Name: The European Union Emissions Trading System reduced CO2 emissions despite low prices
Brand: doi.org
SKU: doi-org-7
Availability: OnlineOnly

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The European Union Emissions Trading System reduced CO2 emissions despite low prices

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Edited by Arild Underdal, University of Oslo, Oslo, Norway, and approved March 2, 2020 (received for review October 16, 2019)International carbon markets are an appealing and increasingly popular tool to regulate carbon emissions. They put a price on carbon emissions and make pollution less attractive for regulated firms. However, carbon markets often produce prices which are deemed too low relative to the social cost of carbon. We argue that despite low prices, carbon markets can help reduce emissions. Using a statistical model and sectoral emissions data, we find that the EU ETS, which...

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The European Union Emissions Trading System reduced CO2 emissions despite low prices

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