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Different carbon policies will impose varying costs on nations

Different climate change policies are favoured by different countries due to the relative costs these policies impose. These costs depend on a country’s current emissions intensity.

Modelling from the ANU indicates that an international carbon pricing system such as emissions trading would result in emissions-intensive countries paying a higher total cost for emissions reduction.

In contrast, a Kyoto-style agreement where all countries reduce emissions by the same percentage means that these high carbon emitters would pay lower total costs for reducing their emissions.

Read more at Australian National University

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