Carbon Pricing Is Dead. Long Live Carbon Pricing!, with Danny Richter

·32 min·3 clips

Economists call carbon pricing the most cost-effective policy, yet it's out of favor federally in the U.S.—so why is it thriving worldwide?

The episode begins with host Kristen Hayes introducing Danny Richter and the topic of carbon pricing, noting its economic efficiency but political challenges in the U.S. Richter shares his background as an oceanographer turned carbon pricing advocate through Citizens Climate Lobby, where he helped pass a bipartisan bill with 96 co-sponsors. He outlines the global landscape, revealing that 24% of emissions are covered by carbon pricing and that every other developed economy has one. Richter discusses the longevity of programs, citing 35-year-old examples, and notes they tend to stay in place once passed. The conversation shifts to U.S. states, where 14 have carbon pricing, mostly cap-and-trade, which Richter speculates appeals to politicians due to flexibility and avoidance of direct taxation. Hayes brings up the rebranding to 'cap and invest,' and Richter illustrates its impact with Washington state's experience, where emphasizing investments flipped conservative county votes by 40-45%. Internationally, Richter describes how carbon pricing is often paired with other policies, like the EU's emissions trading system, and highlights the World Bank's Carbon Pricing Dashboard as a resource. He delves into carbon border adjustment mechanisms (CBAMs), explaining they level the playing field for domestic producers and inspire global action. Richter introduces his framework of carbon pricing generations, labeling current federal discussions as 'fourth-generation' policies that are border-forward, sectoral, and intensity-based. The episode closes with Richter recommending Kenneth Rogoff's book 'Our Dollar, Your Problem,' linking the U.S. lack of carbon pricing to its reserve currency status.

As heard by us

A clear look at how carbon pricing persists through political rebranding.

Resources Radio treats carbon pricing as a political and rhetorical question as much as a policy one, moving from the federal U.S. retreat to the broader mix of cap-and-trade and carbon tax experiments still in use around the world.

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Why you'd press play

If carbon pricing sounds tired, this conversation shows why the label keeps changing.

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