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The Fiscal Incentive of GHG Cap and Trade: Assessing Permit Costs and Abatement in Developed Countries

This working paper by Jørgen Juel Andersen and Mads Greaker explores the fiscal implications of greenhouse gas (GHG) cap-and-trade systems, focusing on the potential issues of permit pricing and resulting abatement levels in developed countries. The authors analyze whether permits are priced too low, which could lead to insufficient reductions in emissions. Supported by the Research Council of Norway and the University of Oslo, their findings emphasize the importance of setting appropriate permit prices to enhance environmental effectiveness and economic efficiency.

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The Fiscal Incentive of GHG Cap and Trade: Assessing Permit Costs and Abatement in Developed Countries

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  1. CREE Working Paper 08/2014 The Fiscal Incentive of GHG Cap and Trade: Permits May Be Too Cheap and Developed Countries May Abate Too Little Jørgen Juel Andersen and Mads Greaker The CREE Centre acknowledges financial support from The Research Council of Norway, University of Oslo and user partners. ISBN: 978-82-7988-177-3 ISSN: 1892-9680 http://www.cree.uio.no

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