The Cost of Carbon
Ars Technica is reporting that some researchers are having issues with the US’s pricing of carbon emissions. The price of carbon emissions is notoriously difficult to pin down, but these researchers are suggesting the US might have missed the mark by as much as a factor of 12. The problem centers around the discount rate, which is the cost of not spending the money on other uses, such as interest or capital investments, for instance. Apparently the researchers claim the US is setting this rate too high. They do not seem to be factoring in certain work that’s been done not just within climate change research, but also with economics and discount rates more broadly. It seems to me this shows an interesting interplay with different social and physical disciplines. Often what’s going on in one area isn’t translated or accounted for in another. Then policy makers have to come up with some sort of semi-educated guesstimate of how to integrate all of this stuff into a cohesive policy. It’s a thorny issue that’s beyond just climate change. However, I unsurprisingly believe we geographers might be a good nexus point within disciplines for just these sort of complex issues. Perhaps we should get involved more deeply with these sorts of estimates to attempt to redress such widely variant estimations. That’s not to discount the important work geographers are already doing, but just to suggest maybe we can get a little more vocal about our great work and how we can contribute.