Developing a Market Solution to Control Global Warming within 1.5°C

Exciting news in evidence-based policy research! Professor Ahmed Khalifa and Dr. Mustafa Afacan are thrilled to announce that their research titled “Developing a Market Solution to Control Global Warming within 1.5°C” has been shortlisted for the prestigious THE Awards -MENA, 2023. 🌍🔬 Their groundbreaking work combines theory, empirics, and technology to pursue the ambitious goal of achieving the 1.5°C target both domestically and globally. 📈🌱 Explore their research, which was funded by a series of research grants (NPRP9-232-5-026, NPRP10-0131-17-300, and NPRP12C-0821-190017), and is now featured on the United Nations Website Link

Abstract: Achieving the goal of limiting global warming to 1.5°C by 2050 requires worldwide net zero CO2 emissions, and carbon pricing is a key tool in achieving this (OECD, 2021). Countries that have implemented carbon pricing policies have seen a slowdown in CO2 emissions (Khalifa et al. 2023, WEAI) 1. To further this effort, we propose a theoretical and empirical application of the Vickrey Price Auction (VPA) algorithm for implementing efficient carbon pricing globally. The algorithm calculates the allocation of carbon permits by soliciting bids from each firm, resulting in a simple, transparent, and efficient process