CEDA's continuing mission is to promote intelligent analysis and vigorous debate on our biggest global challenges. The report aims to stimulate a better understanding of climate change issues. In particular, Robert Shapiro's paper examines the two most prominent strategies for reducing greenhouse gases: a carbon tax and cap-and-trade.
"Getting it right" when it comes to climate change, which means finding the balance between minimising climate change damage and reducing economic activity, requires a risk management approach.
The recommendations of CEDA's latest research collection, Climate Change - Getting it right, are that the most important tools for taking action are markets, carbon pricing, improvements in energy efficiency and investment in low emission technologies on an unprecedented scale.
Growth 59: Climate Change - Getting it right was produced for the International Counterparts Climate Change Conference hosted by CEDA in Sydney on 15-16 November 2008.
Robert Shapiro - A carbon tax: An alternative to carbon trading
Robert Shapiro's paper examines the two most prominent strategies for reducing greenhouse gases: a global system of national caps on the emissions and tradable permits, modelled on the Kyoto Protocol, and global, harmonised, net carbon based taxes. It finds that cap-and-trade systems can achieve their emissions targets year by year, but will introduce significant additional volatility in energy prices.