Putting a price on carbon in global markets allows for the trade in carbon to be taxed. Carbon taxing is an effective economic tool to drive down countries’ emissions. Developing world countries are
This paper studies the impacts of renewable energy support policies on energy prices, fossil
fuel supply and thus carbon emissions from fossil fuels. Such supports are climate friendly if
the renewables are already competitive against fossil fuels. But if the renewables are not yet
competitive, the climate change impacts are often ambiguous and are sensitive to capacity
constraints of renewables production and to the fossil fuel market structure. If the renewables