Yale Plans to Charge University Departments for Their Carbon Emissions

Yale University has announced that it will enact a novel carbon-pricing mechanism in the next academic year in hopes of curbing its greenhouse gas emissions. Devised by a committee led by economist William Nordhaus — an expert on the intersection of climate change and economic policy — the program will operate in a pilot phase for three years before possibly going into full effect, the university said. According to the committee’s report, departments within the university would be charged based on how much their carbon emissions deviated from average levels in the past. The report recommends a price of $40 per ton of carbon dioxide, which is based on current federal legislation and the government’s estimates for the social cost of carbon. “We didn’t see anything like this” when reviewing other institutions’ carbon-pricing schemes, Nordhaus told E&E News, saying he believes Yale’s program is the first and most comprehensive of its kind.