Pricing Carbon Effectively: Lessons from the European Emissions Trading System
EU climate policy shows success, but flaws remain that may affect the achievement of carbon pricing and long-term goals.
- EU emissions have fallen sharply in industry and electricity sectors, although innovation has been only moderate.
- The threat of competitive harm to European industry has thus far been overstated.
- Persistently low carbon prices and incomplete coverage exclusion of the heat and mobile sectors undermines the influence of carbon pricing.
- Recent reforms have stimulated prices substantially, but they remain uncertain in the long term.
- A minimum carbon price would boost performance, stabilize expectations and avoid lock-in of carbon-intensive assets.
On the Issues — Nov 10, 2023
On the Issues: Renewable Energy Headwinds, Electric Grid Upgrades, and More
A biweekly newsletter connecting global current events, pressing climate and energy policy news, and economics research from RFF scholars. This week: Renewable Energy Headwinds, Electric Grid Upgrades, and More.
Common Resources — Nov 9, 2023
Adding an Emissions Cap to the Inflation Reduction Act Would Help Meet US Climate Goals
Implementing a federal cap-and-trade policy would complement the Inflation Reduction Act. Together, these two policies could reduce air pollution and retail electricity prices and ensure that the United States meets its national climate goals for 2030.
Resources Magazine — Oct 4, 2023
California’s Cap-and-Trade Program and Improvements in Local Air Quality
Although sometimes at odds, economic efficiency and environmental justice can coexist in effective, viable climate policy. Thoughtful policy design can help ensure that environmental benefits accrue in communities that need them the most.
Testimony and Public Comments — May 15, 2023
Comments to the Washington Department of Ecology on Connecting Washington’s Cap-and-Invest Program to Other Carbon Markets
To the Washington Department of Ecology on the potential for Washington State to link its carbon market with the shared market of California and Quebec.