Policies and measures

Abstract

This chapter is divided into two sections. In Sect. 7.1, international policies and measures are discussed. First, a theoretical comparison of cap and trade and carbon tax under uncertainty is described. Then reflecting the global paradigm shift from a top-down to a bottom-up approach since 2009 (COP15), the focus is mainly on policies under the pledge and review regime such as a sectoral approach. Other policies that have indirect effects for mitigation such as trade liberalization of climate friendly goods and services, green growth including removal of environmentally harmful subsidies, and financial assistance are also discussed. In Sect. 7.2, the discussion focuses on domestic policies. Firstly, the author compares economic incentive and direct regulations, then analyzes specific policies that have been actually introduced into several countries or regions. They are the EU Emissions Trading Scheme (EU ETS), cap and trade and voluntary measures in Japan, and policies to promote renewable energy (Feed-in Tariff). © Springer-Verlag London 2012.