The need to reduce anthropogenic emissions of greenhouse gases into the atmosphere – notably carbon dioxide (CO2) – is crucial to slowing down the rate of global climate change. Governments can reduce these emissions by advocacy, by regulation and by the application of economic instruments. Economic analysis shows convincingly that placing primary emphasis on the use of economic instruments provides the most
cost-effective route for such emission reduction. In this report we consider two generic types of economic instrument that could provide the most effective solution to rising CO2 emissions: a carbon tax imposed on all CO2 emissions, and the allocation of tradable emission permits.
Format: Digital (Free) (ill., charts)