Special report | On the other hand...
The many prices of carbon dioxide
Not all tonnes are created equal
Ask an economist what something scarce should cost and they will normally say whatever someone is willing to pay for it. They will go on to say that the best way to establish that willingness is through markets. There are various systems that price carbon dioxide that way. But they do not provide the same answers. And nor do they tally with what economists think might actually be the right answer.
This article appeared in the Special report section of the print edition under the headline “The many prices of carbon dioxide ”