Why are some carbon credits $0.40 and others $9.60?
May 17, 2018
If every carbon credit is 1 ton of CO2, why are credits priced so differently?
This is a tough question because the answer is not satisfactory. Even though every carbon credit represents the same environmental benefit (1 ton of CO2), the cost to create each credit widely differs project by project. (see chart)
The problem however is that you and I don’t get to see the costs of making an offset. There is no regulated cost structure which means a credit made at a landfill gas project in Gaston County North Carolina can be $2 less than a credit made at a similar project in Orange County, Florida.