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The Political Economy of Carbon Securities and Environmental Policy

Research output: Working paperResearch


  • Wp 10-19

    Final published version, 279 KB, PDF document

  • Sarah Polborn, Denmark
The costs of the current suboptimal carbon abatement policy are likely in the range of 3 to 6 trillion 2005 US dollars. Using methods from the political economy of environmental policy, the paper develops a new carbon abatement policy instrument, carbon securities. A carbon security entitles its owner to a ?xed proportion of ex ante unknown total emissions. This creates an additional group of stakeholders on the side of the issue that has traditionally been underrepresented. The advantages over existing systems include an equilibrium carbon price closer to the social optimum, a more predictable environmental policy, and higher investment in abatement technology.
Original languageEnglish
Place of publicationAarhus
PublisherAarhus School of Business, Aarhus University, Department of Economics
Number of pages29
ISBN (Print)9788778824974
ISBN (Electronic)9788778824936
Publication statusPublished - 2010

    Research areas

  • Carbon abatement,, ,, , , ., Environmental policy, Global warming, Interest groups, Lobbying, Policy instrument design, Political process

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