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Title of Journal: Environ Econ Policy Stud

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Abbravation: Environmental Economics and Policy Studies

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Springer Japan

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1867-383X

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New and old marketbased instruments for climate c

Authors: Sebastian R Goers Alexander F Wagner Jürgen Wegmayr
Publish Date: 2010/06/17
Volume: 12, Issue: 1-2, Pages: 1-30
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Abstract

We review and examine three marketbased instruments to address the challenge of climate change emission trading emission taxes and hybrid instruments Our main contribution is the illustration and comparison of these instruments using recent results from theoretical research and practical policy experience Hybrid policies that aim to combine taxes and permits emerge as a promising way forward An additional contribution is that we also comment on two other related concepts namely innovation strategies and prediction markets For the former we show that to make economic sense the much publicized AsiaPacific Partnership on Clean Development and Climate has to rely on the same basic tool as the other instruments namely relative prices For the latter we discuss how prediction markets can complement traditional scenario analysis by experts They are likely to improve the practical implementation of all previously discussed methods


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