Governments continue to face trade-offs between different objectives, such as increasing revenue, promoting community acceptance, and managing international competitiveness.
• Revenues from ETSs and carbon taxes are often used for specific purposes—almost 40% of the revenue is earmarked for green spending, and 10% is used to compensate households or businesses.
Both are seen as ways to increase support for these policies. • The revenue potential of ETSs and carbon taxes has become more relevant in light of increasing pressures on public budgets.
