Economics
Carbon Tax versus Cap-and-Trade: Comparative Effectiveness
Quick fact
The European Union's Emissions Trading System (EU ETS) is cap-and-trade in action, while Sweden's carbon tax is one of the world's highest at over $100 per ton. Both have reduced emissions, but they create very different incentives for polluters.
Why this is interesting
You've probably heard of carbon taxes and cap-and-trade, but have you ever wondered which one actually reduces emissions more effectively? The surprising answer depends on what you're most worried about: the cost or the environmental outcome.