scholarly journals Cap and trade policies in the presence of monopoly and distortionary taxation

2002 ◽  
Vol 24 (4) ◽  
pp. 327-347 ◽  
Author(s):  
Don Fullerton ◽  
Gilbert E Metcalf
Keyword(s):  
Trade Policies ◽  
Cap And Trade ◽  
Distortionary Taxation

scholarly journals Cost-Effectiveness Implications of Carbon Price Certainty

2020 ◽  
Vol 110 ◽  
pp. 113-118
Author(s):  
Joseph E. Aldy ◽  
Sarah Armitage
Keyword(s):  
Cost Effectiveness ◽  
Carbon Tax ◽  
Pollution Abatement ◽  
Cost Effective ◽  
Carbon Price ◽  
Trade Policies ◽  
Price Uncertainty ◽  
Cap And Trade ◽  
Emission Abatement ◽  
Resource Costs

While a firm knows the carbon price with certainty under a tax, it must form an expectation about future allowance prices to identify its cost-effective abatement investment under a capand-trade program. We illustrate graphically how errors in forming this expectation increase the costs of irreversible pollution abatement investment under cap-and-trade relative to a tax. We describe empirical “cost-effectiveness anomalies” in allowance markets that may be attributed to cap-and-trade's inherent uncertainty. We model investment under simulated US carbon tax and cap-and-trade policies and find that allowance price uncertainty can increase resource costs 20 percent for a given quantity of emission abatement.

Canadian cap-and-trade policies could spread

2015 ◽  
Keyword(s):  
Provincial Government ◽  
Trade Policies ◽  
Cap And Trade ◽  
Joint System ◽  
Carbon Pricing ◽  
Content Type ◽  
Trading Market ◽  
Canadian Population ◽  
Canadian Market ◽  
The Impact

Subject The impact of Ontario's decision to adopt a cap-and-trade system. Significance The Ontario provincial government will introduce a cap-and-trade system in the province by joining Quebec and California's carbon-trading market. Ontario is Canada's fourth province to implement a form of carbon-pricing; once it is in place, jurisdictions responsible for 80% of Canada's emissions will have some kind of carbon pricing. The joint carbon market with Quebec will also cover more than half of the Canadian population. Impacts The joint system may facilitate Californian companies' entry into the Canadian market. Success in raising money through the system may encourage other cash-strapped US states to join. Support for climate change policies could become a wedge issue in the federal elections in October, to Harper's detriment.

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