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

Arbeitspapier

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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

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

Klassifikation und Themen

• 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

Beteiligte, Orts- und Zeitangaben

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

Weitere Informationen

• Handle: http://hdl.handle.net/10419/24513
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ