What alternatives exist to carbon pricing?

What alternatives exist to carbon pricing?

There are several alternatives to carbon pricing, such as regulatory approaches, subsidies for clean 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 of carbon.

What are the pros and cons of using subsidies instead?

Subsidies can encourage renewable energy development but may lead to market distortions and dependency on government support.

How effective are these alternatives compared to carbon pricing?

Effectiveness varies; carbon pricing often provides clear economic signals, while alternatives can be more politically feasible.