The single biggest
influence on carbon prices is the relative cost of coal and natural gas.
Its participation in the ETS continues to allow it the flexibility of a wider carbon market; but it has
no influence on the carbon price applied or the level of ambition set for the ETS.
Not exact matches
How one sees the answer boils down to an important difference in perspective
on how to best deal with climate change: Do we (a) try to
influence the course of future human development using
carbon pricing as the main policy tool?
But it's worth remembering that a
carbon price's
influence on gasoline
prices (for example) is quite oblique.
... If you believe that solving the climate change problem «is fundamentally a technological challenge,» then we are in this mess not because of the power of the fossil fuel lobby, not because of the
influence of the campaign of denial, not because of money politics, not because persuading consumers to accept a
price on carbon seems too hard, and not because getting international cooperation has been fraught.
Until I have seen the people in positions of
influence have seriously considered the alternative — such as I suggested earlier
on this thread: https://judithcurry.com/2013/11/21/social-cost-of-
carbon/#comment-416438 — I am likely to remain opposed to high cost policies like
carbon pricing and policies that subsidise and effectively mandate renewable energy.