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Abstract:
Operationalizing a Global Carbon Observing and Analysis System (www.geocarbon.
net) would provide a sound basis for monitoring actual carbon fluxes and thus
getting quantities right when pricing carbon – be it in a cap-and-trade scheme or under
a tax regime. However, such monitoring systems are expensive and—especially in
times of economic weakness—budgets for science and environmental policy are under
particular scrutiny. In this study, we attempt to demonstrate the magnitude of benefits
of improved information about actual carbon fluxes. Such information enables betterinformed
policy-making and thus paves the way for a more secure investment environment
when decarbonizing the energy sector. The numerical results provide a robust
indication of a positive social value of improving carbon monitoring systems when
compared to their cost, especially for the more ambitious climate policies.
