Please find below the
Proposal:Correct the whole market not just carbon
Contest: U.S. Carbon Price
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2015 Climate CoLab Judges
This proposal suggests an insurance premium be paid by producers of products
in proportion to the risk that the products end up as "waste." To the extent that the waste is GHG emissions, then this makes some sense. To the extent that waste is something else, it is not clear what risks exactly the premium is meant to price. In principle, if there are environmental costs
associated with landfills, air pollution, etc., then those impacts could be priced.
The problem is that a producer had no information about or control over the range of ways in which consumers use or dispose of their products. It is difficult to see how you would avoid double counting. Should the glass manufacturer, the soda manufacturer, the distributor, or the retailer be responsible? And how does one set the fee? On a ton basis? It would also be good to see how insurers would fit into this system. Finally, it would be hard to see Congress passing such a policy.
This proposal is a great conceptual piece, but would benefit from more specificity.
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