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 INSTRUMENT | PERFORMANCE CRITERIA | | |||
|---|---|---|---|---|
| Effectiveness | Equity | Efficiency | Global harmonization | |
| Carbon pricing | High: covers all emissions, limits rebound | High: revenues for compensation | High: selection cheap options | High: negotiations target uniform price or linking ETSs |
| Technical standards | Medium: incomplete coverage, rebound, incompliance | Medium: no revenues for compensation | Low: no selection of cheap options | Low: uncountable technologies/products, favour national industries |
| Adoption subsidies | Medium: incomplete coverage, rebound | Low: favours house and car owners | Low: no selection of cheap options, use of public budget | Low: heterogenous budgetary capacity, favour national industries |
| Information provision | Low: little emissions reduction, rebound | High: voluntary choice | Medium: low cost | Low: moderated by cultural norms and consumer habits |
| POLICY INSTRUMENT | PERFORMANCE CRITERIA | | |||
|---|---|---|---|---|
| Effectiveness | Equity | Efficiency | Global harmonization | |
| High: covers all emissions, limits rebound | High: revenues for compensation | High: selection cheap options | High: negotiations target uniform price or linking ETSs | |
| Medium: incomplete coverage, rebound, incompliance | Medium: no revenues for compensation | Low: no selection of cheap options | Low: uncountable technologies/products, favour national industries | |
| Medium: incomplete coverage, rebound | Low: favours house and car owners | Low: no selection of cheap options, use of public budget | Low: heterogenous budgetary capacity, favour national industries | |
| Low: little emissions reduction, rebound | High: voluntary choice | Medium: low cost | Low: moderated by cultural norms and consumer habits | |
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