Economics
The Economics of Tradeable Emissions Permits in Climate Policy
Quick fact
The European Union’s Emissions Trading System (EU ETS) is the world’s largest carbon market, covering around 40% of EU emissions, and its price per tonne of CO2 has ranged from near zero to over €100.
Why this is interesting
Imagine if polluting were a privilege you had to pay for—but the price isn’t set by a government, it’s set by the market. That’s the revolutionary idea behind tradeable emissions permits.