This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Journal: Economic Policy
  4. November 2024
  5. Pricing Carbon: Evidence from Expert Recommendations

American Economic Journal:
Economic Policy

ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)

Pricing Carbon: Evidence from Expert Recommendations

  • Moritz A. Drupp
  • Frikk Nesje
  • Robert C. Schmidt
American Economic Journal: Economic Policy
vol. 16, no. 4, November 2024
(pp. 68–99)
Download Full Text PDF

Abstract

We study the variation of carbon price recommendations and their determinants using survey evidence from more than 400 experts across almost 40 countries. We quantify the extent of disagreement and reveal that a majority of experts can agree on short- and medium-term global carbon price levels, and on unilateral carbon price levels in most countries. The majority of recommendations do not exhibit a "free riding" pattern of lower unilateral than global carbon prices. Furthermore, border carbon adjustment facilitates higher unilateral price recommendations. We show how recommendations vary with additional survey responses, and with country and expert characteristics.

Citation

Drupp, Moritz A., Frikk Nesje, and Robert C. Schmidt. 2024. "Pricing Carbon: Evidence from Expert Recommendations." American Economic Journal: Economic Policy, 16 (4): 68–99. DOI: 10.1257/pol.20220571

Additional Materials

JEL Classification

  • H43 Project Evaluation; Social Discount Rate
  • Q54 Climate; Natural Disasters and Their Management; Global Warming
  • Q58 Environmental Economics: Government Policy
There are no comments for this article.
Login to Comment