Practice areas

Carbon Pricing

We have undertaken carbon pricing analysis studies in the UK, EU, US, Australia, South Africa and for a wide range of organisations including the PMR, IEA, OECD, European Commission, Australian Productivity Commission as well as a wide range of private sector companies. This means that we have an exceptionally thorough understanding of different carbon (pricing) policies. By working with both public and private sector clients, we understand the imperatives of each and can frame our analysis accordingly.   

The carbon pricing practice focusses on three key areas:

1.                   The design of carbon pricing instruments and integration within a broader (energy) policy suite.

2.                   Modelling the impacts of carbon pricing instruments (trading, taxes and others) on the economy (e.g. GDP, employment, distributional impacts), energy production, and emissions. Our frameworks of analysis offer insight on the effects of policy on prices, market shares, firm profits, emission and abatement incentives, network regulation and growth, that are not available elsewhere.

3.                   An innovative approach to estimate carbon leakage and competitiveness impacts in industry.

We pride ourselves in communicating economic insights in an actionable manner to policy makers, as illustrated by our advice to several governments on the design and impacts of carbon pricing instruments. Vivid Economics is known for delivering well-structured, clear and concise reports. The PMR has commissioned several well-received reports from Vivid, indicating that our writing style corresponds with its high standards of written materials. Vivid was specifically contracted for editing and rewriting a draft of the PMR’s EU ETS Handbook in 2015-16 and the 2016 edition of the cornerstone report State and Trends of Carbon Pricing.