I searched the online paper for "shadow" and "virtual" but came up blank. This is a pity. Shadow carbon prices are now mandatory in cost-benefit analyses is the US federal government, and no doubt elsewhere. (See for instance https://www.epa.gov/system/files/documents/2023-12/epa_scghg_2023_report_final.pdf ) There is a tricky technical problem here, since a shadow carbon price by itself has no impact, and what it does have is mediated by the policies and actions to which it contributes - taxation, investment, or regulation. But ignoring shadow prices is not sound.
I searched the online paper for "shadow" and "virtual" but came up blank. This is a pity. Shadow carbon prices are now mandatory in cost-benefit analyses is the US federal government, and no doubt elsewhere. (See for instance https://www.epa.gov/system/files/documents/2023-12/epa_scghg_2023_report_final.pdf ) There is a tricky technical problem here, since a shadow carbon price by itself has no impact, and what it does have is mediated by the policies and actions to which it contributes - taxation, investment, or regulation. But ignoring shadow prices is not sound.