Terminating the Links Between Emissions Trading Programs

In an RFF blog post, the Nicholas Institute’s Billy Pizer and his co-author Andrew Yates discuss their new paper, which explores whether key choices about delinking and the handling of banked permits can improve market outcomes when links between carbon programs are-or are at risk of being-severed. In general, the analysis found that costs will rise when markets are delinked and prices can diverge even before delinking occurs.

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