Arbeitspapier

Emission trading beyond Europe: linking schemes in a post-Kyoto world

This paper assesses the economic impacts of linking the EU Emission Trading Scheme (ETS) to emerging schemes beyond Europe, in the presence of a post-Kyoto agreement in 2020. Simulations with a numerical multi-country model of the world carbon market show that linking the European ETS induces only marginal economic benefits: As trading is restricted to energy-intensive industries that are assigned generous initial emissions, the major compliance burden is carried by non-trading industries excluded from the linked ETS. In the presence of parallel government trading under a post-Kyoto Protocol, excluded sectors can however be substantially compensated by international trading at the country level, thus increasing the political attractiveness of the linking process. From an efficiency perspective, a desirable future climate policy regime represents a joint trading system that enables international emission trading between ETS companies and governments. While the Clean Development Mechanism (CDM) cannot alleviate the inefficiencies of linked ETS, in a parallel or joint trading regime the access to abatement options of developing countries induces large additional cost savings. Restricting CDM access via a supplementarity criterion does not significantly decrease the economic benefits from project-based emission crediting.

Sprache
Englisch

Erschienen in
Series: ZEW Discussion Papers ; No. 06-058

Klassifikation
Wirtschaft
Taxation and Subsidies: Incidence
Taxation and Subsidies: Efficiency; Optimal Taxation
Environmental Economics: Government Policy
Allocative Efficiency; Cost-Benefit Analysis
Thema
EU ETS
Emission Trading
Kyoto Protocol
Clean Development Mechanism

Ereignis
Geistige Schöpfung
(wer)
Anger, Niels
Ereignis
Veröffentlichung
(wer)
Zentrum für Europäische Wirtschaftsforschung (ZEW)
(wo)
Mannheim
(wann)
2006

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Anger, Niels
  • Zentrum für Europäische Wirtschaftsforschung (ZEW)

Entstanden

  • 2006

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