Furthermore, a high degree of uncertainty persists over a number of economic variables, including the size of fuel reserves, the size of stranded assets, the future direction of climate policy, the pace of innovation in the renewables sector, and demand risk. [...] In particular, a carbon tax sets a price on carbon dioxide emissions and allows the market to determine the amount of emissions reductions, while an ETS sets the amount of emissions reductions and allows the market to determine the price (Fank, 2014). [...] The modest increase in global coverage can be attributed to the expansion of the scope of certain policies and the introduction of new instruments, as well as the fact that GHG emissions are declining in most countries that have implemented a carbon tax or ETS. [...] These include the carbon price, the scope of emissions covered, and the design features of the instruments, including the methods employed for the allocation of allowances and the availability of rebates. [...] The implementation of feasibility studies, legal frameworks, and international support is paving the way for these countries to potentially join the global carbon pricing landscape, indicating a potential shift in the geographical distribution of carbon pricing initiatives.
- Pages
- 22
- Published in
- Morocco
