> Either being carbon neutral is not as economy-killing as some say, or the true price is much higher.
I think the distinction you're overlooking is marginal price vs true price. It could easily be the case that reducing carbon on the margins is cheap.
Going from 100% of current levels to 99% may involve giving up some very low value activity. Especially because in most of the world the cost of carbon emissions is zero to begin with. But going from 1% to 0% could be extraordinarily costly, because it involves the highest value usage of carbon.
Another way to think about it is that carbon offsets may be very cheap, because so few people buy them. If the practice became more widespread, either because of social norms or government regulation, then the demand could easily push up the price to where it does become a significant cost.
I think the distinction you're overlooking is marginal price vs true price. It could easily be the case that reducing carbon on the margins is cheap.
Going from 100% of current levels to 99% may involve giving up some very low value activity. Especially because in most of the world the cost of carbon emissions is zero to begin with. But going from 1% to 0% could be extraordinarily costly, because it involves the highest value usage of carbon.
Another way to think about it is that carbon offsets may be very cheap, because so few people buy them. If the practice became more widespread, either because of social norms or government regulation, then the demand could easily push up the price to where it does become a significant cost.