Abstract
This paper explores the prospects for a global carbon market as the centerpiece of any serious attempt to reach the ambitious goal for greenhouse gas (GHG) reductions set by climate scientists. My aim is to clarify the extent to which we know what policy might best support global decarbonisation. We begin by discussing what we might mean by a global carbon market and its theoretical properties. We then go on to discuss the EU Emissions Trading System experience and the recent experience with the Australian carbon tax. Next, we assess recent carbon market initiatives in the US and in China. My argument is that while establishing the amount of emissions required and dividing it up acceptably between countries requires an enormous scientific and international negotiations effort, the economic instruments to deliver the agreed targets are readily at hand.
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08 July 2019
An Erratum to this paper has been published: https://doi.org/10.1007/s42524-019-0050-3
08 July 2019
A Correction to this paper has been published: https://doi.org/10.1007/s42524-019-0050-3
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Acknowledgements
The author wishes to thank Michael Mehling, three anonymous referees, the editors of this special issue and various seminar audiences for their comments and encouragement. He acknowledges the financial support of MIT CEEPR. The usual disclaimer applies.
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A correction to this article is available at https://doi.org/10.1007/s42524-019-0050-3
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Pollitt, M.G. A global carbon market?. Front. Eng. Manag. 6, 5–18 (2019). https://doi.org/10.1007/s42524-019-0011-x
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DOI: https://doi.org/10.1007/s42524-019-0011-x