Why are carbon offsets priced so low?



  • I've seen a lot of articles and studies that attempt to assess the "true cost of carbon". Although they may come up with wildly different numbers, one thing that seems to be consistently true is that the estimates are much higher than the price of buying carbon offsets.

    But when I look at the current pricing of carbon offsets, such as from this Canadian company I see prices like USD$15-18. How can these offset companies be running so efficiently? Can these prices be realized at a global scale and enduring over time?



  • @nicwaller I think the problem boils down to the fact that estimating the cost of an economic externality is really hard. Yes there's methodologies for doing it but our approaches are still quite empirical. We're in the early stages of trying to price carbon so hopefully standards improve and become more... standard


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