Lesson from EU: We Can't Finesse Nature With Accounting Tricks

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Practical experience with carbon markets in the European Union raises a critical question: Will such systems ever work?  Backers of these markets, which involve setting limits on greenhouse gases and then allowing companies to buy and sell emission permits, see the approach as one of the cheapest and most effective ways to control the gases in advanced economies. Yet in Europe, which created the world’s largest carbon trading market three years ago, early evidence suggests the whole approach could fail.  

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