Permits to pollute can be bought too cheaply

Date: 01 August 2013

When the carbon price collapsed to below €3 in April this year, EU policymakers sought to prop up carbon prices by a deal that would delay the release of carbon allowances (known as “backloading”). This deal was agreed by the European Parliament in July, but has had little impact - prices still languish at around €4-5, well below the highs of €30, the sort of level economists consider necessary to bring emissions under control. Is this a disaster? Does it mean the death of the carbon markets, as many have suggested?

Cameron Hepburn Raphael Calel

Economics of Sustainability

Economics of Sustainability

Permits to pollute can be bought too cheaply


Type: paper

Calel, R. & Hepburn, C. (2013). 'Permits to pollute can be bought too cheaply'. The Conversation. Retrieved from: https://theconversation.com/permits-to-pollute-can-be-bought-too-cheaply-16492


View Document