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An Overview of Carbon Markets and Emissions Trading: Lessons for Canada

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Author Info
Michael R. King

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Abstract

The author provides an overview of carbon markets and explains how emissions trading can be important in encouraging the reduction of CO2 emissions in an efficient manner. He describes the key steps in establishing a cap-and-trade system, and reviews the European experiences with emissions trading. He highlights the lessons learned from the EU Emissions Trading System on how to design a market that operates efficiently and effectively. By learning from the experience of other countries, Canada can avoid the uncertainty and volatility witnessed in carbon markets abroad while benefiting from an efficient trading mechanism that contributes to the welfare of all Canadians.

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File URL: http://www.bankofcanada.ca/en/res/dp/2008/dp08-1.pdf
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Publisher Info
Paper provided by Bank of Canada in its series Discussion Papers with number 08-1.

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Length: 14 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:bca:bocadp:08-1

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Web page: http://www.bank-banque-canada.ca/

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Related research
Keywords: International topics; Market structure and pricing;

Find related papers by JEL classification:
D4 - Microeconomics - - Market Structure and Pricing
N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply (the Commons)

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This page was last updated on 2009-11-12.

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