Review article
https://doi.org/10.37798/2005544442
EMISSION TRADING AS A WAY OF DECREASING EMISSIONS OF GREENHOUSE GASSES
Mario Tot
Abstract
The main idea of emission trading is closely related to the externalities. An externality occurs in economics when the actions of one consumer or firm affects the well being or production of another consumer or firm with whom there is no direct business relationship. Many of the most important externalities are concerned with pollution and environment. The goal is to include externalities (i.e. related costs/benefits) into market mechanisms.Emission trading allows cheaper compliance with emission standards for all sectors concerned compared to the individual sector obligation. Emission trading has become even more important after it was listed as a Kyoto Protocol mechanism. This paper explains the main idea of the emission trading.
Keywords
externalities; emissions trading; greenhouse gases; Kyoto Protocol
Hrčak ID:
345204
URI
Publication date:
15.7.2005.
Visits: 64 *