Carbon pricing is effective in reducing emissions while having limited negative economic effects. However, researchers and policymakers should be aware of several methodological issues that may reduce the reliability of the evidence on carbon pricing, writes Kasper Vrolijk. Read more
We formally study the flexibility of emissions permits and propose a unified framework to rationalise the impact of both investment/divestment lags and irreversibility in relation to the price of emissions permits. Read more
The impact of COVID-19 on the price of carbon illustrates just how important it is to build flexibility into cap-and-trade systems and this is something policymakers should remember for the design of the UK’s post-Brexit emissions trading system, argue Josh Burke and Luca Taschini. Read more
This paper describes the benefits of a game created as an active learning method to teach current and future decision-makers about the ‘cap and trade’ system, one of the most innovative policy options developed by environmental economists. Read more
Emissions trading, also known as ‘cap and trade’, is a cost-effective way of reducing greenhouse gas emissions. To incentivise firms... Read more
This paper presents new evidence that the EU Emissions Trading System may have encouraged innovation rather than simply encouraging polluters to adopt existing abatement technologies. Read more
What is the optimal instrument design and choice for a regulator attempting to control emissions by private agents in face... Read more
Working Paper 157 Abstract Climate policy required that much of the world’s reserves of fossil fuels remain unburned. This paper... Read more
Which is better: carbon tax or cap-and-trade? Read more