Drawing on economic theories from the module as well as evidence from the articles referenced below, compare and contrast carbon taxes and emission trading schemes as carbon pricing mechanisms. How effective are these tools in achieving the net-zero emissions target and what are the challenges arising from their implementation?
Ramseur, J. L. (2021) ‘A Brief Comparison of Two Climate Change Mitigation Approaches: Cap-and-Trade and
Carbon Tax (or Fee)’, Congressional Research Service Report, January 12.
Barnes, A. (2021) ‘The Challenges and Prospects for Carbon Pricing in Europe’, OIES Paper NG 168.
Frank, C. (2014) ‘Pricing Carbon: A Carbon Tax or Cap-And-Trade?’, Brookings Planet Policy, August 12.
