Price Floors in Emissions Trading to Reduce Policy Related Investment Risks: an Australian View

Frank Jotzo and Steve Hatfield-Dodds have a new CCEP working paper tiled: Price Floors in Emissions Trading to Reduce Policy Related Investment Risks: an Australian View, which is about the role of a price floor in a carbon emissions trading scheme in increasing the certainty of the investment environment. One of the downsides to emissions permit trading is that permit prices can be very volatile