Market Mechanisms to reduce emissions
Market-based mechanisms such as carbon pricing and emissions trading are meant to create market signals that can reduce GHG emissions by encouraging shifts in long-term investment and accelerating the deployment of technologies. Market-based policy can be designed to be sector-specific or economy-wide, with cost, stringency, and distributional impacts around revenue options among pertinent decisions.
The boxes below allow you to filter and view specific market-based policy options, each of which includes a brief description, design considerations, U.S. experience, additional resources, and related policies.
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