Verde S., Acworth W., Kardish C., Borghesi S. (2020) “Achieving Zero Emissions Under a Cap-And-Trade System”, Florence School of Regulation Policy Brief, Issue 2020/26, European University Institute, Florence.
Highlights
• Current estimates of marginal abatement costs suggest that achieving zero or net-zero emissions requires much higher carbon prices than ever experienced.
• Depending on how well they are addressed, competitiveness and distributional effects de facto pose a limit to the levels that carbon prices can reach.
• Steeply growing carbon prices and related side effects call for packages of accompanying measures and policies.
• This policy brief presents multiple policy options to keep carbon prices in check and achieve zero emissions in time.