This brief describes issues involved in choosing the set of greenhouse gases (GHGs), emission sources, and sectors of the economy included in a cap-and-trade program. Trade-offs between three primary criteria determine whether a source should be included in a cap-and-trade …
This policy brief outlines various options for distributing greenhouse gas emission allowances under a cap-and-trade program. Allowances represent a significant source of value and can be used to compensate firms or individuals affected by climate change policy or to raise …
This brief outlines the motivation for and key features of a tax designed to reduce emissions of greenhouse gases (GHGs). The two most commonly discussed market-based instruments for reducing GHG emissions are a cap-andtrade system and a GHG (carbon) tax. …
This paper aims to provide policymakers with practical recommendations regarding the integration of greenhouse gas (GHG) offsets into emerging regulatory systems. Offsets have an important role to play in controlling the costs associated with regulating and reducing GHGs, and in …
Effort to develop a mandatory climate policy is accelerating and it seems likely that a national market-based strategy for dealing with climate change is on the near term horizon. Key provisions are likely to include a cap on selected greenhouse …
To meet its obligations to reduce greenhouse gas (GHG) concentrations under the Kyoto Protocol, the European Union (EU) established the first cap-and-trade system for carbon dioxide emissions in the world starting in 2005. Proposed in October 2001, the EU’s Emissions …
Economic models establish a logical and consistent framework for considering the implications of different policies, and have been extensively used to evaluate the consequences of different policy choices for addressing global climate change. But it is important to understand both …
In response to environmental impacts associated with climate change, policies are being crafted to curb the growth in greenhouse gas (GHG) emissions. European nations are already engaged in reducing emissions through the European Union Emissions Trading System (EU-ETS) as a …
Since climate change first emerged as an international issue in the late 1980s, a recurring policy question has been whether to address it on a comprehensive or a sector-by-sector basis. In recent years, sectoral approaches have received renewed attention and …