Ethics and Political Philosophy Commons^™

Emission Permits As A Monetary Policy Tool: Is It Feasible? Is It Ethical?, Tracey Mccowen

Graduate College Dissertations and Theses

The price of emission permits is deemed too low to mitigate climate change. In three studies, policy approaches to pricing carbon in a market setting are examined. First, the emission permit market is analyzed comparatively to how the ethanol mandate impacted prices in the corn market. This leads to the realization that the marketization of carbon is more like a currency than a physical commodity. The next study examines emission permits as a monetary policy tool. Emissions correlate GDP output, thus central banks can use emission permits as forward guidance, as a means to optimize the price for climate change …