Table of Contents: Carbon Pricing Series Pt. 1 Take action this week Upcoming trainings

What exactly is carbon pricing, and why do economists so often point to it as an effective climate solution?

Last week, CCL’s new six-part Carbon Pricing Education Series with Resources for the Future got underway to answer that question and many more. More than 400 people attended the first session this past Thursday night, where Dr. Marc Hafstead focused on the economics of carbon pricing. Marc is a fellow at RFF and the Director of their Carbon Pricing Initiative.

Carbon pricing puts a price on pollution, allowing market forces to help drive emissions reductions. “The economic case for carbon pricing is that it creates revenues,” Marc explained. “Which is much different than any other regulations or direct government investment that would actually lose money for the government.”

The session also covered pros and cons to some of the major, existing approaches to carbon pricing, including cap and trade and carbon taxes, and the advantages and challenges of each. 

Another important takeaway was that evaluating carbon pricing isn't always as simple as looking at emissions before and after a policy is implemented. Economic conditions, energy markets, and other policies can all affect emissions at the same time. 

That's where economic modeling comes in. Economists can use different models to estimate how proposed policies could affect emissions, the economy, households, and different regions.

“When we are evaluating a policy, what do economists look for?” Marc asked. “We look for efficiency. What are the costs of the reductions? And then we look at the distributional effects. How are the costs distributed across the economy?”

That question of distribution will be especially important as the series continues. Carbon pricing isn't just about how much emissions a policy can reduce. It's also about designing a policy that works for people across different income levels and geographic regions.

Marc concluded his talk saying, “I think it's reasonable to say that carbon pricing is, with a few exceptions, the most cost-effective way of reducing emissions, especially at a moderate to large scale.”

That's just the beginning. The six-part series will continue with five more sessions on the first Thursday of the month, each exploring the real-world evidence and economics behind carbon pricing and how policy design can address concerns about affordability and distribution. You can RSVP for future sessions here.

Missed the first session? Watch the recording to get the carbon pricing basics and learn why economists see pricing pollution as such a powerful tool for cutting emissions.

In other news this week:

• Progress on permitting reform: A bipartisan pair of representatives just introduced a new House bill to streamline the approval of interstate transmission projects. The bill is called the CLEAR Act, led by Reps. Scott Peters (D-CA-50) and Gabe Evans (R-CO-8). It’s great to see this bill enter the conversation, because transmission is one of the critical pieces needed to ensure that permitting reform reduces emissions in a major way. Here at CCL, we’re excited to see this bill come on the scene, and we will continue to advocate for a comprehensive package that includes transmission improvements like this.
  
  
• Inclusion Conference Sept. 18-19: Registration is open for the Inclusion Conference presented by CCL’s People of the Global Majority Action Team! This free, virtual event takes place on Sept. 18-19, and all CCLers are invited. Attendees can expect a day of storytelling, poetry, education and programming designed to bridge divides across perspectives and forge connections rooted in solidarity. Check out the full schedule and register to attend.