The carbon tax introduced in British Columbia, Canada in 2018 is found to have had positive impacts on air quality. However the health co-benefits have been greatest in less polluted, less densely-populated and better-off neighbourhoods – highlighting that a carbon tax can exacerbate existing variations in pollution and health, where poorer areas are worse affected.
This working paper aims to shed light on the practical issues involved in policing carbon markets, such as new regulators with narrow authority and lack of legal precedent.
Estimating the effects of regulation when treated and control firms compete: a new method with application to the EU ETS
This paper presents a new method for estimating the effects of regulations when treated and control firms compete on the output market.
This commentary, originally published in Business Green, explores the crucial role of monitoring, reporting and verification for greenhouse gas removals.
This policy brief explores how the voluntary carbon market has the potential to pave the way to a net zero and sustainable economy and help close finance gaps in sectors that are critical to the transition.
In this paper the authors use Credit Default Swap (CDS) spreads to construct a forward-looking, market-implied carbon risk factor and study how, where and when carbon risk affects firms’ creditworthiness by examining whether firms’ exposure to carbon risk is reflected in the market prices of their CDS contracts.
To help nature-based offsets reach their potential for climate change mitigation, this working paper proposes an alternative approach to managing the issue of market leakage.
Response to the call for evidence made as part of the Independent Review of Net Zero commissioned by the UK’s Secretary of State for Business, Energy and Industrial Strategy.
Submission to the UK ETS Authority consultation, ‘Developing the UK Emissions Trading Scheme (UK ETS)’
This submission to the UK ETS Authority consultation on ‘Developing the UK Emissions Trading Scheme (ETS)’ provides evidence on implementing a net zero consistent ETS cap, Free Allocation policy, the expansion of the UK ETS to additional sectors, and incorporating greenhouse gas removal into the scheme.
Allocation, allocation, allocation! The political economy of the development of the European Union Emissions Trading System
This paper analyses the evolution of the EU ETS from a political economy perspective, emphasizing the interaction of economic principles and political interests at pivotal moments, and showing how each compromise changed the scope for future design choices.