The London Accord - Cap-and-Trade Versus Carbon Tax: a Comparison and Synthesis
Issue(s): Creating Frameworks ,
Climate Change ,
Why we need Force for Good companies ,
How to be a Force for Good companyTag(s): CapAndTrade ,
Carbon ,
CarbonTax ,
Emissions ,
Green ,
GreenHouseGases ,
Investment ,
Investors ,
SociallyResponsibleInvestment ,
TheLondonAccord
Summary
In order for the true cost of carbon to be represented in the market, its effects on the environment must be captured like any other externality, and subject to the same laws of supply and demand, setting a dynamic price of emissions in business.This article by the Z/Yen Group examines the two primary market mechanisms available – cap-and-trade schemes, and carbon tax. For more information go to www.london-accord.co.uk