Revisiting instrument choices for low-carbon transitions: Carbon tax, emission trading, and resource tax

Key Points

• Emphasis on effective instrument choices fosters low-carbon transitions, highlighting the importance of economic mechanisms.
• The analysis reveals that incorporating a carbon tax and emission trading could enhance emissions reductions by significant margins.
• Assessment involves evaluating the potential impacts of resource tax and alternative instruments on sustainable development goals.
• The findings underscore the urgency of policy adaptations to successfully navigate low-carbon transitions and meet climate targets.