Carbon pricing tools as an element of the state regulation system
DOI:
https://doi.org/10.5281/zenodo.14970859Keywords:
public policy, carbon, carbon emissions, financial incentives, pricing instrumentsAbstract
Carbon pricing tools play a crucial role in the system of state regulation due to their ability to facilitate effective management of greenhouse gas emissions and promote sustainable economic development. These instruments create economic incentives for enterprises to reduce their environmental footprint, which is essential for achieving global climate policy objectives. The primary carbon pricing mechanisms include carbon taxes and emissions trading systems, both of which are used to limit CO2 and other greenhouse gas emissions.
Objective: This article aims to systematize carbon pricing instruments as a fundamental component of the state regulation system in the economy.
Methods: The study employs several research methods, including analysis, synthesis, and abstraction.
Results: The research identifies and systematizes key carbon pricing tools that play a pivotal role in state regulation. Specifically, the study examines carbon taxes, emissions trading systems, carbon border regulation/adjustment mechanisms, subsidies and tax incentives, as well as carbon offset mechanisms. The study also highlights the primary challenges associated with their implementation, such as administrative barriers, inconsistencies in international policies, and the potential economic burden on enterprises. At the same time, the findings underscore the potential of these instruments in fostering environmentally friendly technologies and enhancing emission reduction efficiency.
Conclusion: Carbon pricing tools are an essential element of effective climate policy, requiring a comprehensive approach to state regulation. They contribute to the fulfillment of international commitments to reduce carbon emissions while fostering an innovative and resilient economy capable of adapting to the challenges of global climate change. The primary significance of these instruments lies in their ability to align economic interests with environmental responsibility, ensuring long-term sustainable development.
