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New ICAP Brief compares carbon tax and ETS

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ICAP ETS Brief #8 on carbon tax and ETS released

ICAP has released a new ETS Brief exploring the similarities and differences between a carbon tax and ETS as a pricing instrument to encourage cost-effective emissions reductions.

With a significant increase in carbon pricing initiatives in the past year that includes both ETS and taxes, this brief is designed as an entry point that distills what the two instruments have in common and the tradeoffs that emerge from their key differences. These tradeoffs, such as flexibility versus simplicity, are critical for policymakers when considering which instrument is best for their own jurisdictions. The brief also covers which jurisdictions in the world use an ETS, a carbon tax, or a combination of both.     

This brief marks the eighth in ICAP’s series on ETS essentials, all of which are available in English as well as five other languages through our Publications page. The language versions of Brief #8 are available here: Spanish, French, Russian, Korean and Chinese.