Carbon trading: how it works and why it fails
Abstract:Carbon trading is the flagship policy for tackling climate change within Europe, and it is failing badly. While in theory it provides a cheap and efficient means to limit greenhouse gas reductions within an ever-tightening cap, in practice it has rewarded major polluters with huge windfall profits, whilst undermining efforts to reduce pollution and achieve a more equitable and sustainable economy. This article briefly examines the theory of carbon trading, then looks at the empirical record of both the EU Emissions Trading System (EU ETS) and the UN Clean Development Mechanism, which are the world's largest carbon trading schemes. In conclusion, it briefly surveys the plethora of ways to tackle climate change in a more just and equitable manner.
Document Type: Research Article
Publication date: August 11, 2010
More about this publication?
- Soundings pioneers thoughtful, critical ideas on culture, society and politics. That's why leading left thinkers from Britain, Latin America, Asia, the United States and Europe debate their ideas in our pages.
'Deeply thoughtful about the public life of politics and the intimacy of our private lives and how they interconnect. Soundings is one of the few places where you read ideas which can change your mind.' Madeleine Bunting
- Editorial Board
- Information for Authors
- Subscribe to this Title
- Ingenta Connect is not responsible for the content or availability of external websites