We analyze how conventional emissions trading schemes (ETS) can be modified by introducing “clean-up certificates” to allow for a phase of net-negative emissions. Clean-up certificates bundle the permission to emit CO2 with the obligation for its removal. We show that demand for such...

This paper examines the effectiveness of two carbon pricing measures, i.e., carbon tax and emission trading scheme (ETS), in reducing carbon emissions based on 133 countries’ annual panel data from 1990 to 2014. We demonstrate that carbon pricing system effectively reduced carbon emissions in...

The two broad carbon-reducing policies, carbon tax and cap-and-trade, have been implemented at various national and sub-national levels. This paper examines the relationships between emissions-reducing policies and their effect on the country's economic growth (GDP) using carbon tax and CO2...