The Impact of European Union Emissions Trading Scheme (EU ETS) National Allocation Plans (NAP) on Carbon Markets

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

The Value Relevance of Greenhouse Gas Emissions under the European Union Carbon Emissions Trading Scheme

This study examines the valuation relevance of greenhouse gas emissions under the European Union Carbon Emission Trading Scheme (EU ETS). We posit that carbon emissions affect firm valuation only to the extent that a firm’s emissions exceed its carbon allowances under a cap and trade system and the extent of its inability to pass on carbon related compliance costs to consumers and end users. We...

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...

The European Union Emissions Trading Scheme: should we throw the flagship out with the bathwater?

The European Union Emissions Trading System (EU ETS), presented as the “flagship” of European climate policy, is subject to many criticisms from different stakeholders: it does not reduce carbon emissions nor generate enough low-carbon innovation, it induces competitiveness losses and carbon leakage, its distributional effects are unfair and finally, it is susceptible to fraud. We review these ...

Public Interest vs. Interest Groups: Allowance Allocation in the EU Emissions Trading Scheme

This article presents a political-economy analysis of allowance allocation in the EU Emissions Trading Scheme (EU ETS). A common-agency model suggests that a politicalsupport maximizing government considers the preferences of sectoral interest groups besides public interest when allocating emissions permits. In the stylized model, industries represented by more powerful lobby groups face a lowe...