#LearnSustainability: Carbon pricing

The carbon pricing is, according to economists, the most effective way to encourage countries and organizations to reduce their emissions of greenhouse gases. This measure helps assigning the damage caused by emissions to the responsibles and the ones that can reduce such emissions.

There are two types of carbon pricing: the emission rights trading regime (ETS) and carbon taxes. An ETS limits the total emissions but allows companies with low emissions to sell their rights to other companies. A carbon tax simply means a tax on emissions of greenhouse gases.

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