CARBON TAXES VS. CAP AND TRADE: WHICH IS MORE EFFECTIVE IN REDUCING EMISSION
- Version
- Download 12
- File Size 333.89 KB
- File Count 1
- Create Date 12 June 2025
- Last Updated 12 June 2025
CARBON TAXES VS. CAP AND TRADE: WHICH IS MORE EFFECTIVE IN REDUCING EMISSION
Author: Shourya Dewangan, Bachelor of Arts in Economics (Hons), Amity University Chhattisgarh Guide: Dr Neelima Singh Thakur, Assistant Professor, Amity University Chhattisgarh
May 2025
Abstract:
This study compares the effectiveness of carbon taxes and cap-and-trade systems in reducing greenhouse gas emissions. Using qualitative analysis and international case studies, it evaluates each mechanism’s impact on cost-efficiency, innovation, revenue generation, and policy adaptability. Findings suggest that carbon taxes offer price certainty and simplicity, while cap-and-trade ensures emissions limits and industry flexibility. The research concludes that a hybrid approach combining both tools provide the most effective and balanced strategy for climate policy.
Key Words: Carbon tax, Cap-and-trade, Greenhouse gas emissions, Cost-efficiency, Innovation, Hybrid approach