Table 2:

Summary performance of carbon pricing and three alternative key instrument categories (assuming correct implementation), according to four main performance criteria (colours indicate performance: green = strong, brown = moderate, red = weak). Note that whereas carbon pricing without considering revenue use would score worse on the equity criterion (except possibly for developing countries), it performs well when accounting for revenues partially or wholly used for compensating any inequitable effects.

POLICY INSTRUMENTPERFORMANCE CRITERIA |
EffectivenessEquityEfficiencyGlobal harmonization
Carbon pricingHigh: covers all emissions, limits reboundHigh: revenues for compensationHigh: selection cheap optionsHigh: negotiations target uniform price or linking ETSs
Technical standardsMedium: incomplete coverage, rebound, incomplianceMedium: no revenues for compensationLow: no selection of cheap optionsLow: uncountable technologies/products, favour national industries
Adoption subsidiesMedium: incomplete coverage, reboundLow: favours house and car ownersLow: no selection of cheap options, use of public budgetLow: heterogenous budgetary capacity, favour national industries
Information provisionLow: little emissions reduction, reboundHigh: voluntary choiceMedium: low costLow: moderated by cultural norms and consumer habits

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