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Carbon Pricing as an Effective Instrument of Climate Policy: Searching for an Optimal Policy Instrument

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Abstract

The paper highlights the use of carbon pricing as an effective market tool to control GHG emissions It describes the discussion on the benefits and limitations of both carbon tax and carbon trading. The paper summarises this debate and it argues that, as well as economic effectiveness, many other factors are highly relevant when choosing the right policy instrument. These include political feasibility, impact on competitiveness, institutional requirements, incentives for R&D and many others. Finally, interesting lessons are drawn for policy makers and academics willing to develop such instruments.

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Bibliographic Info

Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 99 (2009)
Issue (Month): 3 (JULY-SEPTEMBER 2009)
Pages: 147-169

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Handle: RePEc:rpo:ripoec:v:99:y:2009:i:3:p:147-169

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Related research

Keywords: carbon taxes; cap and trade;

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Cited by:
  1. Galarraga, Ibon & Abadie, Luis M. & Ansuategi, Alberto, 2013. "Efficiency, effectiveness and implementation feasibility of energy efficiency rebates: The “Renove” plan in Spain," Energy Economics, Elsevier, vol. 40(S1), pages S98-S107.
  2. Ibon Galarraga & Luis M. Abadie & Alberto Ansuategi, 2013. "Economic Efficiency, Environmental Effectiveness and Political Feasibility of Energy Efficiency Rebates: The Case of the Spanish Energy Efficiency Renove Plan," Working Papers 2013-05, BC3.
  3. M. Gallastegui & M. González-Eguino & I. Galarraga, 2012. "Cost effectiveness of a combination of instruments for global warming: a quantitative approach for Spain," SERIEs, Spanish Economic Association, vol. 3(1), pages 111-132, March.

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