Greenhouse gas (GHG) benchmarking for allocation serves as rewards for early actions in mitigating GHG emissions by using more advanced technologies. China Hubei launched the carbon emission trading pilot in 2014, with the cement industry represented as a major contributor to the GHG emissions in Hubei. This article is set to establish a general benchmarking framework by describing and calculat...

Arguably, the climate talks in Copenhagen in December 2010 did not deliver on the high expectations the world had raised for a post-Kyoto agreement. But the commitment to confront climate change at the highest level is beyond doubt. At the time of writing, the EU Commission is to propose a draft regulation on large scale auctioning in the European Union Emissions Trading Scheme (EU ETS) startin...

This paper provides an empirical analysis of the evidence of carbon leakage from the European primary aluminium industry during the first 6 ½ years of the European Union Emissions Trading Scheme (EU ETS). The findings suggest that while rising electricity prices in several major producer countries in the EU have played a critical role in the rise in net imports of EU primary aluminium into the ...

Air transport has become a vital component of the global economy. However, greenhouse gas emissions from this sector have a significant impact on global climate, being responsible for over 3.5% of all anthropogenic radiative forcing. Also, the accrued visibility of aircraft emissions greatly deteriorates the public image of the industry. In this context, incentive-based regulations, in the form...

Simultaneity between commitment periods (2008-2012) of International Emissions Trading (IET) scheme and EUropean Emissions Trading Scheme (EU-ETS) is likely to generate distortions in terms of burden’s distribution among sectors. There will be two levels of trading : a country and an entity level, which both need to be consistent with each other. Besides, features of these two “cap and trade" e...

Designing an emissions trading scheme requires in-depth knowledge about several aspects. This paper attempts to clarify some important design points of the forthcoming emissions trading scheme for aviation under the EU ETS. Five general key points of system design are acknowledged and comparisons are made to previous and current emission trading schemes. Above all, it is argued that initial all...

Carbon leakage is a major concern for policymakers involved with environmental initiatives such as the European Union’s emissions trading scheme and similar capand-trade proposals in the United States, Australia, and elsewhere. This paper provides a framework for understanding the drivers underlying carbon leakage at the level of an individual sector in which only a subset of …rms is covered by...

In its first issue, in 2007, this journal devoted a three-article symposium to the European Union Emissions Trading Scheme (EU ETS). Why revisit this topic so soon? There are a few reasons. Since our profession’s beginning, the integration of environment and economy via markets has been a core objective, and the reason why many of us entered the field of environmental economics in the first pla...

We examine the number of patent applications for climate change mitigation technologies (CCMT) filed at the European Patent Office and seek to relate it to the oversupply of emission allowances under the European Union Emission Trading System (EU ETS). We use a panel count data approach to show that firms covered by the policy take the oversupply into account when determining their level of inn...