Arbeitspapier

Intra-and extra-union flexibility in meeting the European Union's emission reduction targets

The EU has proposed four flexibility mechanisms for the regulation of greenhouse gas emissions in the period 2013-2020: (1) the Emissions Trade Scheme (ETS), a permit market between selected companies; (2) trade in non-ETS allotments between Member States; (3) the Clean Development Mechanism (CDM) to purchase offsets in developing countries; and (4) trade in CDM warrants between Member States. This paper shows that aggregate abatement costs fall as flexibility increases. However, limited flexibility creates rents so that increasing flexibility raises costs in some Member States. Costs are reduced more by the CDM than by non-ETS trade. The CDM warrants market reduces costs by a small amount only; market power is a real issue. However, the warrants market is obsolete in case there is non-ETS trade. The CDM leads to price convergence between the ETS and non-ETS market. There would be one price for carbon in the European Union if the proposed limits on CDM access are relaxed slightly.

Sprache
Englisch

Erschienen in
Series: ESRI Working Paper ; No. 290

Klassifikation
Wirtschaft
Thema
European Union
greenhouse gas emission reduction
clean development mechanism
permit trade
Klimaschutz
Treibhausgas
Clean Development Mechanism
Emissionshandel
Umweltschutzkosten
EU-Staaten

Ereignis
Geistige Schöpfung
(wer)
Tol, Richard S. J.
Ereignis
Veröffentlichung
(wer)
The Economic and Social Research Institute (ESRI)
(wo)
Dublin
(wann)
2009

Handle
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

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

  • Tol, Richard S. J.
  • The Economic and Social Research Institute (ESRI)

Entstanden

  • 2009

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