Drawing on economic theories from the module as well as evidence from the articles referenced below, outline the strengths and limitations of carbon taxes and emission trading schemes as tools aiming to reduce carbon emissions, and the challenges arising in their implementation.

Related articles

Kaufman, N. (2016) 'Carbon Tax vs. Cap-and-Trade: What's a Better Policy to Cut Emissions?', World Resources Institute, 1 March.

Shrikanth, S. (2020) 'Carbon credit markets still have a way to go', Financial Times, 3August.

Hart, P. and Walsh, J. (2020) 'Emissions fell due to COVID, exposing the failures of phoney climate fixes', Food and Water Watch, 29 March.