Thursday, August 13, 2009

Part III: Revenues from Cap and Trade (Floor Price = $10)

The revenues from cap and trade can be estimated in a straightforward manner by estimating the area of the shaded rectangle in the figure below.
The price increase per household is $73.5 per year, and there are 110M households in the country, leading to $8.5B/year. This calculation is for carbon emissions from electricity only. The total size of the carbon markets can be estimated as ~6B Tons of CO2 at $10 being ~$60B in the early stages.

No comments:

Post a Comment