Theory of Emissions Trading and Taxation

Authored by: Akira Maeda

The Routledge Handbook of Environmental Economics in Asia

Print publication date:  March  2015
Online publication date:  February  2015

Print ISBN: 9780415656450
eBook ISBN: 9781315746289
Adobe ISBN: 9781317597872

10.4324/9781315746289.ch8

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Abstract

One of the most significant goals of environmental policy is the reduction of emissions of environmentally affective substances such as air or water pollutants and greenhouse gases (GHG). To attain this goal, policy instruments have been devised in economic theory and are currently being implemented in various ways in many developed countries and regions. Some instruments rely on the behavior of economic agents in economic activities and thus are called market-based instruments (MBIs). These include environmental taxes, subsidies, and tradable permit systems.

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