Prospects for a transatlantic carbon market: what next after the US midterm elections?

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This paper considers key conditions and obstacles to future carbon trading across the Atlantic, including:

  • Is the only carbon trading system currently operating in the US the Regional Greenhouse Gas Initiative (RGGI) attractive enough to warrant a link to the EU ETS?
  • Will the Western Climate Initiative (WCI) or some of its participating jurisdictions, including California, become viable linking partners in coming years?
  • Is it likely that the Environmental Protection Agency (EPA) might implement some form of market-based instrument as it regulates greenhouse gas emissions?
Author: Michael Mehling, Andreas Tuerk and Wolfgang Sterk
Year: 2011
Type: Working papers
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