资源环境科技发展态势分析平台

In Carbon Pricing 201, we explore how carbon pricing in the electricity sector reduces emissions and affects generation mix, dispatch, and retail electricity prices. Like economy-wide carbon pricing, carbon pricing can be implemented in the electricity sector through a cap-and-trade program or a tax on carbon emissions. This explainer explores how each of these policies can be implemented, design considerations for policy effectiveness and fairness, and lessons from existing regional programs.