What is a Carbon Price ?

• Goal is to create a change in an economy
  • market can differentiates b/w goods & services based on carbon footprints
• A carbon price can be established explicitly
  • through carbon taxes, emissions trading, or carbon purchase regimes
• or implicitly
  • through regulations, emissions standards, Best Available Control
    Technology (BACT) requirements
• Choice of specific policy tools depends on:
  • a country’s national circumstances
  • the characteristics of affected economic sectors

Carbon Price Implications