New Climate Policy

Welcome to the policy theory page.

To get you started, we recommend that you read the introduction to balanced growth in carbon on the GCR Homepage. Balanced growth in carbon is proposed as a better alternative to dirty growth, green growth, and de-growth.

To better understand the mechanics of balanced growth in carbon, you may wish to read the new Pricing Theory for the market failure in carbon (i.e. the hypothesis). This new pricing theory includes a concept called “carrot and stick” carbon pricing. More formally, carrot and stick carbon pricing is understood through a relational diagram, called the carbon pricing matrix. The new pricing theory is important because it describes costs and risks, and their differences. The theory supports the Global Carbon Reward (GCR) policy, and it focuses on a need to understand and manage the upstream systemic risk that is associated with the economy and civilisation’s unsustainable growth trajectory.

If the new pricing theory has grabbed your interest, then you may want to dig deeper into the financial mechanism that is recommended to fund the carbon reward. This financial mechanism employs a new monetary policy, called carbon quantitative easing (carbon-QE). Experts in economics and policy have not yet taken a serious look at the GCR policy and carbon-QE. However, a few experts have provided their initial comments in interviews with Yale’s Pricing Nature podcast. Dr Delton Chen — the founder of the GCR Project — has responded to the podcast with an open letter.

KSQD, a community radio station based in California, is hosting a series of interviews (October-November 2022) to examine the above issues more carefully. You might want to listen in, or if you are not too far from Santa Cruz, then please consider joining a public forum that will be held in Santa Cruz on November 2, 2022.

Finally, if you would like to see a formal description of the new carbon pricing theory — including the idea of a ‘systemic externality’ to complement the negative externality caused by carbon emissions (i.e. the social cost of carbon) — then download and read the GCR Working Paper. The appendix to this working paper provides a concise summary of the new conceptual model for the market failure.

Updated 14 February 2024
Note that ‘optimal growth’ has been replaced with ‘balanced growth in carbon’ for reasons of clarity.


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