Carbon-based tax penalties on highemission
fuels and energy sources, suc
as gasoline and coal, are more frequentl
implemented. Also, increasingly seen
are emissions trading systems (ETS)
whether international, such as the EU
ETS, sub-national such as the provincial
trading systems being developed in
China, or municipal, such as Tokyo’s capand-
trade program. While cap-and-trade
systems are not technically taxes, they
have been included in this Index as they
have become the de-facto alternative
carbon penalty to carbon tax.