Priya Nehria | 2026 I.S. Symposium
±·²¹³¾±ð:ÌýPriya Nehria
°Õ¾±³Ù±ô±ð:ÌýA Comparative Analysis of Pigouvian Taxes and Cap- and-Trade Systems in Regulating Carbon Emissions
²Ñ²¹Âá´Ç°ù:ÌýBusiness Economics
²Ñ¾±²Ô´Ç°ù:ÌýStatistical & Data Sciences
´¡»å±¹¾±²õ´Ç°ù:ÌýJancy Liu
This project provides a comparative analysis of two primary market–based environmental policy instruments, Pigouvian carbon taxes and cap– and – trade systems, in regulating carbon emissions. Grounded in the theoretical framework of marginal abatement cost and marginal damage functions, this study evaluates how price – based and quantity – based regulatory approaches internalize negative externalities and move markets toward socially efficient emission levels. Integrating foundational economic theory, with an extensive review of empirical literature examining uncertainty, growth dynamics, institutional design, and policy implementation across countries. The results indicate that while theoretical models predict equivalence under perfect conditions, empirical outcomes are heavily dependent on economic structure and policy design.
Given the current political and economic climate of our world today, understanding pollution and carbon efficiency is extremely important for the future of our world. A significant source of inspiration for this project came from my experience studying abroad in Switzerland and seeing how seriously environmental conservation was implemented throughout everyday life.
Posted in Symposium 2026 on May 1, 2026.
