Moderate Emissions Grandfathering

Emissions Trading and Profit-neutral Grandfathering

This paper examines the amount of grandfathering needed for an emissions trading scheme (ETS) to have a neutral impact on firm profits. We provide a simple formula to calculate profit-neutral grandfathering in an asymmetric Cournot model with a general demand function. Using this formula, we obtain estimates of profit-neutral grandfathering for the electricity, cement, newsprint and steel indus...

What is grandfathering?

On the Design of Optimal Grandfathering Schemes for Emission Allowances

To meet its commitment under the Kyoto Protocol, the EU plans to implement an emissions trading system with grandfathering of allowances. Besides having distributional impacts, the choice of the grandfathering scheme may affect efficiency if firms anticipate how future allocations depend on upcoming decisions. In this paper, we determine central design rules for optimal grandfathering within a ...

Selection for long lifespan in men: benefits of grandfathering?

Life-history theory suggests that individuals should live until their reproductive potential declines, and the lifespan of human men is consistent with this idea. However, because women can live long after menopause and this prolonged post-reproductive life can be explained, in part, by the fitness enhancing effects of grandmothering, an alternative hypothesis is that male lifespan is influence...

Grandfathering of CO2 Emission Rights vs. Equitable Allocations

The paper analyses the issue of equity and climate change by comparing the Kyoto scenario of reducing emissions with two hypothetical ‘egalitarian’ scenarios in which every human being would be given the same amount of CO2 emission rights. The numbers generated suggest three major points. One is that the revenues generated by the egalitarian schemes are huge for developing countries, compensati...