The True Price of CO₂

In 2024, a grim record was set: it was the hottest year ever recorded on Earth. The signs of climate upheaval are now visible to all, as global warming manifests itself in a rapid rise in extreme weather events. In theory, the solution is straightforward: we must stop burning fossil fuels. In practice, phasing out energy sources so firmly entrenched in contemporary societies is an immense challenge. To reduce CO₂ emissions, economists — trained in cost–benefit analysis — can help policymakers design strategies that are both effective and socially acceptable.