The political economy of a tradable GHG permit market in the European Union
AbstractThe EU has committed itself to meet an 8% greenhouse gas (GHG) reduction target level following the Kyoto agreement. Therefore, the EU Commission has just proposed a new directive establishing a framework for GHG emissions trading within the European Union. This proposal is the outcome of a policy process started by the EU Commission and its Green Paper from March 2000. The main industrial stakeholders all had the opportunity to comment on the Green Paper and from their positions we will analyse how far they are winners or losers compared to the final directive proposal. Here, we find that the dominant interest groups indeed influenced the final design of an EU GHG market. This industrial rent-seeking most prominently lead to a grandfathered permit allocation rule like the one found in the US tradable permit systems.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 02-3.
Length: 22 pages
Date of creation: 01 Jan 2002
Date of revision:
Contact details of provider:
Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
More information through EDIRC
Rent-seeking; European Union; political economy; Kyoto protocol; greenhouse gases; permit trading; grandfathering;
Find related papers by JEL classification:
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- H40 - Public Economics - - Publicly Provided Goods - - - General
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-05-15 (All new papers)
- NEP-EEC-2003-05-15 (European Economics)
- NEP-POL-2003-05-15 (Positive Political Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Greenwood, Justin & Webster, Ruth, 2000. "Are EU Business Associations Governable?," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 4, 02.
- Svendsen, Gert Tinggaard, 1999. " U.S. Interest Groups Prefer Emission Trading: A New Perspective," Public Choice, Springer, vol. 101(1-2), pages 109-28, October.
- Urs Steiner Brandt & Gert Tinggaard Svendsen, 2002. "Rent-seeking and grandfathering: The case of GHG trade in the EU," Working Papers 35/02, University of Southern Denmark, Department of Environmental and Business Economics.
- Andrea Kollmann & Friedrich Schneider, 2010.
"Why Does Environmental Policy in Representative Democracies Tend to Be Inadequate? A Preliminary Public Choice Analysis,"
MDPI, Open Access Journal, vol. 2(12), pages 3710-3734, November.
- Andrea Kollmann & Friedrich Schneider, 2010. "Why does Environmental Policy in Representative Democracies Tend to be Inadequate? A Preliminary Public Choice Analysis," CESifo Working Paper Series 3223, CESifo Group Munich.
- Sven Rudolph & Friedrich Schneider, 2011. "Did the Japanese Patient Follow the Doctor's Orders? Mostly no! A Public Choice Analysis of Greenhouse Gas Emissions Trading Schemes in Japan before and after the Earthquake," CESifo Working Paper Series 3639, CESifo Group Munich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helle Vinbaek Stenholt).
If references are entirely missing, you can add them using this form.