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Effectiveness of emissions trading

Posted on 12 August 2011

Emissions trading is one among a range of policy options av­ailable to mitigate greenhouse gas em­issions. It involves putting a limit on the quantity of greenhouse gas emissions (usually converted to their carbon dioxide equivalent [CO2e]) that can be emitted over a set period of time—the ‘emissions cap’.
Tr­ading sc­heme participants (ty­pically firms or production fac­i­lities) are then permitted to buy and sell emission allowances to meet their emissions cap. Most recently, emissions trading has attracted considerable attention due to its potential to deliver emission reductions at lower cost than other policy alternatives, such as traditional regulatory approaches……………………………………….Full Article: Source


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