päästöhintaa

Päästöhintaa, often translated as emissions price, refers to the cost associated with emitting greenhouse gases. This concept is central to environmental economics and climate policy, aiming to internalize the externalities of pollution. By assigning a monetary value to emissions, policymakers seek to incentivize polluters to reduce their carbon footprint. Several mechanisms are used to implement a päästöhintaa, primarily carbon taxes and emissions trading systems.

A carbon tax directly sets a price on each ton of carbon dioxide or equivalent greenhouse gas emitted. This predictable cost encourages businesses and individuals to find less carbon-intensive alternatives for energy, production, and consumption. The revenue generated from carbon taxes can be used for various purposes, such as funding renewable energy projects, providing tax rebates to citizens, or investing in climate adaptation measures.

Emissions trading systems, also known as cap-and-trade, set an overall limit or "cap" on total emissions. Companies are allocated or can purchase emission allowances, and those who emit less than their allowance can sell their surplus to companies that exceed theirs. This creates a market for emission allowances, where the price is determined by supply and demand. The cap is typically lowered over time, gradually reducing overall emissions. Both carbon taxes and emissions trading systems aim to achieve emission reductions at the lowest possible cost to society.