Climate policy instruments and their effectiveness, as seen by economists

In terms of economic instruments, the classic tools are :

• prices and taxes, which can be applied to markets (1) that will play the natural game of the players or (2) that will be regulated to force compliance with pre-established standards if natural incentives are insufficient;

• (3) in the longer term, information and education, which will bring about changes in behavior, and R&D, which will bring about new technologies and their potential.

More specifically for the climate, this will take the form of :

• in taxes (e.g. "carbon tax") and emissions permit markets for the "market" vision – with variations depending on whether the price is free, with a floor, or with a ceiling;

• or, in the case...