The EU Emissions Trading Scheme. Allowance Prices, Trade Flows, Competitiveness Effects
AbstractThe upcoming European Emissions Trading Scheme (ETS) is one of the more controversial climate policy instruments. Predictions about its likely impact and its performance can at present only be made to a certain degree. As long as the National Allocations Plans are not finally settled the overall supply of allowances is not determined. In this paper we will identify key features and key impacts of the EU ETS by scanning the range of likely allocation plans using the simulation model DART. The analysis of the simulation results highlights a number of interesting details in terms of allowance trade flows between member countries, of allowance prices, and in terms of the role of the accession countries in the ETS.
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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2004.49.
Date of creation: Mar 2004
Date of revision:
EU Emissions trading scheme; Kyoto targets; Computable general equilibrium model; DART;
Other versions of this item:
- Gernot Klepper & Sonja Peterson, 2004. "The EU Emissions Trading Scheme: Allowance Prices, Trade Flows, Competitiveness Effects," Kiel Working Papers 1195, Kiel Institute for the World Economy.
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- F18 - International Economics - - Trade - - - Trade and Environment
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-07-18 (All new papers)
- NEP-EEC-2004-07-18 (European Economics)
- NEP-ENV-2004-07-18 (Environmental Economics)
- NEP-RES-2004-07-18 (Resource Economics)
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