The Dilemma of Pricing CO2

CO2 pricing aims to internalize the external costs of CO2 emissions, thereby encouraging businesses and individuals to reduce their “carbon footprint”.

The concept is straightforward: by assigning a cost to CO2 emissions, it becomes financially advantageous to emit less CO2. However, this simplistic view overlooks significant complexities and unintended consequences.

Our entire existence is based on taking things from nature (“renewable” or not), so the “Net-Zero” discussion ignores a fundamental requirement of our survival. I agree that it should be our aim to reduce the environmental footprint as much as possible but only as long as our lives, health, and wealth don’t deteriorate as a result.

Now, I am sure, some readers and many “activists” may disagree, which I respect but find unrealistic at a global level. However, I would assume that most agree that no-one’s life ought to be harmed or shortened for the sake of reducing the environmental impact made. Otherwise, there is little room for a conversation