Post-Kyoto Global Emissions Trading: Perspectives for Linking National Emissions Trading Schemes with the EU ETS in a Bottom-Up Approach

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

Global Trading versus Linking: Architectures for International Emissions Trading

International emissions trading is widely seen as an indispensable policy pillar of climate change mitigation (Stern, 2007). This article analyzes five different types of trading architectures, classified into two top-down (UNFCCC driven) and three bottom-up (driven by individual countries or regions) approaches. The two types of approaches are characterized by a trade-off between environmental...

Economic effects of national emissions trading schemes; national dilemma’s within a global issue

This paper investigates the effects of the various systems of tradeable allowances for CO2-emissions in the Netherlands. These effects are compared with those of raising and adapting the current energy taxes. The results show that a hybrid emissions system (with a absolute cap for sheltered sectors and a relative cap for exposed sectors) performs best in terms of a net national income measure o...

Emissions Trading in the Kyoto Protocol : potential benefits and pitfalls

This paper sets out from a brief overview of the fate of market-based instruments in environmental policy in the past and proceeds to discuss the potential benefits and pitfalls of international carbon emission trading (IET), the most promising of the Kyoto mechanisms (IET, JI and CDM). The problems of trading ’hot air’, the supplementarity requirement in Article 17 of the Kyoto Protocol and at...

The European Emissions Trading System (EU ETS): ex-post analysis, the market stability reserve and options for a comprehensive reform1

The central pillar of European climate policy, the European Emissions Trading System (EU ETS), is currently under scrutiny, as the allowance price is persistently low at around 5€/tCO2. The cap was met and emissions actually declined in recent years, ensuring the environmental effectiveness of the scheme. However, the low price may affect the long-term cost-effectiveness of the instrument by re...