Do carbon offsets offset carbon?

In this paper the authors develop and implement a new method for identifying ‘wasted’ subsidies, and use it to provide systematic evidence on the misallocation of carbon offsets in the Clean Development Mechanism, the world’s largest carbon offset programme.


What does an EU Carbon Border Adjustment Mechanism mean for the UK?

There has been a resurgence in the debate around Carbon Border Adjustment Mechanisms (CBAMs) and the role they may play in preserving the effectiveness of climate action in high ambition countries. This report explores how the European Union’s CBAM, announced to come into force by the end of 2022, might affect the UK.


The distributional effects of a carbon tax: The role of income inequality

The fact that a carbon tax is an environmentally and economically efficient instrument for reducing emissions is often highlighted, but the equity story is also of importance. This paper addresses the question of the distributional burden of a carbon tax across different income groups and the role played by income inequality.



Emissions trading with transaction costs

The authors of this paper develop a theoretical model of emissions trading in the presence of transaction costs, calibrating the model to annual transactions and compliance data in the European Union emissions trading scheme over its second phase.