Economics, Econometrics and Finance
3 years ago

Governments Unlock Greener Future with Flexible Emissions Policies

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SSRN Electronic Journal
Regulating Greenhouse Gas Emissions by an Inter-Temporal Policy Mix: An Experimental Investigation
Tihomir Ancev, Rimvydas Baltaduonis, Elizabeth Bernold

Paper Summary

The article investigates how transitioning from an emissions tax to a tradable permit scheme affects greenhouse gas regulation. The researchers studied the impact on abatement investment, regulation efficiency, and permit prices. They found that starting with a tax before moving to permits can help reduce uncertainty for emitters and improve overall regulation effectiveness.

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