1. (CARBON) PRICING AND ETS Economics and political economy

2. History of climate policy Rio 1992 Kyoto 1997, world divided in rich and emerging countries Copenhagen 2009, failure but 2° agreement and expected 100B$ by 2020 Cancun 2010, Durban 2011 Emerging countreis dont accept growth reduction by climate policy Paris 2015…..

3. ETS AND TAXES

4. The UCL TIAM model estimates an increase in the implied MAC CO2 from 0 now to 300$/t in 2050 Tax to stabilise 2° Acceptable if we use ETR reforms and recycle back the revenue in sound and effective ways

5. ETS price 7€ Efficient level or system failure? UK decision to support the EU ETS price by a carbon tax  goal 30€ E.g. carbon tax 10 with EU ETS price of 20 With 7€ price, now unfeasible from a political economy view to set a 23 carbon tax…

6. LANDFILL TAXATION UK

7. Introduced in 1996 First and maybe only tax to be set at the marginal damage cost level 7£/tonne …. Then increased at 82£ Economics vs political economy 7£ efficient 82£ has increased investments in the waste- recycling markets