Carbon Pricing and Emissions Trading quiz

More questions about Carbon Pricing and Emissions Trading

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1. 1 Easy

   Whose carbon market covers the most emissions?

   Answer: China's

   Why: China's market began in 2021 with power plants and added steel, cement and aluminium in 2025.

2. 2 Medium

   Who gave his name to taxes on harmful side effects?

   Answer: Arthur Pigou

   Why: Pigou proposed taxing harmful side effects back in 1920, in his book The Economics of Welfare.

3. 3 Hard

   Which term means an offset's cuts would not have happened anyway?

   Answer: Additionality

   Why: Permanence is a separate test: additionality asks if the credit money made the cut happen, permanence if it lasts.

4. 4 Easy

   Which principle does a carbon tax put into practice?

   Answer: Polluter pays

   Why: The OECD set out the polluter pays principle for its member countries in 1972.

5. 5 Medium

   What gas did the world's first big cap-and-trade market limit?

   Answer: Sulfur dioxide

   Why: The US Acid Rain Program set out to halve power plant sulfur dioxide from 1980 levels by 2010.

6. 6 Hard

   What bill brings Swiss residents their CO2 levy money back?

   Answer: Health insurance

   Why: Everyone gets the same sum back whatever they burn, so households using little fossil fuel can receive more than they paid.