Does EU emissions trading bite? An event study

Price relationships in the EU emissions trading system

The Emissions Trading Scheme (ETS) constrains industrial polluters to buy/sell CO2 allowances depending on a regional depolluting objective of -8% of CO2 emissions by 2012 compared to 1990 levels. Companies may also buy carbon offsets from developing countries, funding emissions cuts there instead, under a Kyoto Protocol Clean Development Mechanism (CDM). This article critically analyzes the pr...

Reform Options for the European Emissions Trading System ( EU ETS )

An Empirical Approach to Quantify the Impact of EU Emissions Trading on Cement Industry Competitiveness

A number of previous studies have considered the effect of the EU Emissions Trading Scheme (EU ETS) on the competitiveness of energy-intensive industrial sectors. These studies typically make theoretical predictions about product pricing, and of the profitability of European firms whose CO 2 emissions are capped, or firms which are intensive electricity users. This paper adds to the literature ...

Monetary Emissions Trading Mechanisms

Emissions trading mechanisms have been proposed, and in some cases implemented, as a tool to reduce pollution. We argue that emission-trading mechanisms share some similarities with monetary mechanisms. Both attempt to implement desirable allocations under various frictions, including risk and private information. In addition, implementation relies on the issue and trading of objects whose valu...

Allocation and Competitiveness in the EU Emissions Trading Scheme: Policy Overview

The European Emissions Trading Scheme (EU ETS) has an efficient and effective market design that risks being undermined by three interrelated problems: the approach to allocation; the absence of a credible commitment to post-2012 continuation; and concerns about its impact on the international competitiveness of key sectors. This special issue of Climate Policy explores these three factors in d...