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.
Resources Magazine — May 19, 2022
Senior Fellow Status Update
Robert Stavins talks with economist Maureen L. Cropper about her career in environmental economics, the social cost of carbon, the future of climate policy, climate activism, and more.
Media Highlight — Feb 16, 2022
KNX in Depth: California's Cap-and-Trade Policy
Senior Fellow Dallas Burtraw shares his thoughts on California's cap-and-trade policies with KNX News, a California radio station.