PART IV: Policy Responses for Mitigation
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چکیده
• In the short term, using price-driven instruments (through tax or trading) will allow flexibility in how, where and when emission reductions are made, providing opportunities and incentives to keep down the cost of mitigation. The price signal should reflect the marginal damage caused by emissions, and rise over time to reflect the increasing damages as the stock of GHGs grows. For efficiency, it should be common across sectors and countries.
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PART IV: Policy Responses for Mitigation
Section 15.2 discusses the importance of designing policies in a way which creates confidence in the future existence of a robust carbon price, so that businesses and individuals can plan their investment decisions accordingly. The current use of emissions trading schemes is discussed in Section 15.3, and 15.4 focuses particularly on the issues around creating a credible carbon price in emissio...
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