Helm Talks - energy climate infrastructure & more Carbon pricing and carbon taxes - an essential part of a net zero strategy
Oct 9, 2020
Dieter Helm, Professor of Economic Policy at Oxford and an authority on energy, climate and infrastructure, argues carbon pricing is essential for net zero. He explains why a carbon tax outperforms trading schemes. Talks cover border adjustments, hidden subsidies, distributional compensation, and a practical rollout that unifies prices across sectors.
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Carbon Price Is Fundamental To Efficiency
- A proper carbon price is essential to an efficient, sustainable economy and to achieving net zero by 2050.
- Dieter Helm argues prices must internalise emissions so consumers see true costs instead of hidden subsidies and fragmented interventions.
Hidden Costs Exceed Visible Carbon Taxes
- Without an explicit carbon price, decarbonisation proceeds via costly, hidden subsidies and regulatory support across sectors.
- Helm found legacy interventions already added roughly £200 of a £1,000 household energy bill in his cost of energy review.
Be Honest About Transition Costs
- Tell the public the true costs and commit credibly rather than hiding them, because voters will face higher costs otherwise.
- Helm advises governments to be honest about the transition price and use compensation where needed to retain support.