- List of Contributors
- Climate Change and Society: Approaches and Responses
- A Truly Complex and Diabolical Policy Problem
- The Nature of the Problem
- The Poverty of Climate Economics
- The Development of the Concept of Dangerous Anthropogenic Climate Change
- Voices of Vulnerability: The Reconfiguration of Policy Discourses
- The Physical Sciences and Climate Politics
- Cosmopolitan Knowledge: Climate Science and Global Civic Epistemology
- Organized Climate Change Denial
- Communicating Climate Change: Closing the Science‐Action Gap
- Economic Estimates of the Damages Caused by Climate Change
- Weighing Climate Futures: A Critical Review of the Application of Economic Valuation
- Global Change Vulnerability Assessments: Definitions, Challenges, and Opportunities
- Health Hazards
- Indigenous Peoples and Cultural Losses
- Climate Change and ‘Security’
- Human Security
- Climate Refugees and Security: Conceptualizations, Categories, and Contestations
- From Efficiency to Justice: Utility as the Informational Basis of Climate Strategies, and Some Alternatives
- Climate Justice
- International Justice
- Intergenerational Justice
- Public Opinion and Participation
- Social Movements and Global Civil Society
- Translocal Climate Justice Solidarities
- Climate Denial: Emotion, Psychology, Culture, and Political Economy
- The Role of Religions in Activism
- Comparing State Responses
- Climate Change Politics in an Authoritarian State: The Ambivalent Case of China
- Cities and Subnational Governments
- Issues of Scale in Climate Governance
- Decarbonizing the Welfare State
- Discourses of the Global South
- Economic Policy Instruments for Reducing Greenhouse Gas Emissions
- Policy Instruments in Practice
- Carbon Trading: A Critique
- Redesigning Energy Systems
- Corporate Responses
- Is Green Consumption Part of the Solution?
- Selling Carbon: From International Climate Regime to Global Carbon Market
- Improving the Performance of the Climate Regime: Insights from Regime Analysis
- Reconceptualizing Global Governance
- The Role of International Law in Global Governance
- The Democratic Legitimacy of Global Governance after Copenhagen
- New Actors and Mechanisms of Global Governance
- Name Index
- Subject Index
Abstract and Keywords
Economic instruments have played a major role in policies and proposals to address climate change in many countries and regions, with the European Union Emissions Trading Scheme (EU ETS) the most prominent example. This article considers the use of economic instruments to address climate change, including lessons from previous experience as well as a list of the key design elements. It focuses on the cap-and-trade approach and complementary credit-based programs because they have been most prominent in existing policies and proposals. It begins with an overview of the conceptual similarities and differences between cap-and-trade programs and carbon taxes. It then summarizes experiences with emissions trading and taxes that provide lessons on how the programs work in practice. Furthermore, it describes key policy issues that arise in designing a GHG cap-and-program, many of which apply to carbon taxes as well.
David Harrison, Jr., Ph.D. is Senior Vice President, NERA Economic Consulting.
Andrew Foss is Consultant, NERA Economic Consulting.
Per Klevnas is Senior Consultant, NERA Economic Consulting.
Daniel Radov is Associate Director, NERA Economic Consulting.
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