Environmental Science
Designing Effective Climate Policy: Carbon Taxes vs. Cap-and-Trade Systems
Quick fact
The European Union's Emissions Trading System (EU ETS) is the world's largest cap-and-trade program, covering about 45% of the EU's greenhouse gas emissions. It has cut emissions from power and industry by over 40% since 2005, even as the economy grew.
Why this is interesting
Imagine if the air we breathe had a price tag – but who sets it, and how does that price influence our climate future?