If, for example, solar power or other renewables can in fact meet most of our energy needs at a reasonable cost, then a high carbon price will encourage that result. And if some other technology or approach is needed, the carbon price will reveal that as well. For starters, it would be great if policymakers could commit to a century-long rising path for the carbon price. When it comes to the national implementation of any global effort to limit CO2 emissions, however, I lean toward a carbon tax over tradable emission permits. In any case, putting the price of carbon on an upward path, whether via a carbon tax or cap-and-trade, is the right tool for the job.

Source: The Guardian January 20, 2020 10:52 UTC