<p>The whole idea of carbon pricing revolves around the shifting of the social costs of climate change to the source of the pollution, encouraging polluters to reduce emissions and invest in clean energy and low-carbon growth. It encompasses a scenario where the cost of carbon emissions is paid at the source, in which choices about fuel use are made and not in the form of developmental, economic, and health costs. Such a scenario, which is the bedrock of the &ldquo;polluter pays&rdquo; principle, would lead to a complete revamp of the incentive structures and policy framework, underpinning global mitigation of carbon emissions.</p>
