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International Emissions Trading Scheme and European Emissions Trading Scheme : what linkages ?

Author

Listed:
  • Natacha Raffin

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Katheline Schubert

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Simultaneity between commitment periods (2008-2012) of both International and European Emissions Trading schemes may generate distortions in terms of burden distribution among sectors. There will be two levels of trading (a country and an entity level), which both need to be consistent with one another, despite of their different designs. To reach international targets, European governments will adopt an additional policy. It consists in implementing a tax on emissions of non-covered sectors. The tax rates depend on the effort realized within the European market. We propose a modeling of this two-level environmental policy, focusing on the levels of tax rates in each case of linkage. We obtain empirical estimations of the efforts that could be demanded to non-covered sectors and of the price(s) of carbon.

Suggested Citation

  • Natacha Raffin & Katheline Schubert, 2007. "International Emissions Trading Scheme and European Emissions Trading Scheme : what linkages ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00175090, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00175090
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00175090
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    References listed on IDEAS

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    1. Carlén, Björn, 2004. "EU's Emissions Trading System in the Presence of National Emission Targets," Research Papers in Economics 2004:16, Stockholm University, Department of Economics.
    2. Olivier Godard, 2005. "Politique de l'effet de serre. Une évaluation du plan français de quotas de CO2," Revue Française d'Économie, Programme National Persée, vol. 19(4), pages 147-186.
    3. Carolyn Fischer & Richard D. Morgenstern, 2006. "Carbon Abatement Costs: Why the Wide Range of Estimates?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 73-86.
    4. Butzengeiger, Sonja & Betz, Regina & Bode, Sven, 2001. "Making GHG Emissions Trading Work - Crucial Issues in Designing National and International Emissions Trading Systems," Discussion Paper Series 26153, Hamburg Institute of International Economics.
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    More about this item

    Keywords

    Kyoto Protocol; EU-ETS; co-existence of domestic and international emissions trading systems; carbon price; environmental policy.; environmental policy; Protocole de Kyoto; coexistence de marchés de permis échangeables domestique et international; prix du carbone et politique environnementale.;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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