Dr. Michael Greenstone: Decoding the social cost of carbon and the carbon offset market

Dr. Michael Greenstone: Decoding the social cost of carbon and the carbon offset market

In this episode, Chris and Georges do a deep dive into the economic implications of carbon emissions with one of the world’s leading climate finance experts, Dr. Michael Greenstone. As a former chief economist for President Obama's Council of Economic Advisers, Dr. Greenstone played a pivotal role in developing the "social cost of carbon." The trio discusses the significance of understanding the economic cost of carbon emissions and the tools policymakers have at their disposal to combat climate change.

Guest

Dr. Michael Greenstone, Milton Friedman Distinguished Service Professor in Economics

Background

Michael Greenstone is the Milton Friedman Distinguished Service Professor in Economics as well as the Director of the Becker Friedman Institute and the interdisciplinary Energy Policy Institute at the University of Chicago. As a co-director of the Climate Impact Lab, he is producing empirically grounded estimates of the local and global impacts of climate change. He is also the co-director of the King Climate Action Initiative at the Abdul Latif Jameel Poverty Action Lab, and co-founder of Climate Vault, a 501(c)(3) that uses markets to allow institutions and people to reduce their carbon footprint.

Conversation

• Sheds light on the concept of the social cost of carbon, its current applications, and the overarching importance of carbon pricing in shaping future climate policies, especially in the United States.
• Touches upon the controversial topic of carbon offsets, distinguishing between the voluntary offset market and regulated cap and trade permitting systems.
• Introduces Climate Vault, a non-profit startup co-founded by Dr. Greenstone that not only allows entities to offset emissions using regulated permits but also aids in purchasing carbon removal, thereby supporting emerging carbon removal companies to scale their technologies.