designs that would potentially solve said problems. If these were implemented, maybe the results would change. As it stands, carbon pricing should be seen as one tool in the toolbox, one that works well with other tools. It is not a silver bullet, in fact, at the moment it is barely a bullet at all.
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author
Randall, Michael LU
supervisor
organization
alternative title
Fungerar koldioxidprissättning? En uppsats om forskningens resultat, samt vilka policy-designförändringar som kan förbättra situationen.
course
MESM02 20221
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Carbon pricing, Sustainability science, ex post results, policy design, decarbonisation, environmental economics
publication/series
Master Thesis Series in Environmental Studies and Sustainability Science
report number
2022:039
language
English
id
9084960
date added to LUP
2022-06-10 09:21:40
date last changed
2022-06-10 09:21:40
@misc{9084960,
  abstract     = {{The world is currently heading for 3°C of global warming due to global excessive carbon emissions, and while science is producing the knowledge necessary to combat it, the radical change needed is not coming fast enough. Current political and economic paradigms hail carbon pricing as either the, or part of the solution to our carbon emissions problem. This thesis looks at the available (although limited) ex-post research on carbon pricing and sorts the results into several themes. The evidence shows that carbon pricing is Marginal, Ambiguous, Uncertain, Non-transformative, Insufficient, Uneven and Superficial. This thesis then tries to offer solutions to the problems presented, these include pricing, dealing with carbon leakage, and revenue
spending. However, serious questions surround carbon pricing’s efficiency and ability to radically reduce emissions within the timeframe necessary. This thesis argues that carbon pricing should not be seen as a silver bullet, but as an important tool in the climate policy toolbox.}},
  author       = {{Randall, Michael}},
  language     = {{eng}},
  note         = {{Student Paper}},
  series       = {{Master Thesis Series in Environmental Studies and Sustainability Science}},
  title        = {{Does Carbon Pricing work? A qualitative review of Carbon Pricing’s ex-post results, and policy-design suggestions for improving its efficacy.}},
  year         = {{2022}},
}