1. Can emissions trading system reduce
emissions more effectivethan emissions
tax?
Presented by Yanpeng Li 366331

2. Background
• Emissions Trading
• Emissions Tax

3. Effectivenessto reduce emissions
• Total reduction guaranteed
• Profit driven
• New technology application

4. • A cap-and-trade system incentivizes reductions in
carbon emissions where it can be done most
efficiently
• An effective cap-and-trade system helps reduce
economic costs caused by carbon emissions
• Cap-and-trade is more flexible in the
interconnected global economy
Emissiontrading systemis more
economicalthan emissiontax

5. Fairnesstoproducers:Isacap-and-tradeapproachmore
fairtoproducersthanacarbontax?
• Vulnerable groups
• Rewards "efficient"-polluters while
punishing "non-efficient" polluters

6. Counterarguments
• Emission trading would damage economy while
carbon tax would not
• Emissions trading doesn't ensure reductions in local
emissions
• Complicated cap-and-trade system requires costly
administration

7. Conclusion