The case for carbon pricing LSE Home（碳定价证交所回家）.pdf

The case for carbon pricing Alex Bowen Policy brief December 2011 The Grantham Research Institute in Climate Change and the Environment was established in 2008 at the London School of Economics and Political Science. The Institute brings together international expertise on economics, as well as finance, geography, the environment, international development and political economy to establish a world- leading centre for policy-relevant research, teaching and training in climate change and the environment. It is funded by the Grantham Foundation for the Protection of the Environment, which also funds the Grantham Institute for Climate Change at Imperial College London. More information about the Grantham Research Institute can be found at www.lse.ac.uk/grantham The Centre for Climate Change Economics and Policy was established in 2008 to advance public and private action on climate change through rigorous, innovative research. The Centre is hosted jointly by the University of Leeds and the London School of Economics and Political Science. It is funded by the UK Economic and Social Research Council and Munich Re. More information about the Centre can be found at: www.cccep.ac.uk Contents Contents Executive summary 2 1. Introduction 3 2. The analytical case for carbon pricing 4 3. The challenge of deciding on the correct price