Comparison Of Cap And Trade And Carbon Tax Strategies: Implications In Canadian Policy Context
Abstract
This individual research project evaluates relative CO2e emissions reduction potential of "Cap and Trade" and "Carbon Tax" policy mechanisms in a Canadian (national and provincial) context. The major objectives in the context of this undertaking are: To identify the characteristics and differences of both, "Carbon Tax" and "Cap and Trade" mechanisms for CO2e emissions reduction. To identify examples of where these two mechanisms have been implemented and document the implementation experience, results and critical implementation factors. To develop a strategic performance evaluation matrix for comparing Cap and Trade with Carbon Tax. Both approaches were analyzed in the context of their relative performance in effectively reducing CO2e emissions. The conclusion of the research was that neither “Cap and Trade” nor "Carbon Tax" but a broad mix of instruments and an integrated multi-sectoral – cross-sectoral policy framework at local and regional scales may provide comprehensive and direct CO2e emissions reduction strategy.
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Citation
Khan, Y. M. (2010). Comparison Of Cap And Trade And Carbon Tax Strategies: Implications In Canadian Policy Context (Unpublished report). University of Calgary, Calgary, AB.