DMost economists agree that putting a price on carbon emissions is the best way to combat climate change. A price – like all prices – is efficient and fair because those who burden the climate also pay for it. If that is too expensive for you, you can think about how you can live and do business in a more climate-friendly and cost-effective way. A transformation of the fossil world via price can be regulated with a CO₂ tax or with emissions trading.
But the CO₂ price is having a hard time. It’s counterintuitive and complicated. Only the economists consider it simple and elegant. People cannot see any connection between higher fuel prices and the achievement of climate targets. Politicians who campaigned during the pandemic with the principle “Follow the science!” are listening to economists on climate policy, but are not taking their advice.
