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Should the EU ETS be extended to road transport and heating fuels?

Author

Listed:
  • Michael Pollitt

    (EPRG, CJBS, University of Cambridge)

  • Geoffroy Dolphin

    (Resources for The Future)

Abstract

This paper considers the current proposal to extend the EU ETS to cover CO2 emissions from the combustion of heating and road transport fuels. We argue that increased coverage of the EU ETS, together with a binding cap consistent with a net zero trajectory, would be a powerful dynamic incentive to efficient emissions reduction. In addition, it would complement standards-based policies currently enacted in these sectors in several ways. Distributional implications remain a serious challenge to such an extension but several mechanisms are available to alleviate them.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Michael Pollitt & Geoffroy Dolphin, 2021. "Should the EU ETS be extended to road transport and heating fuels?," Working Papers EPRG2119, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    • Handle: RePEc:enp:wpaper:eprg2119
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    References listed on IDEAS

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    More about this item

    Keywords

    climate policy; emissions trading; EU; net zero;
    All these keywords.

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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