carbon emission
CLIMATE CHANGE AND POLICY
Contents
Carbon Cap and Trade
Carbon Offsets
Carbon Taxes
Clean Development Mechanism
Climate Change and Food Situation
Dealing with the Uncertainty about Climate Change
Double Dividend
Economics of Forest Carbon Sequestration as a Climate Change Mitigation Strategy
Intergovernmental Panel on Climate Change (IPCC)
International Climate Treaties and Coalition Building
Carbon Cap and Trade
G Wagner, Environmental Defense Fund, New York, NY, USA; Columbia University’s School of International and Public Affairs,
New York, NY, USA ã 2013 Elsevier Inc. All rights reserved.
Glossary
Banking Saving carbon allowances for future use within a cap-and-trade system, decreasing emissions earlier than mandated by the cap.
Borrowing Using carbon allowances from future years to comply with earlier emissions reduction goals, increasing emissions in early years and leading to steeper reductions later.
Carbon allowance A permit to emit one metric ton of carbon dioxide or carbon dioxide equivalent greenhouse gas emissions.
Leakage Carbon emissions moving from under a cap to outside the system due to differential incentives, increasing total emissions in the process.
Linkage Formal or informal connection across cap-andtrade systems to allow use of allowances generated in one jurisdiction for compliance in another; has the effect of equilibrating prices assuming full fungibility.
Cap and trade is just this: a cap on total emissions and a system that allows trading to achieve that limit as costeffectively as possible (Figure 1). It creates a market and a price on emissions, where there typically was none before.
This article surveys cap and trade for carbon dioxide and greenhouse gases more broadly: how it works in theory, how it compares to other policy approaches, how it ought to be designed given particular objectives, and how it has been applied in practice.
Encyclopedia of Energy, Natural Resource and
Contents
Carbon Cap and Trade
Carbon Offsets
Carbon Taxes
Clean Development Mechanism
Climate Change and Food Situation
Dealing with the Uncertainty about Climate Change
Double Dividend
Economics of Forest Carbon Sequestration as a Climate Change Mitigation Strategy
Intergovernmental Panel on Climate Change (IPCC)
International Climate Treaties and Coalition Building
Carbon Cap and Trade
G Wagner, Environmental Defense Fund, New York, NY, USA; Columbia University’s School of International and Public Affairs,
New York, NY, USA ã 2013 Elsevier Inc. All rights reserved.
Glossary
Banking Saving carbon allowances for future use within a cap-and-trade system, decreasing emissions earlier than mandated by the cap.
Borrowing Using carbon allowances from future years to comply with earlier emissions reduction goals, increasing emissions in early years and leading to steeper reductions later.
Carbon allowance A permit to emit one metric ton of carbon dioxide or carbon dioxide equivalent greenhouse gas emissions.
Leakage Carbon emissions moving from under a cap to outside the system due to differential incentives, increasing total emissions in the process.
Linkage Formal or informal connection across cap-andtrade systems to allow use of allowances generated in one jurisdiction for compliance in another; has the effect of equilibrating prices assuming full fungibility.
Cap and trade is just this: a cap on total emissions and a system that allows trading to achieve that limit as costeffectively as possible (Figure 1). It creates a market and a price on emissions, where there typically was none before.
This article surveys cap and trade for carbon dioxide and greenhouse gases more broadly: how it works in theory, how it compares to other policy approaches, how it ought to be designed given particular objectives, and how it has been applied in practice.
Encyclopedia of Energy, Natural Resource and