Carbon Pricing Ethics: Evaluating Moral Implications of Monetary Charges on Carbon Emissions
In a bold move to combat climate change, Cass Sunstein, a renowned legal scholar and former administrator of the White House Office of Information and Regulatory Affairs (OIRA), has long advocated for the pricing of carbon as a critical tool. Sunstein, who served as the OIRA administrator under President Barack Obama, believes that establishing an agreed price for a tonne of carbon is essential for reflecting the social cost of greenhouse gas (GHG) emissions in policy assessments.
During his tenure at OIRA, Sunstein led efforts to change government regulations to acknowledge global warming and minimize its harm. In 2009, Obama appointed Sunstein as the administrator of OIRA, where he worked to make these changes consistent across the government by assessing policies affecting GHG emissions on the basis of an agreed price for a tonne of carbon.
Sunstein's framework involves considering whose interests should be factored into calculating the cost of carbon, and he argues that these assessments should be informed by complex estimates of climate impacts, including effects on temperatures, extreme weather, rainfall, sea levels, and overall planetary liveability. His narrative is consistent with a broader moral and practical argument for climate justice, advocating that both domestic and international responsibilities be considered in climate policy, especially regarding the distribution of costs and benefits.
Sunstein's views on carbon pricing are grounded in the belief that, to tackle global warming effectively, government regulations—such as those affecting coal-fired power stations or subsidizing electric vehicles—must be evaluated with a clear, consistent carbon price. This allows the true costs of climate change to be integrated into cost-benefit analyses, driving policy decisions that minimize harm to society and the environment.
Sunstein, co-author of the widely acclaimed bestseller "Nudge" with Nobel laureate economist Richard Thaler, argues that the US should set a carbon price that reflects the net costs emissions impose on everyone they affect or will affect, now and in the future. He aligns his views with the utilitarianism of John Stuart Mill and the golden rule of Jesus of Nazareth, asserting that it is in our own strategic interests to care for others, as the world needs to solve the climate problem, and each country should consider the interests of people who live in other countries.
Sunstein further believes that justice requires wealthy countries to compensate the poor for the damage that climate change causes them. His stance remains that pricing carbon is both an ethical and practical necessity for combating climate change, ensuring that environmental harms are accounted for in policymaking and that global, as well as national, interests are considered in the process.
However, recent developments have cast doubt on the continued emphasis on carbon pricing. Jeffrey B. Clark, the acting administrator of OIRA, recently issued a memo stating that it is no longer federal government policy to maintain a uniform estimate of the monetized impacts of greenhouse gas emissions. Clark's memo refers to "supposed changes in the climate" and doubts about whether human GHG emissions are contributing to those changes, a stance that disregards the views of the vast majority of climate scientists as expressed in the reports of the Intergovernmental Panel on Climate Change.
As the world grapples with the challenges of climate change, Sunstein's advocacy for carbon pricing continues to resonate, offering a path towards a more sustainable future that considers the needs of all people and the planet.
[1] Sunstein, C. R. (2017). Climate Justice: What Rich Nations Owe the World - and the Future. Cambridge University Press. [2] Sunstein, C. R. (2017). The Cost of Carbon: A Conversation with Cass Sunstein. Environmental and Energy Law & Policy Journal, 37(1), 1-22.
- Sunstein's book, "Climate Justice: What Rich Nations Owe the World - and the Future," published in 2017, offers a comprehensive view on the carbon pricing as a tool for international climate policy.
- In his work, Sunstein discusses the need for considering biodiversity loss and medical-conditions exacerbated by climate change while evaluating the cost of carbon.
- He argues that corporate responsibility towards climate change mitigation should factor in the social cost of carbon, aligning with the principles of education-and-self-development and personal-finance for future generations.
- Sunstein's climate change advocacy extends to the realm of investing and business, suggesting that sustainable and low-carbon initiatives may present viable opportunities for climate-change-conscious investors.
- According to Sunstein, establishing a carbon price can drive lifestyle changes and technological advancements, making it a crucial intervention in the battle against climate change.
- His views on carbon pricing are grounded in the principles of science and environmental-science, emphasizing the need for policymakers to base their decisions on sound data about climate change impacts.
- In the general-news and entertainment sectors, Sunstein's thoughts on carbon pricing have sparked debates about the role of government and individual responsibility in addressing climate change.
- In sports, some organizations have adopted Sunstein's recommendations, implementing carbon reduction strategies in their operations and events, demonstrating the broad applicability of his ideas.
- Despite recent misgivings regarding carbon pricing from some policy circles, Sunstein's arguments continue to hold weight, as he persists in advocating for a comprehensive, fair, and effective approach to combat climate change.
