Rapidly rising climate anomalies have convinced more and more people that the only way to curb the temperature increases and their consequent economic and ecological disasters is to implement policies that aggressively eliminate carbon emissions. Figures 1 and 2 show the media report on climate since January 1, 2021. As we can see, there was intensive coverage on the Earth Day Climate Summit on April 22, 2021. At the Summit, President Biden pledged that the U.S. would cut carbon emissions by 50-52% by 2030 compared to 2005 – more ambitious than President Obama’s pledge in 2015, a 25-28% reduction by 2025.
In this brief, we look into the economics behind carbon pricing and shed light on some carbon policy issues in the U.S.
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