Benefits of Emissions Trading: Taking Stock of the Impacts of ETS Worldwide
ICAP has just published a new paper that consolidates empirical evidence of the positive impacts of ETS around the world to date, with theoretical and conceptual arguments in favor of ETS.
Emissions trading is increasingly becoming a key climate policy instrument in a range of jurisdictions around the world. More than a decade has passed since the first ETS for greenhouse gases was established in the European Union – time to systematically review the available evidence on the benefits of the policy instrument to date.
Based on a review of academic literature and official reports, this paper argues that ETS ensures environmental effectiveness, makes economic sense and can also support a broad range of additional policy objectives. Not surprisingly, the paper finds that evidence to date is centered on those systems in Europe and North America that have been implemented the longest. ICAP intends this paper as a live document, to be reviewed and amended as new evidence becomes available. To this end, we ask ETS experts and policymakers to help with the ongoing development of this paper by notifying the ICAP Secretariat as new evidence comes to light.
- Benefits of Emissions Trading - ICAP Paper