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The EU Emissions Trading Scheme: Allowance Prices, Trade Flows, Competitiveness Effects

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  • Gernot Klepper
  • Sonja Peterson

Abstract

The 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 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 of the role of the accession countries in the ETS.

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File URL: http://www.ifw-members.ifw-kiel.de/publications/the-eu-emissions-trading-scheme-allowance-prices-trade-flows-competitiveness-effects/kap-1195
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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1195.

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Length: 29 pages
Date of creation: Jan 2004
Date of revision:
Handle: RePEc:kie:kieliw:1195

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Related research

Keywords: EU emissions trading scheme; Kyoto targets; computable general equilibrium model; DART;

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  1. Christoph Bohringer, 2002. "Industry-level emission trading between power producers in the EU," Applied Economics, Taylor & Francis Journals, vol. 34(4), pages 523-533.
  2. Gernot Klepper & Sonja Peterson & Katrin Springer, 2003. "DART97: A Description of the Multi-regional, Multi-sectoral Trade Model for the Analysis of Climate Policies," Kiel Working Papers 1149, Kiel Institute for the World Economy.
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