Energy Collective: While a carbon price is every economists' favorite climate plan, real-world political constraints get in the way (just ask Australia!)
In a new paper in Energy Policy, I examine a variety of political economy constraints that limit the environmental efficacy and economic efficiency of real-world carbon pricing policies.
Households in the United States appear willing to pay just $80-200 per year to combat climate change, equivalent to a carbon tax of roughly $2-8 per ton. In contrast, estimates...