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MIT Center for Energy and Environmental Policy Research
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Least-cost electrification plans have become more sophisticated. This working paper proposes an integrated
regulatory–financial framework. Universal access becomes bankable when planning, regulation and financing are integrated.
ceepr.link/4lc8Ysm
How CBAM recognizes carbon prices paid abroad will shape its effectiveness against leakage and catalyze carbon pricing abroad. Since CBAM is not meant to be a revenue-raising tool, it can make sense to let trade partners close the EU ETS price gap and retain revenues at home.
While the authors examine only a subset of climate-related impacts, the evidence suggests that recent climate change now imposes an average cost between $400 and $900 per household annually depending on attribution assumptions, with the hardest-hit counties exceeding $1,300 per household.
MIT Center for Energy and Environmental Policy Research
