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The Economics of Mitigation Options
Overview
Throughout the world, countries are adopting policies in an attempt to make
progress against climate change. As we have seen so far, positive actions
include increasing renewable energy generation and encouraging energy
efciency. The positive effects of these actions are reducing vulnerability to
energy price spikes, promoting development of local economies, and improv-
ing air quality. This chapter examines cap and trade as a policy tool, how the
carbon trading market works in an international arena, the need for global
action, and possible economic implications. It also examines