Environmental Science
Economics of Carbon Trading Mechanisms
Quick fact
The European Union Emissions Trading System (EU ETS) is the world's largest carbon market, covering about 40% of EU greenhouse gas emissions.
Why this is interesting
Imagine a company can buy the right to pollute—just like buying a concert ticket. But what if those tickets could be traded, and the price fluctuates based on supply and demand? That's the core idea behind carbon trading.