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Reports of the Demise of Carbon Pricing are Greatly Exaggerated
Policy Brief

Abstract

Politicians in a number of jurisdictions with cap-and-trade markets for greenhouse gas (GHG) emissions or carbon taxes have argued that the evidence is in and the conclusion is clear: Carbon pricing doesn’t work. A number of journalists and environmental groups have jumped on the bandwagon, amplifying a misguided message.

A better understanding of how markets and price mechanisms work might change their minds — and the conversation — on the benefits of carbon pricing.

 

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