TY - JOUR

T1 - Pricing carbon: Evidence from expert recommendations

AU - Drupp, Moritz A.

AU - Nesje, Frikk

AU - Schmidt, Robert C.

PY - 2024

Y1 - 2024

N2 - We study the variation of carbon price recommendations and their determinants using survey evidence from more than 400 experts across almost 40 countries. We quantify the extent of disagreement and reveal that a majority of experts can agree on short- and medium-term global carbon price levels, and on unilateral carbon price levels in most countries. The majority of recommendations do not exhibit a “free-riding” pattern of lower unilateral than global carbon prices. Furthermore, border carbon adjustment facilitates higher unilateral price recommendations. We show how recommendations vary with additional survey responses, and with country and expert characteristics.

AB - We study the variation of carbon price recommendations and their determinants using survey evidence from more than 400 experts across almost 40 countries. We quantify the extent of disagreement and reveal that a majority of experts can agree on short- and medium-term global carbon price levels, and on unilateral carbon price levels in most countries. The majority of recommendations do not exhibit a “free-riding” pattern of lower unilateral than global carbon prices. Furthermore, border carbon adjustment facilitates higher unilateral price recommendations. We show how recommendations vary with additional survey responses, and with country and expert characteristics.

M3 - Journal article

JO - American Economic Journal: Economic Policy

JF - American Economic Journal: Economic Policy

SN - 1945-7731

ER -