High oil and gas prices are giving an unappealing taste of what a global carbon price might be like.
Gas-pump prices reaching $5 a gallon are just the most visible example of the rising cost of using fossil fuels. The war in Ukraine and subsequent worries over shortages have had the knock-on effect of increasing the price of emissions, much like a global carbon price would. Such a tax on pollution has long been an economist’s dream, but the recent squeeze on consumer incomes highlights why it can also be a politician’s nightmare.
