A Review of Carbon Markets: EU-ETS, RGGI, California, the Clean Power Plan and the Paris Agreement
89 Pages Posted: 23 Aug 2016 Last revised: 22 Sep 2016
Date Written: September 21, 2016
This paper is a comprehensive historical, economic and legal review of the development of carbon markets, from the Acid Rain Program (US) to the European carbon market, the Regional Greenhouse Gas Initiative (RGGI) in the US, and the California/Quebec market. The impact of international climate negotiations, from Kyoto to Paris, on the evolution of carbon markets is discussed, as well as the potential for new US carbon markets created by the Clean Power Plan. I review the success and failures of these markets, and the political forces that constrained their development.
Keywords: carbon market, climate change, EU-ETS, RGGI, California, Kyoto, leakage, linkage
JEL Classification: F53, F64, H11, K32, K33, O19, Q4, Q54, Q58
Suggested Citation: Suggested Citation