Out of the Shadows: What's Behind DEFRA's New Approach to the Price of Carbon?
Commissioned by Friends of the Earth England, Wales and Northern Ireland.Author(s): Stanton, E.A. ; Ackerman, F.
Research Area(s): Climate EconomicsDescription: In 2007, the UK's Department for Environment Food and Rural Affairs (DEFRA) established a shadow price for carbon emissions for internal decision making; the shaky foundations of that shadow price are the subject of this critique. This report addresses logical, technical, and ethical issues to show that the DEFRA methodology is fundamentally flawed. The conclusion sets out policy recommendations, including a brief description of a different methodology that could be used to develop an ethical and efficient UK carbon price.