Carbon pricing for climate change mitigation.
2018
Timilsina, G. R.
Carbon pricing, which includes carbon tax, emission trading systems and carbon offset mechanisms, is the main economic instrument to reduce greenhouse gases (GHG) emissions responsible for global climate change. The academic literature on carbon pricing is rich due to hundreds of studies carried out over the last four decades. Its implementation in practice is limited. However, over the last few years, particularly after the Paris Climate Agreement, carbon pricing has attracted much attention from national/sub-national governments, the corporate world and international development communities. More than 80 countries who signed the Paris Climate Agreement are considering carbon pricing as a potential option to achieve their GHG mitigation targets. This paper briefly introduces carbon pricing concept, major issues related to it, key messages produced by the rich literature and status of its implementation in practice around the world.
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