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Towards A Common Carbon Currency: Exploring The Prospects For Integrated Global Carbon Markets

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Executive Summary

The causes and consequences of climate change have forced the global community to curb emissions of greenhouse gases. The scale of this challenge calls for use of policy tools that combine environmental and economic efficiency. Environmental policy gradually has recognized the benefits of moving from command and control policies toward leveraging the advantages of competitive markets. Emissions trading has been adopted successfully to control emissions of Sulfur Dioxide (SO2) and other pollutants in the United States. Due to their physical nature, greenhouse gases lend themselves perfectly to global emissions trading.

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