Abstract
In principle: the higher a CO2 tax (or climate-friendly subsidy), the more sustainable the consumer. However, it is a misconception to think that this principle also applies to an emissions trading system (ETS). In an ETS, the rate of emissions reduction is not determined by the level of the CO2 price, but by the speed at which the emission ceiling decreases. The CO2 price then ensures an optimal distribution of emission reduction options below the emission ceiling: the market price shows at what cost emissions can be reduced and thus prevents unnecessary investments in relatively expensive reduction technology. Therefore: the lower the emissions ceiling in an ETS, the more sustainable the consumer.
Translated title of the contribution | Carbon Pricing and Sustainability |
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Original language | Dutch |
Title of host publication | Privaatrecht 2050 |
Subtitle of host publication | De weg naar ecologische duurzaamheid |
Editors | Bram Akkermans, Björn Hoops, Elsabe van der Sijde, Benjamin Verheye |
Place of Publication | Brugge |
Publisher | Die Keure (B&E) |
Pages | 67-75 |
Number of pages | 9 |
ISBN (Print) | 9789048644254 |
Publication status | Published - 15-Nov-2022 |
Keywords
- private law
- sustainability
- emissions trading
- carbon pricing