@article{Aldy:119095,
      recid = {119095},
      author = {Aldy, Joseph E. and Stavins, Robert N.},
      title = {Using the Market to Address Climate Change:  Insights from  Theory and Experience},
      address = {2011-11},
      number = {824-2016-54713},
      series = {CCSD},
      pages = {33},
      year = {2011},
      abstract = {Emissions of greenhouse gases linked with global climate  change are affected by diverse aspects of economic  activity, including individual consumption, business  investment, and government spending.  An effective climate  policy will have to modify the decision calculus for these  activities in the direction of more efficient generation  and use of energy, lower carbon-intensity of energy, and –  more broadly – a more carbon-lean economy.  The only  approach to doing this on a meaningful scale that would be  technically feasible and cost-effective is carbon pricing,  that is, market-based climate policies that place a  shadow-price on carbon dioxide emissions.  We examine  alternative designs of three such instruments – carbon  taxes, cap-and-trade, and clean energy standards.  We note  that the U.S. political response to possible market-based  approaches to climate policy has been and will continue to  be largely a function of issues and structural factors that  transcend the scope of environmental and climate policy.},
      url = {http://ageconsearch.umn.edu/record/119095},
      doi = {https://doi.org/10.22004/ag.econ.119095},
}