PRICE LEVELS IN THE GREEN ECONOMY AND THEIR APPLICATION
Abstract
The transition to a green economy necessitates a comprehensive understanding of price levels and their applications to effectively balance economic growth with environmental sustainability. This article explores the mechanisms of carbon pricing, including carbon taxes and emissions trading systems, and their roles in internalising environmental externalities. The article goes on to examine the economic implications of these pricing strategies, including potential inflationary effects and the need for substantial investments estimated at an additional $3.5 trillion annually to achieve net-zero emissions by 2050. The discussion also highlights the importance of aligning prices, subsidies, and incentives with true societal costs to promote sustainable development. By analysing these factors, the article provides insights into how price levels can be strategically applied to facilitate the green transition.
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