Benefits of ETS
First published in 2016, the paper is intended to be an accessible resource that summarizes the main conceptual and theoretical arguments for ETS, supported by a consolidated body of empirical evidence. After two years, ICAP has updated the paper with fresh evidence and up-to-date data that lends further weight to the arguments for ETS as a proven domestic climate policy instrument. The evidence shows that ETS makes both environmental and economic sense - it drives emissions reductions, incentivizes cost-effective abatement, and encourages the innovation of low-carbon technologies. Furthermore, ETS is shown to be a flexible, adaptable and politically feasible instrument that can generate public revenues and substantial co-benefits for public health and employment.
Accompanying the paper is a tool for policymakers – a spreadsheet that provides easy access to the paper’s key references.