Brendan Frank retweetledi
This is a remarkable finding, especially the latter number: 70 Mt in emissions reductions, just in Alberta! For reference, the two policies higher carbon pricing would replace, the oil and gas emissions cap and the clean electricity regulations, would each reduce emissions about 7 Mt annually, or about 14 Mt combined.
And they would do so at much greater cost. At $130 per tonne, up from about $20 currently, the 70 Mt to be taken out by carbon pricing would cost about $7.7 billion, net. By contrast, the emissions cap is estimated to cost about $800 per tonne (I'm just using compliance costs here, rather than including much larger economic losses, for comparability), while the CER's is about $220, for a total cost of about $7.1 billion.
So we get five times the reductions for about the same total cost. Include economic losses, and carbon pricing works out to being about half as expensive — again, for five times the reductions.
Andrew Coyne 🇺🇦🇮🇱🇬🇪🇲🇩@acoyne
"We calculate that credit prices in the range of $130 to $150 per tonne could unlock over $90 billion in low-carbon capital investment and reduce over 70 megatonnes of emissions annually." cleanprosperity.ca/wp-content/upl…
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