Scientists generally conclude that rising concentrations of greenhouse gases are warming the Earth's climate. Concern about the damage that might result has led policymakers and analysts to consider policies designed to restrict emissions of those gases. One type of policy, a cap-and-trade program, could minimise the cost of achieving a limit, or cap, on emissions by allowing market forces to determine where, how, and to some extent when the cuts in emissions necessary to achieve the cap would be made. This new book examines the potential effects of features that would help manage allowance prices, and thus the cost of complying with a cap-and-trade program.

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