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Governance of CO2 markets: lessons from the EU ETS

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  • Christian de Perthuis

    (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

  • Raphaël Trotignon

    (CEC - Chaire Economie du Climat - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres)

Abstract

The economic literature differentiates "command and control" policies, in which the public authority sets up standards and rules to directly reduce environmental damage, from policies based on "economic tools" aiming at internalizing the cost of environmental damage. There is a broad consensus among economists in favour of economic tools that aim at protecting the environment in the most efficient way, i.e. by minimizing the total cost of pollution abatement. Despite those recommendations, most of the environmental policies implemented in the real world continue to favour command and control policies.

Suggested Citation

  • Christian de Perthuis & Raphaël Trotignon, 2013. "Governance of CO2 markets: lessons from the EU ETS," Post-Print hal-01504635, HAL.
    • Handle: RePEc:hal:journl:hal-01504635
    Note: View the original document on HAL open archive server: https://hal.science/hal-01504635v1
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    References listed on IDEAS

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    More about this item

    Keywords

    Energy policy; European Union Emission Trading Scheme;

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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