This paper informs the discussion of carbon price policies by examining the potential for adverse impacts on domestic industries, with a focus on detailed sector-level analysis. The assumed policy scenario involves a unilateral economy-wide $10/ton CO2 charge without accompanying border tax...

In recent years, it has become increasingly clear that China’s rapid economic development has come at a significant environmental cost. Pollution problems are now a source of serious public concern, at times even social unrest. The government has responded with an ambitious reform program that...

We compare several emissions reduction instruments, including quantity policies with banking and borrowing, price policies, and hybrid policies (safety valve and price collar), using a dynamic model with stochastic baseline emissions. The instruments are compared under the design goal of...