•Jan 01, 2025
Pollution markets can power economic growth and improve environmental quality: Michael Greenstone
Michael Greenstone talks to Indian Express on balancing climate policy and addressing CO₂ pricing’s impact on vulnerable communities.
Via Indian Express
As toxic air continues to choke Indian cities year after year, researchers at the Energy Policy Institute at the University of Chicago (EPIC) have found promising evidence that market-based solutions like emissions-trading schemes can help industries slash pollution without hampering economic growth.
An emissions-trading scheme works by setting a cap on total emissions and allows companies to buy and sell emission permits. This creates a financial incentive for businesses to cut emissions in cost-effective ways, either by upgrading equipment, switching to cleaner fuels, or investing in innovative low-carbon technologies.