Topic updates

Circular Economy - the companies making stuff from CO2

Graham Watson

9th December 2021

This article highlights how some innovative firms are generating value from carbon, including vodka, diamonds and active leisurewear.

There are a number of start-ups operating in this field, and longer-term the goal is probably to produce aviation fuel - however, at the moment, the problem seems to be in attracting sufficient customers.

An interesting perspective on climate change is offered in this article: the biggest carbon emitters aren't divisible by where they live but how rich they are.

And if, as the article suggests, the rich generate half of greenhouse gas emissions, shouldn't the pay more to tackle the issue? It would seem to be a simple application of the Pigouvian principle that the polluter pays.

Levying higher taxes on aviation fuel, for example, would be a start, whereas in many developed economies aviation fuel is tax-free.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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