BBC News - Energy committee attacks UK carbon price - 0 views
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Shoko Kuroda on 09 Jun 12Minimum price, therefore it is micro economics
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reducing uncertainty and creating incentives for investment in low carbon electricity generation now, so we have lower emissions in the future,
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However the recession has significantly reduced industrial output - and so demand for credits to cover industrial emissions has also fallen.
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This can be explained to support why when an economy is in recession, it has a similar impact as minimum price has. In addition, this also has a negative affect on the government who has the benefit of minimum price since then they are able to collect the money. Therefore this reduces the intention of the government to set a minimum price since they would have less benefit when the economy is in a recession.
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