CESA Presents Webinar on Carbon Tax as a Strategy for Achieving 100% Clean Energy
The Clean Energy States Alliance (CESA) hosted a webinar on Wednesday, November 18, on "Should a Carbon Tax Be Part of the Strategy for Achieving 100% Clean Energy?" CESA is a national, nonprofit coalition of public agencies and organizations working towards the advancement of clean energy practices.
Warren Leon, Executive Director of Clean Energy States Alliance, was the moderator of the webinar that included Gilbert Metcalf, the John DiBiaggio Professor of Citizenship and Public Service and Professor of Economics at Tufts University. Metcalf explained why economists believe a carbon tax is an efficient mechanism for addressing climate change and how it can contribute to economic growth while reducing greenhouse gas emissions.
The best strategy for a cost-effective way to reduce emissions, Metcalf stated, is by means of regulation, with the least expensive way to reduce emissions by a given amount being the regulation of businesses. But he noted that there are political risks that come with regulation. An alternate option that he cited is to employ subsidies for clean energy since subsidies lower the overall energy price and price emissions. Metcalf explained that a popular approach to developing a carbon tax is called intensity standards, where "policies mandate a certain minimum percentage of a given input combine a subsidy on the favored input and a tax on the disfavored input."
There are different strategies and plans that can achieve 100% clean energy but each route comes with a cost. Some key factors that will go into the development of this carbon tax. Metcalf explained, are that there will need to be major investments in "storage technologies, new zero-carbon technologies, climate resilience investments, regulations for hard to tax sectors, and bringing down barriers to interstate transmission lines and other network barriers".
Metcalf also noted that the Biden administration is expected to move aggressively to address climate change. Carbon pricing does have some bipartisan support, but the longer the country waits, the more expensive it will be to decarbonize the economy and achieve 100% clean energy goals.
To listen to the recording of this webinar, click here.
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