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Internalising pollution externalities with a carbon price: a simplified visual guide. Martin C. Jones. When you purchase products whose production causes greenhouse gas emissions, that damages the environment, which affects everybody (not just the purchaser).
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Internalising pollution externalities with a carbon price: a simplified visual guide Martin C. Jones The views expressed in this presentation are the author's personal opinion and are not intended to represent those of his employer or any third party .
When you purchase products whose production causes greenhouse gas emissions, that damages the environment, which affects everybody (not just the purchaser).
But these environmental costs aren’t reflected in the prices of the products... Cost Damage Price
...making them seem cheaper than less polluting alternatives. Cost Damage Damage vs. Price Price
A price on pollution, via a “carbon tax” or emissions trading scheme... Cost Damage Price
...would slowly raise the price of products... Cost Damage Damage Carbon Price Price Price
...to reflect their true cost. Cost Damage Damage Carbon Price Carbon Price Price Price Price
This will make buying less polluting products and reducing emissions more attractive, encouraging people and companies to change their behaviour. Cost Damage Carbon Price Carbon Price vs. Price Price Price
Before a Carbon Price After a Carbon Price Dirty energy product Clean energy product Clean energy product Dirty energy product Cheaper option Carbon Price Cheaper option Price Price Price Price
And because the revenue is returned as compensation... Cost Compensation Carbon Price Carbon Price Price Price
...most people will be better off monetarily... Cost Compensation Carbon Price Carbon Price Price Price
...and everyone will benefit from reducing the effects of climate change.
