New Meta-Study Confirms The Effectiveness Of Carbon Pricing

New Meta-Study Confirms The Effectiveness Of Carbon Pricing - Carbon Herald
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A study led by the climate research institute MCC in Berlin found that carbon pricing systems contributed to a reduction in emissions ranging from 5% to 21% during their initial years of implementation. 

The research team found this effect in 17 climate policies worldwide, providing a more comprehensive overview of the impact of these measures than ever before.

The team, which authored the study published in the journal Nature Communications, utilized artificial intelligence to compile existing surveys in a manner that allowed for comparison through a unique calculation method.

Relevant: New Carbon Pricing Tool Helps Organizations Find The Cost Of Emitting CO2

The meta-study began with a question similar to that of a laboratory experiment: how did emissions change following the implementation of carbon pricing, in comparison to a hypothetical business-as-usual scenario?

A keyword search in various literature databases led the team to nearly 17,000 potentially relevant studies, which were narrowed down to 80 specific ones through the use of machine learning techniques focused on relevance.

Among these studies were 35 focusing on pilot systems in China, 13 on EU emissions trading, and 7 each on larger pilot systems in British Columbia, Canada, and the “Regional Greenhouse Gas Initiative” in the U.S. Additionally, there were studies on similar systems in Australia, Canada, Finland, Japan, Sweden, Switzerland, South Korea, the UK, and the U.S.

Read more: Carbon Pricing In EU Hits A Record High

The calculation method, made publicly available by the research team, led to empirical data indicating that the implementation of carbon pricing in certain Chinese provinces has significantly impacted emissions. 

Specifically, the results show that the emissions balance is notably affected by a proactive policy approach (known as the “announcement effect”) and a favorable environment with low CO2 avoidance costs.

In contrast, the research team suggests that the debate over whether carbon pricing is executed through emissions trading or a tax is less critical in their findings than it is in political discussions.

The meta-study also underscores the necessity for more empirical research on this subject.

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