Hammerschlag
& Co.
LLC
Setting the CRIF Carbon Price
10 November 2016
Project Evaluation Tool
slide 2
www.hammerschlag.co
Source: 1. Interagency Working Group on Social Cost of Greenhouse Gases, “Technical
Support Document: Technical Update of the Social Cost of Carbon for Regulatory Impact
Analysis Under Executive Order 12866” (United States Office of Management and Budget,
August 2016), https://www.whitehouse.gov/omb/oira/social-cost-of-carbon.
SC-CO2 Technical Support Document
slide 3
www.hammerschlag.co
Source: 1. Interagency Working Group on Social Cost of Greenhouse Gases, “Technical
Support Document: Technical Update of the Social Cost of Carbon for Regulatory Impact
Analysis Under Executive Order 12866” (United States Office of Management and Budget,
August 2016), https://www.whitehouse.gov/omb/oira/social-cost-of-carbon.
SC-CO2 Technical Support Document
slide 4
www.hammerschlag.co
Source: World Bank Group, “Carbon Pricing Watch 2016,” accessed November 9, 2016,
https://openknowledge.worldbank.org/handle/10986/24288.
Market Prices
slide 5
www.hammerschlag.co
Source: World Bank Group, “Carbon Pricing Watch 2016,” accessed November 9, 2016,
https://openknowledge.worldbank.org/handle/10986/24288.
Market Prices
slide 6
Path Forward
1. Anchor to:
a.
market price,
b. regulatory price, or
c.
estimated social cost?
2. Choose specific anchor (BC tax?
SC-CO2 @ 3%/yr? etc.)
4. Agree on CRIF advance horizon
(15 years?)
5. Agree on CRIF advance
discounting, if any
6. Set policy re municipality freedom
to adopt or alter recommended
price
3. Single value (e.g. 2020) or
continuous series (e.g. follow
market)?
www.hammerschlag.co
slide 7