An example is British Columbia’s carbon tax, which is estimated to have reduced greenhouse gas emissions by 5 to 15 per cent below what they would have been otherwise.4 Other examples include the widespread switch to smaller cars, prompted by the oil price spikes of the 1970s, and the displacement of coal by cheaper natural gas for power generation in recent years.
2/7  BIS central bankers' speeches  Properly aligned incentives can reduce the need for pervasive regulation. Of course, regulation has its place as a complement to pricing.