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.
