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The Cost of Cutting Carbon

Will putting a price on carbon increase the use of renewables?

If the goal is to increase the use of renewable energy, says Sergey Paltsev, principal research scientist at the MIT joint program, governments may have to mandate its use. Unfortunately, that would increase energy costs much more than market-based approaches to carbon regulation would.

1Based on average 2007 prices 2For electrical utilities 3All blends
Source: Energy Information Administration/Gilbert Metcalf (prices); MIT Joint Program on the Science and Policy of Global Change (power sources)
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