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Effective carbon rates: Pricing CO2 through taxes and emissions trading systems


This detailed report from the Organisation for Economic Co-operation and Development presents the first comprehensive analysis of the extent to which countries use carbon prices. Chapter 2 (6 pp) discusses why carbon prices are an effective and low cost policy tool, exploring the environmental effectiveness of carbon prices and why they allow countries to reach their emissions targets in the cheapest possible way, as well as looking at the economic benefits of carbon pricing. Chapter 4 presents the results of the analysis of effective carbon rates in 41 (mainly OECD) economies.

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