11 November 2013

Carbon Cap and Trade

Cap and trade comes in two parts: a cap on total emissions and a system that allows trading to achieve that limit as cost-effectively as possible.

Abstract:

Cap and trade comes in two parts: a cap on total emissions and a system that allows trading to achieve that limit as cost-effectively as possible. The resulting market and price on emissions create incentives for reducing carbon pollution. Properly designed, carbon cap and trade can be a powerful tool in the fight to avert the most dangerous consequences of global warming. It has increasingly been shown as such around the world.

Full text: "Carbon Cap and Trade"

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Financial Times business school teaching case study

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