In order to put a price on carbon, governments use sciency-y techniques to come up with estimates – but rely on assumptions that are nonsensical:
The scenarios underlying the SCC estimates of the Biden administration envision cumulative carbon dioxide emissions that are far, far in excess of any plausible current expectation about the future. In fact, to even approach these massive amounts of cumulative emissions, the world would have to make it a policy goal to burn as much coal as possible over the coming centuries. That seems unlikely.
Translation: The Administration’s estimate of carbon $value/ton is based on an impossible assumption -there’s not enough carbon to reach such levels.
If there is a little bit of math involved, the media just reprints the press release without critical analysis.
Reminder: I invested in solar PV for my house, to offset the 70+% utility electricity produced by fossil fuels. I also replaced my attic insulation to R-60, and have installed two 220v outlets for future EV charging. Heating is done with locally sourced wood byproduct which the UN rates as carbon neutral. Carbon calculators indicate our household carbon emissions are one quarter that of average homes.