Knowledge Tree
cap-and-trade systems
Also known as: cap-and-trade system
Facts (24)
Sources
Designing Carbon Pricing Policies Across the Globe link.springer.com 17 facts
measurementThe existence of a cap-and-trade system in a country is not significantly related to an expert's recommendation to implement either a carbon tax or a cap-and-trade system (χ2-tests: p > 0.100).
claimExperts who recommend more stringent global emission reduction targets tend to recommend carbon taxes over cap-and-trade systems.
measurement50% of experts from Oceania recommend cap-and-trade systems, showing lower support for carbon taxes.
measurementIn the multivariate analysis, the impact of the global emission reduction target on experts' recommendations for cap-and-trade systems is statistically insignificant.
measurementExperts who favor cap-and-trade systems show a positive correlation with recommending subsidies for renewable energy (p < 0.029).
measurementExperts who recommend cap-and-trade systems tend to favor grandfathering or tax cuts for firms more often than those who do not (p < 0.080).
measurementIn the univariate analysis, the global emission reduction target has a strongly significant negative impact on experts' recommendations for cap-and-trade systems.
claimApproximately 10% of surveyed experts recommend using cap-and-trade systems for larger emitters or energy-intensive industries, while recommending a carbon tax for smaller emitters or sectors such as agriculture and small-to-medium-sized firms.
claimExperts from China exhibit a clear preference for cap-and-trade systems that include a price collar.
claimEconomists and non-economists show no difference in their likelihood to recommend carbon taxes relative to other climate policy instruments, though economists recommend cap-and-trade systems less frequently than non-economists.
claimAsian experts are nearly evenly split in their preference between carbon taxes and cap-and-trade systems.
claimExperts from Germany and Spain recommend cap-and-trade systems more frequently than experts from other European countries.
claimExperts from Germany and Spain recommend cap-and-trade systems more frequently than the general European average.
claimSupport for carbon taxes over cap-and-trade systems is significantly higher in countries with high GDP per capita, while in poorer countries, cap-and-trade systems are favored at least as often as carbon taxes.
claimExperts' recommendations for carbon tax and cap-and-trade systems are strongly negatively related, as indicated by the correlation matrix in the study.
claimExperts who recommend carbon taxes tend to have opposing views on revenue usage compared to experts who favor cap-and-trade systems, with statistically significant differences in cross-correlations.
measurementExperts who responded to the second invitation in the study were more likely to recommend cap-and-trade systems over other climate policy instruments compared to those who responded to the first invitation (36% vs. 27%; χ2-test: p = 0.020).
How the “Scientific Consensus” on Global Warming Affects ... heritage.org Oct 26, 2010 2 facts
claimUnder a cap-and-trade system, emitters of greenhouse gases, primarily carbon dioxide from fossil fuel production, are required to obtain permits for each ton of CO2 emitted, with the price of these permits determined by supply and demand.
claimThe Obama Administration advocated for a cap-and-trade system, CO2 regulations, renewable electricity mandates, and government spending for "clean-energy" sources to favor renewable energy.
Carbon Pricing as a Climate Policy Instrument: Global Lessons ... journal.idscipub.com Jul 31, 2025 2 facts
claimBoth carbon taxes and cap-and-trade systems can be effective when complemented by redistributive mechanisms, strong institutions, and integration with broader policy frameworks.
claimBoth carbon taxes and cap-and-trade systems can be effective when complemented by redistributive mechanisms, strong institutions, and integration with broader policy frameworks.
The Power of Change: Innovation for Development and Deployment ... nationalacademies.org 2 facts
claimMost studies on renewable energy policies, including those by Fischer and Newell (2008), Fischer et al. (2013), Palmer and Burtraw (2005), Palmer et al. (2010), and Tuladhar et al. (2014), agree that carbon taxes or cap-and-trade systems reduce greenhouse gas emissions more cost-effectively than Renewable Portfolio Standards (RPSs).
perspectiveWhen a binding emissions trading system effectively reflects pollution costs, states and regions should evaluate replacing Renewable Portfolio Standards (RPSs) with a cap-and-trade system combined with more modest, targeted incentives for learning-by-doing.
How governments address climate change through carbon pricing ... discovery.researcher.life Apr 15, 2025 1 fact
claimThe review article published in Climate Policy categorizes carbon pricing mechanisms into three main types: Carbon Taxes, Cap-and-Trade Systems, and Hybrid Approaches.