Poliey analysis for CO2 emission reduction has accumulated a rich background world-wide.
Although controversial, the analysis concluded that there are advantages to using market-
oriented policy instruments, especially taxation. However, it also demonstrated the adverse
implications for economic growth, employment and competitiveness. In its early stages, the
analysis considered the recycling of CO2-related tax revenues. The priority domain for
recycling depended on the objectives of the analysis. For instance, the maximisation of …