Carbon taxes do work. When we don't carve out exceptions.
Carbon pricing has successfully reduced GHG emissions internationally:
- The US has two separate cap-and-trade systems that are reducing emissions.
- The UK is on track to fully phase out coal; its carbon tax is cited as the primary driver of this phase-out.
- The European Union’s Emissions Trading System, since its inception, is responsible for between one third and one half of the region’s emissions reductions.
- Sweden has the world’s highest carbon tax; ten years after bringing it in (2001), emissions were as much as 25% lower than they would otherwise be.