Green Premium

E515552

Green Premium is Bill Gates’s term for the extra cost of choosing clean technologies over higher-emission alternatives, used to highlight and quantify the economic challenge of decarbonization.

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Statements (47)

Predicate Object
instanceOf climate policy concept
economic concept
term coined by Bill Gates
aimsToInform business leaders
governments
investors
the general public
appliesTo agriculture and food systems
building heating and cooling
electricity generation technologies
industrial processes
transportation fuels
associatedWith Breakthrough Energy NERFINISHED
calculatedAs (cost of clean option) minus (cost of high-emission option)
canBeExpressedAs absolute cost difference
percentage cost difference
coinedBy Bill Gates NERFINISHED
contrastedWith "Green Discount" when clean options become cheaper than high-emission options NERFINISHED
dependsOn carbon pricing or lack thereof
fuel prices
regulation and policy
scale of deployment of clean technologies
technology costs
describedIn the book "How to Avoid a Climate Disaster" NERFINISHED
goalRelated reducing the Green Premium to zero or below for key sectors
hasComponent cost of clean technology option
cost of higher-emission alternative
hasDefinition the extra cost of choosing clean technologies over higher-emission alternatives
hasPurpose to highlight the economic challenge of decarbonization
to quantify the cost gap between clean and high-emission technologies
implies clean technologies are currently more expensive than high-emission alternatives in many sectors
indicates how much more consumers or businesses must pay to use low-carbon options
relatedTo carbon pricing
clean technology
climate economics
decarbonization
energy policy
fossil fuel technology
greenhouse gas emissions
timeDependent yes
usedIn climate change mitigation discussions
energy transition analysis
investment decisions in clean technology
public policy debates on decarbonization
usedToEvaluate feasibility of climate policies
priority areas for clean tech innovation
where subsidies or incentives may be needed

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