As climate change “bakes” the planet, dozens of nations and many local governments are putting a price tag on greenhouse gas emissions. So far 11 US States have already adopted carbon pricing policies to address climate change. As such, coal, oil and natural gas power plants must buy credits for every ton of carbon dioxide they emit. Other countries impose fuel charges on individuals and also makes big polluters pay for emissions. According to The World Bank, 27 nations currently have some kind of carbon tax. Key issue is to price carbon emissions. The Biden administration’s social cost estimate is about $51, meaning every ton of carbon dioxide spewed from a power plant or tail pipe today is projected to contribute to $51 in economic damages in coming years. The state of New York has its own social cost of carbon, updated in 2020 to $125 a ton to account for economic trends. Canada’s carbon taxes include a minimum fuel charge for individuals equivalent to about $40 per ton. Click on the image to access the article.
