Ecofys explores relationship between higher emissions reductions and..
Ecofys explores relationship between higher emissions reductions and stakeholder acceptability of carbon pricing
Today at COP23 in Bonn, Ecofys, a Navigant company, presented initial findings from an ongoing study on the relationship between stakeholder perceptions of carbon pricing and the way that revenue is recycled. Combining a desk-based research with a survey of end-users’ perceptions, the energy and climate experts found that revenues are an important element determining stakeholder support for carbon pricing mechanisms, i.e. carbon taxes and emissions trading systems. High acceptability of the way that carbon revenues are spent and the resulting emission reduction effects are crucial for the overall acceptability and sustainability of a carbon pricing mechanism. Companies prefer revenue uses which offer a direct financial benefit for them, but policymakers need to consider carefully how benefits for companies and emission reduction effects interact.
Revenues from carbon pricing mechanisms have grown substantially in recent years rising from US$16 billion in 2014 to US$22 billion in 2016. The relevance of carbon revenues will increase further as new mechanisms are implemented, scopes are expanding and carbon prices are rising. The study is part of the Carbon Pricing Unlocked research partnership of Ecofys and The Generation Foundation.
Download the briefing note with initial findings.Learn more about Ecofys expertise at COP 23 here.
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