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Evaluating emissions trading as a policy instrument

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  • Marc Gronwald
  • Janina Ketterer

Abstract

Emissions trading, currently the main instrument of climate policy in Europe, will continue to gain importance in the future. The particular qualities of the market for CO2 pollution rights differ from other financial markets: numerous decisions on regulatory conditions must be made that have far-reaching effects on trading and consequently on prices. This can lead to price hikes in emissions certificates. As a result there is a particularly great insecurity on this market, which also affects the behaviour of enterprises regarding the avoidance of CO2 emissions and that leads to delays in investments in avoidance technologies.

Suggested Citation

  • Marc Gronwald & Janina Ketterer, 2009. "Evaluating emissions trading as a policy instrument," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 62(11), pages 22-25, June.
    • Handle: RePEc:ces:ifosdt:v:62:y:2009:i:11:p:22-25
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    References listed on IDEAS

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    Cited by:

    1. Claudia Kemfert & Sophie Schmalz & Nicole Wägner, 2019. "CO2-Bepreisung im Wärme- und Verkehrssektor: Erweiterung des Emissionshandels löst aktuelles Klimaschutzproblem nicht," Discussion Papers of DIW Berlin 1818, DIW Berlin, German Institute for Economic Research.

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    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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