cap and trade

Brookings Institution: 9 Things You Should Know About the Carbon Tax

A “carbon tax” is one way to price carbon emissions generated from the burning of fossil fuels—e.g., coal and natural gas—to generate energy.

Economist call these emissions “negative externalities” because their costs—especially in terms of environmental harm—are not borne solely by the producer, but by the community. Thus, the actual cost to society of producing energy is higher than the cost to individuals.

New York Times: Proof That a Price on Carbon Works

Lawmakers who oppose taking action to lower greenhouse gas emissions by putting a price on carbon often argue that doing so would hurt businesses and consumers. But the energy policies adopted by some American states and Canadian provinces demonstrate that those arguments are simply unfounded.

Boston Globe: Making a Fair Deal on Carbon

Last month, 196 countries reached a landmark consensus agreement in Paris to reduce greenhouse gas emissions in order to slow global warming, agreeing to work toward capping a global temperature increase to 2 degrees Celsius.