A Taxonomy of Instruments to Reduce Greenhouse Gas Emissions and their Interactions

This paper reviews alternative (national and international) climate change mitigation policy instruments and interactions across them. Carbon taxes, cap-and-trade schemes, standards and technology-support policies (RD ii) dynamic efficiency, which implies an efficient level of innovation and diffusion of clean technologies in order to lower future abatement costs; iii) ability to cope effectively with climate and economic uncertainties. Multiple market failures and political economy obstacles need to be addressed in order to meet these criteria. In this regard, carbon taxes or cap-and-trade schemes appear to perform better than alternatives. However, their cost-effectivenes can be enhanced through targeted use of other instruments. There is therefore room for climate policy packages. Une taxonomie des instruments de reduction des emissions de gaz a effet de serre et de leurs interactions Cet article passe en revue les differents instruments de politique economique (nationaux et internationaux) envisageables dans la lutte contre le changement climatique, ainsi que leurs interactions. Taxes carbone, marches de permis negociables, standards et politiques de soutien au progres technique (RD ii) l'efficience dynamique, impliquant un niveau efficient d’innovation et de diffusion des technologies propres permettant de reduire les couts futurs de reduction des emissions ; iii) la capacite a s’adapter aux incertitudes climatiques et economiques. De multiples echecs de marche et obstacles relevant de l’economie politique doivent etre surmontes pour verifier ces criteres. De ce point de vue, il apparait que les taxes carbone et les marches de permis negociables sont plus performants que les alternatives. Neanmoins, leur efficacite cout peut etre amelioree par un usage cible des autres instruments. Il y a donc matiere a la mise en place d’un eventail de politiques.

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