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What's the best policy to cut car emissions?

Grattan Institute

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The Importance of Emissions Reduction at Low Cost

Most international schemes do provide manufacturers with some flexibility in how they meet their targets. If these are designed well, it can help to reduce the compliance burden faced by manufacturers without undermining emissions reductions from the scheme or increasing cost to consumers. A good path would be to allow some trading, so manufacturers who don't meet their targets in a given year could purchase credits from those manufacturers who overachieve.

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