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The EU Emission Trading Scheme: sectoral allocation and factors determining emission changes

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  • Claudia Kettner
  • Daniela Kletzan-Slamanig
  • Angela Köppl

Abstract

The European Union (EU) Emission Trading Scheme that covers 50% of EU greenhouse gas emissions is the biggest cap-and-trade scheme worldwide. In this article, for three emission-intensive sectors ('power and heat', 'cement and lime' and 'pulp and paper') allocation caps, emission developments and the main emission drivers are analysed. In order to assess what drives emissions and whether emission-saving actions were taken since 2005, a decomposition approach is applied. The analysis reveals pronounced sectoral disparities indicating some emission-reducing activities since 2005; for 'electricity and heat' and 'pulp and paper', these, however, do not deviate from the long-term trend prior to the introduction of the scheme. The occurrence of low CO 2 prices emphasises the need for adaptation towards a more effective system.

Suggested Citation

  • Claudia Kettner & Daniela Kletzan-Slamanig & Angela Köppl, 2015. "The EU Emission Trading Scheme: sectoral allocation and factors determining emission changes," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 4(1), pages 1-14, March.
    • Handle: RePEc:taf:teepxx:v:4:y:2015:i:1:p:1-14
    DOI: 10.1080/21606544.2014.948492
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    References listed on IDEAS

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    Cited by:

    1. Mazzanti, Massimiliano & Rizzo, Ugo, 2017. "Diversely moving towards a green economy: Techno-organisational decarbonisation trajectories and environmental policy in EU sectors," Technological Forecasting and Social Change, Elsevier, vol. 115(C), pages 111-116.

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