Karteikarten: Introduction to Carbon Pricing and Emissions Trading — 10 Karten

Carbon tax rate — definition?

Fixed government price per ton of emissions.

Emission trading system (ETS) — role?

Creates a compliance market using tradable allowances.

Cap-and-trade — mechanism?

Sets a declining permit cap and allows trading.

Price signals — purpose?

Influence investment and abatement decisions.

Major ETS programs — examples?

EU ETS, California, China, Swiss ETS, others.

Allowances — unit?

Typically one metric ton of CO2 equivalent.

Fungibility — ETS permits?

Permits are not automatically interchangeable across markets.

Declining cap — effect?

Increases permit scarcity and prices.

Linking ETS markets — benefit?

Creates economies of scale and broader abatement options.

Carbon taxation — key factor?

Tax rate, demand elasticity, and cost pass-through.