The law and economics analysis of the climate change remedies has been focused on the ques- tion of which would be the policy instrument most suited to provide incentives to reduce greenhouse gas emissions. The literature focuses mainly on the comparison of carbon taxes and emission trading scheme. But a rele- vant role can be played by financial and insur- ance instruments, especially considering the adaptation and mitigation strategies. Finally, another instrument is considered, largely used to internalize other environmental externalities but still not so much analysed for climate change, the liability system.
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