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Climate Notes: Emissions Trade – Familiar Problems, New Solutions?

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  • Alex Schmitt

Abstract

The third trading period of the European Emission Trading Scheme (EU-ETS) to prevent greenhouse gas emissions started in 2013 and will continue up to 2020. Taking stock after the first half of the trading period, it can be seen that the structural problem of EU ETS – an oversupply of emission allowances and a concomitantly low trading price – continues to exist. However, reform measures were initiated during this period with the aim of reducing this surplus. An important factor here is the Market Stability Reserve, which is expected to take effect in 2019, but whose prospects for success are viewed sceptically by experts.

Suggested Citation

  • Alex Schmitt, 2017. "Climate Notes: Emissions Trade – Familiar Problems, New Solutions?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(09), pages 48-50, May.
    • Handle: RePEc:ces:ifosdt:v:70:y:2017:i:09:p:48-50
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    References listed on IDEAS

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    1. Salant, Stephen W., 2016. "What ails the European Union׳s emissions trading system?," Journal of Environmental Economics and Management, Elsevier, vol. 80(C), pages 6-19.
    2. Koch, Nicolas & Fuss, Sabine & Grosjean, Godefroy & Edenhofer, Ottmar, 2014. "Causes of the EU ETS price drop: Recession, CDM, renewable policies or a bit of everything?—New evidence," Energy Policy, Elsevier, vol. 73(C), pages 676-685.
    3. Marc Gronwald, 2013. "Climate notes: Emissions Trading News," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(03), pages 42-43, February.
    4. Fell, Harrison, 2016. "Comparing policies to confront permit over-allocation," Journal of Environmental Economics and Management, Elsevier, vol. 80(C), pages 53-68.
    5. Niklas Lüder Barre & Marc Gronwald & Jana Lippelt, 2012. "Climate notes: Emissions Trading – Worldwide Developments and Current Problems," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 65(17), pages 26-28, September.
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    Citations

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    Cited by:

    1. Sophia Appl Scorza & Johannes Pfeiffer & Alex Schmitt & Christoph Weissbart, 2018. "Climate Notes: “Sector Coupling” – Approaches and Implications of the Decarbonisation of the Energy System," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(10), pages 49-53, May.
    2. Joachim Weimann, 2017. "EU Emissions Trading: Better than its Reputation," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(14), pages 24-27, July.
    3. Maria Hofbauer Pérez & Carla Rhode, 2020. "Carbon Pricing: International Comparison," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 18(01), pages 49-59, April.
    4. Christian Traeger & Grischa Perino & Karen Pittel & Till Requate & Alex Schmitt, 2020. "The Flexcap – An Innovative CO2 Pricing for Germany," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 18(01), pages 42-48, April.
    5. Christian Traeger & Grischa Perino & Karen Pittel & Till Requate & Alex Schmitt, 2019. "Das Flexcap – eine innovative CO₂-Bepreisung für Deutschland," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(18), pages 38-45, September.
    6. Karen Pittel & Helena Cordt & Sandra Gschnaller & Mathias Mier & Valeriya Azarova, 2020. "Briefly on the Climate: The Coronavirus Crisis and its Effects on European Emissions Trading," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(06), pages 67-71, June.

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    More about this item

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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