The Center for Progressive Reform recently published an issue brief that explains how carbon pricing is necessary, and then argues that it is both practically and politically insufficient for achieving a clean energy transition.
They argue that a larger vision for a green transition is needed. From a political perspective, carbon prices can appear as threatening, even when the economic and environmental benefits are promoted. Furthermore, a price mechanism allows private entities, not the public, to be the primary driver of change. In practice, it can be difficult to properly calibrate a market-based system because politicians are unlikely to set prices high enough to induce the necessary change, and both cap-and-trade programs and carbon taxes are inherently uncertain.
They defend a mix of policy options, where carbon price supplements other coordinated and deliberate mechanism to achieve an accountable, effective and equitable transition.
Access the brief through this link.
Access the full paper through this link.