Since the publication of the Stern Review, economists have started to ask more normative questions about climate change. Should we act now or tomorrow ? What is the best theoretical carbon price to reach long-term abatement targets? How do we discount the long-term costs and benefits of climate...

The purpose of this paper is to critically discuss the main advantages of introducing environmental regulation tools such as tradable permits markets. Current climate policies, the negotiations under way at the international level, and past experiences with emissions trading in the USA and...