Robert Stavins, Gabriel Chan, Robert Stowe, Richard Sweeney, 12 August 2012

The US sulphur dioxide cap-and-trade programme, aimed at the acid rain problem, has been hailed as a great success in almost all areas. This column argues that the programme’s success may tell us something about whether cap and trade can be applied more widely in climate policy.

Sebastian Rausch, Gilbert Metcalf , John Reilly , Sergey Paltsev, 31 July 2010

The carbon-pricing implications of cap-and-trade programmes have raised concern that they might be a regressive policy tool. This column documents how allowance allocation schemes similar to those in recently proposed US legislation address distributional concerns and challenges the view that carbon pricing is necessarily regressive.

Daniel Gros, 05 December 2009

The purpose of a cap-and-trade system is to help in the fight against global climate change. This column warns that a unilateral approach could increase global emissions by shifting production to more carbon-intensive methods abroad. Acting alone, the EU’s Emission Trading Scheme may be doing more harm than good.

Gilbert Metcalf, 27 June 2009

Nearly all economists agree that the most efficient way to address environmental problems is to raise the cost of the pollution-generating activity, but US policies subsidise clean-energy alternatives instead. This column criticizes that approach – subsidies lower the cost of energy, play favourites with technologies, are often inframarginal, and frequently interact in unexpected ways with other policies.

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