Why have nearly all attempts to price carbon failed, while targeted policies to achieve certain objectives, like phase out coal plants or increase wind and solar generation, succeeded? And how can we design climate policies that are truly effective?
In their new book, Making Climate Policy Work, Danny Cullenward and David Victor argue that policymakers and policy advocates rely too heavily on market forces to combat climate change, and instead should be focusing on smart, targeted industrial policy strategies aimed specifically at reducing greenhouse gases. Market-based climate policies are doing very little to reduce emissions today, they say, but with careful reforms, markets can be harnessed to help us make meaningful progress against the climate challenge.
In this episode we speak with one of the authors and try to distill a recipe for good climate policy from their book.