Reference no: EM133194293 , Length: Word count: 1500 words
Assignment Task:
Market-driven regulation: Are carbon pricing and disclosure of climate-related financial risk the solution?
As you answer this question, you should:
1. Contextualize this approach within the broader policy-making process.
2. Identify the interests that are for and against this approach, and why they support or oppose it.
3. Identify and explain the central idea(s) this approach advances as important to understanding the policy process and the energy transition.
4. Identify the institutions best serve this combination of interests and ideas.
5. Provide real-world examples illustrating how these interests, ideas and institutions play out in policy and political debates.
Energy Policy and Environment - Essay Outline
Driving question: Are carbon pricing and disclosure of climate-related financial risk the solution?
I. Introduction
a. Background of carbon pricing
b. Background of disclosure of climate-related financial risk
II. Central goal of carbon pricing
a. Neoliberalist idea
b. Corrects for market failures
c. Two methods: cap-and-trade and the carbon tax
III. Arguments in favor of carbon pricing
a. Drives broad and low cost reductions in carbon
b. Works through the open market
c. Incentivizes innovation
IV. Arguments against carbon pricing
a. Does not provide certainty in the amount of reductions
b. Monopolies can negatively impact their success
c. Demand elasticity
V. Conclusion
References:
Kathryn Harrison (July 8, 2019). "The fleeting Canadian harmony over carbon pricing". Policy Options.
Mark Carney (29 September 2015). "Breaking the Tragedy of the Horizon - climate change and financial stability." Speech.
Market-driven regulation: Are carbon pricing and disclosure of climate- related financial risk the solution?