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Using the Market to Address Climate Change: Insights from Theory and Experience 31
Aldy, Joseph E.; Stavins, Robert N..
Emissions of greenhouse gases linked with global climate change are affected by diverse aspects of economic activity, including individual consumption, business investment, and government spending. An effective climate policy will have to modify the decision calculus for these activities in the direction of more efficient generation and use of energy, lower carbon-intensity of energy, and – more broadly – a more carbon-lean economy. The only approach to doing this on a meaningful scale that would be technically feasible and cost-effective is carbon pricing, that is, market-based climate policies that place a shadow-price on carbon dioxide emissions. We examine alternative designs of three such instruments – carbon taxes, cap-and-trade, and clean energy...
Tipo: Working Paper Palavras-chave: Global Climate Change; Market-Based Instruments; Carbon Pricing; Carbon Taxes; Cap-And-Trade; Clean Energy Standards; Environmental Economics and Policy; Q540; Q580; Q400; Q480.
Ano: 2011 URL: http://purl.umn.edu/119095
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The Promise and Problems of Pricing Carbon: Theory and Experience 31
Aldy, Joseph E.; Stavins, Robert N..
Because of the global commons nature of climate change, international cooperation among nations will likely be necessary for meaningful action at the global level. At the same time, it will inevitably be up to the actions of sovereign nations to put in place policies that bring about meaningful reductions in the emissions of greenhouse gases. Due to the ubiquity and diversity of emissions of greenhouse gases in most economies, as well as the variation in abatement costs among individual sources, conventional environmental policy approaches, such as uniform technology and performance standards, are unlikely to be sufficient to the task. Therefore, attention has increasingly turned to market-based instruments in the form of carbon-pricing mechanisms. We...
Tipo: Working Paper Palavras-chave: Global Climate Change; Market-Based Instruments; Carbon Pricing; Carbon Taxes; Cap-and-Trade; Emission Reduction Credits; Energy Subsidies; Clean Energy Standards; Environmental Economics and Policy; Q540; Q580; Q400; Q480.
Ano: 2011 URL: http://purl.umn.edu/119105
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Linkage of Tradable Permit Systems in International Climate Policy Architecture 31
Jaffe, Judson; Stavins, Robert N..
Cap-and-trade systems have emerged as the preferred national and regional instrument for reducing emissions of greenhouse gases throughout the industrialized world, and the Clean Development Mechanism — an international emission-reduction-credit system — has developed a substantial constituency, despite some concerns about its performance. Because linkage between tradable permit systems can reduce compliance costs and improve market liquidity, there is great interest in linking cap-and-trade systems to each other, as well as to the CDM and other credit systems. We examine the benefits and concerns associated with various types of linkages, and analyze the near-term and long-term role that linkage may play in a future international climate policy...
Tipo: Working or Discussion Paper Palavras-chave: Linkage; Cap-and-Trade; Tradable Permits; Global Climate Change; Environmental Economics and Policy; F500; Q200; Q400; Q500.
Ano: 2008 URL: http://purl.umn.edu/46624
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