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"Emissions in the EU have been reduced at costs that are significantly lower than projected,[1] though transaction costs are related to economies of scale and can be significant for smaller installations.[2] Overall, the estimated cost was a fraction of 1% of GDP. It was suggested that if permits were auctioned, and the revenues used effectively, e.g., to reduce distortionary taxes and fund low-carbon technologies, costs could be eliminated, or even create a positive economic impact.
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