“We don’t want a Minsky moment about climate.”
Interesting that Carney talks about “stabilizing at a temperature” when emissions are stabilized using a Carbon tax. He agrees with a Carbon tax, but he seems to have his science wrong. I did not get the impression he understands that to stabilize at any temperature, Carbon emissions need to go to zero. In his world, I wonder, does that mean that a price on Carbon needs to go to infinity? From my perspective, there is an implicit ceiling on Carbon price, and that is the realistic price per tonne to exact a unit of Carbon from atmosphere. Perhaps it would be more, before it’s not just about extracting this tonne of Carbon but this one, and another, and more. But, still, there is a kind of ceiling.