Aggregate Demand and Supply

An interesting opinion piece in today's Guardian arguing that there should be a far higher global carbon price to avoid apocalyptic rises in temperature.

And certainly there's a good point here in that most carbon pricing mechanisms were established prior to the global financial crisis and, consequently, the price of carbon is low, relative to what people thought it would be by 2018. Similarly, it seems that coal-fired power has remained a major part of the energy mix, notably in developing economies, but also in Germany too.

Thus, a higher carbon price would reduce coal's appeal. However, how what's the economics behind the 30 euros per kg price? This isn't touched upon, and that leaves a number of questions unanswered. 

Guardian squared.

The Guardian celebrates the fact that the UK has passed 1,000 hours without any electricity being coal fired. I imagine that this is a major cause of celebration in Guardian Towers. Of course, it's also good news for the environment and represents a major shift in the pattern of electricity generation, and another indicator of the power of markets.