What are some alternatives to carbon pricing?

What are some alternatives to carbon pricing?

There are several alternatives to carbon pricing, such as regulatory approaches, subsidies for renewable energy, and cap-and-trade systems.

Can you explain how cap-and-trade works?

Sure! Cap-and-trade sets a limit on emissions and allows companies to buy and sell permits to emit a certain amount, creating a market for emissions.

What are the pros and cons of using subsidies instead?

Subsidies can encourage renewable energy adoption and lower costs, but they may also lead to government spending and market distortions.

Are there any successful examples of these alternatives in action?

Yes, countries like Sweden have successfully implemented carbon taxes, while the EU has a cap-and-trade system that has shown effectiveness.