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Out of the Shadows: What’s Behind DEFRA’s New Approach to the Price of Carbon?
This report by the Stockholm Environment Institute critiques the UK Department for Environment, Food and Rural Affairs (DEFRA) for its 2007 approach to setting the shadow price of carbon (SPC). The authors argue that DEFRA's methodology is fundamentally flawed because it bases the carbon price on an assumed optimistic future stabilization trajectory rather than current emissions trends, resulting in a price that is too low to incentivize necessary abatement.
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Document type: Report
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