Why It's So Hard to Put a Price on Carbon

In the past decade, the phrase “put a price on carbon” has gathered steam around the globe. And carbon pricing has been hailed by scientists, economists, and business leaders as one of the most cost-effective tools to decarbonize economies. But the exact price—typically expressed in terms of value (e.g. dollars or other local currency) per metric ton of carbon dioxide equivalent—varies, depending on the jurisdiction, the policies in place, and the pricing instrument. In other words, this is not a one-price-fits-all situation.