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Economics of Carbon Pricing

Jennifer Peck,

Professor of Economics and Environmental Studies

Swarthmore College


Professor Peck will help us explore the economics of carbon pricing. The discussion will include what different carbon pricing models exist, the economic and environmental impacts that those policies would have, and what factors into the social cost of carbon number used in those systems.

Cap-and-Trade, Fee-and-Dividend, or something else? Understanding the different models of carbon pricing will help us understand the array of options for national policies, and also how to start thinking about developing proposals that work on our own campuses.

Beyond simply understanding the rules a policy puts in place, to really help us learn what it means to implement it, we will look at the modeled impacts they would have for the United States, and what impacts carbon pricing policies have already had for other nations.

The social cost of carbon is a central figure in designing any carbon pricing system, whether at the national or campus level. The social cost of carbon figure will determine how much to levy with an internal fee mechanism and how to weight carbon emissions in institutional decision-making with a shadow price. Learning how to make a strong case for your proposed social cost of carbon will be necessary to get institutional consensus on a figure that will have a strong impact.


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