Opinion: Putting a price on carbon best way to nurture growth of renewable energy
A recent opinion piece published by the Woodrow Wilson School of Princeton University sees putting a price on carbon as only way to "nurture the rapid growth of renewable energy and reducing emissions."
In a great opinion piece published by the Woodrow Wilson School of Princeton University, the authors describe setting a price on carbon as the best way to curb emissions and drive development of renewable energy.
“The current price of carbon – which is below zero, once fossil-fuel subsidies are taken into account – is far too low given the hidden environmental, health and societal costs of burning coal and oil.” so “literally putting a price on carbon pollution and other greenhouse gasses is the best approach for nurturing the rapid growth of renewable energy and reducing emissions. –
Taking into account that fact that renewables are often not competitive on price alone and not even touching upon the existing or perceived fossil-fuel subsidies, the fact that the cost of carbon emissions is neglected in any policy or economic evaluation is of great concern.
For a company in the Philippines quoting a coal-project being cheaper than a geothermal project as key argument not to pursue the latter, showcases clearly that the future cost of the emissions from a coal plant to the economy and a nation as a whole is not sufficiently taken into consideration.
Putting a price on carbon emissions not only levels the playing field, but takes into account the real cost of fossil-fuel based electricity generation. (… and heat applications as well)
Source: Princeton University