Virtual Carbon Pricing (VCP) needs technologies that can seamlessly connect participants' decisions on VCP with vendor websites, household accounting apps, or enterprise resource planning systems. If you are an engineer with a relevant background, please join the initiative.
Below are some imaginary scenarios that illustrate the potential of VCP:
She finds a few tablets that meet her specifications. The website shows other features such as lifetime GHG emissions, but the best option for GHG control purposes is the most expensive, and she doesn’t know if it is worth the cost.
With VCP, she chooses the carbon price at the level of her choice, which aligns with the policy of a European country she learned about in class. Using a VCP browser extension, she can see the prices of the tablets, including the virtual carbon taxes that would be charged if there were a carbon tax. She finds that the tablet with the least GHG emissions is still more expensive than a couple of other options, and there is another tablet that is more reasonable after taking into account the virtual carbon tax.
He launches various programs to encourage environmentally friendly behaviors among employees, but only a fraction of them respond to those initiatives.
He decides to introduce a vendor interface for factory supplies that shows VCP-affected prices and integrates it into the company’s resource planning system. With this system, every purchase from the vendor by every employee takes into account the environmental cost of GHG emissions.
The carbon tax collected will stay within the enterprise and can be used for any purposes that match the enterprise's needs.
After filtering by the size and the load requirements, there are two options left. One option is made of plastic and the other is made of wood and metal. She wonders which option to choose.
She notices that the plastic shelves might not be environmentally friendly but are cheaper than the wooden ones. Without VCP, she chooses the plastic shelves to minimize the impact on her store equipment budget.
With VCP, she can see that the wooden shelves are cheaper after applying the virtual carbon tax. If VCP is introduced as a company-wide initiative, her KPIs are measured under VCP, so she can choose the wooden shelves and minimize the impact on her budget simultaneously.