Climate change: the pitfalls of carbon pricing
Antonin Pottier, a young researcher in economics at MINES Paris Tech, is highly critical in his published work of what he says is the excessive importance given to single carbon price. EURACTIV’s partner La Tribune reports.
Most economic players and informed observers have long advocated for carbon pricing at a single price. Although there has been an increase in local initiatives in the last few years [and some of them on a very large scale, like in China which is due to extend its emissions trading system to a national scale in the next few years], the pursuit of a single tariff appears increasingly difficult to achieve.
According to Pottier, a researcher at the Centre for Industrial Economics (CERNA) at MINES Paris Tech and author of “Comment les économsites réchauffent la planète”, the central importance attributed to a single price for CO2 in economic theory is very damaging.
Clouding the debate
“Economic scholarship gives the impression that the only possible means to reduce greenhouse gas emissions at a lower cost is to send a price signal, by putting a price on CO2 which must necessarily be a single price for all sectors,” said Pottier.
“It is more or less a dogma, a mandatory proposition that clouds the issue”, he added.
However, the price of CO2 is not the be-all and end-all of climate policy. Other signals are possible in terms of information, as guidelines for citizens, legislation, and investment funding decisions.
“But these are either not raised or not taken seriously,” says Pottier.” In energy efficiency, investments that would generate a return immediately are simply not being made”.
This clearly shows, if any further proof were necessary, that this is not just a matter of price but one that also requires training policies, the development of craft and industrial sectors and funding mechanisms.
