IDEAS home Printed from https://ideas.repec.org/a/taf/tcpoxx/v2y2002i1p105-109.html
   My bibliography  Save this article

Benchmark-based emission allocation in a cap-and-trade system

Author

Listed:
  • Heleen Groenenberg
  • Kornelis Blok

Abstract

One of the important bottlenecks for the introduction of emission trading is how allowances should be distributed among the participants in a trading scheme. Both grandfathering on the basis of historic emissions and auctioning have important drawbacks. In this paper, we propose an allowance distribution rule based on benchmarking of production processes: each company's share in the total allowance is determined by its production level and a reference emission level per product. The scheme shows some important advantages compared to other schemes.

Suggested Citation

  • Heleen Groenenberg & Kornelis Blok, 2002. "Benchmark-based emission allocation in a cap-and-trade system," Climate Policy, Taylor & Francis Journals, vol. 2(1), pages 105-109, March.
  • Handle: RePEc:taf:tcpoxx:v:2:y:2002:i:1:p:105-109
    DOI: 10.3763/cpol.2002.0209
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.3763/cpol.2002.0209
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.3763/cpol.2002.0209?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhou, P. & Wang, M., 2016. "Carbon dioxide emissions allocation: A review," Ecological Economics, Elsevier, vol. 125(C), pages 47-59.
    2. Tisdell, John, 2007. "Bringing biophysical models into the economic laboratory: An experimental analysis of sediment trading in Australia," Ecological Economics, Elsevier, vol. 60(3), pages 584-595, January.
    3. Wang, M. & Zhou, P., 2022. "A two-step auction-refund allocation rule of CO2 emission permits," Energy Economics, Elsevier, vol. 113(C).
    4. Chen, Tze-Wei & Chou, Chang-Erh & Chang, Kuo-Chuang, 2001. "Linking CGE with Geographic Information System," Conference papers 330914, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Zhang, Yue-Jun & Wang, Ao-Dong & Tan, Weiping, 2015. "The impact of China's carbon allowance allocation rules on the product prices and emission reduction behaviors of ETS-covered enterprises," Energy Policy, Elsevier, vol. 86(C), pages 176-185.
    6. Lyu, Chenyan, 2021. "Regional Carbon Markets in China: Cointegration and Heterogeneity," Working Papers 13-2021, Copenhagen Business School, Department of Economics.
    7. Anouliès, Lisa, 2017. "Heterogeneous firms and the environment: a cap-and-trade program," Journal of Environmental Economics and Management, Elsevier, vol. 84(C), pages 84-101.
    8. Li, Gao & Ruonan, Li & Yingdan, Mei & Xiaoli, Zhao, 2022. "Improve technical efficiency of China's coal-fired power enterprises: Taking a coal-fired-withdrawl context," Energy, Elsevier, vol. 252(C).
    9. Yang, Lisha & Li, Yutianhao & Liu, Hongxun, 2021. "Did carbon trade improve green production performance? Evidence from China," Energy Economics, Elsevier, vol. 96(C).
    10. Stephenson, Kurt & Bosch, Darrell J. & Groover, Gordon E., 2004. "Carbon Credit Potential From Intensive Rotational Grazing Under Carbon Credit Certification Protocols," 2004 Annual meeting, August 1-4, Denver, CO 20225, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Wen Jiang & Li Yuan & Lanjun Wu & Shiyue Guo, 2019. "Carbon emission reduction and profit distribution mechanism of construction supply chain with fairness concern and cap-and-trade," PLOS ONE, Public Library of Science, vol. 14(10), pages 1-23, October.
    12. Wang, M. & Zhou, P., 2017. "Does emission permit allocation affect CO2 cost pass-through? A theoretical analysis," Energy Economics, Elsevier, vol. 66(C), pages 140-146.
    13. Chi, Yuan-ying & Zhao, Hao & Hu, Yu & Yuan, Yong-ke & Pang, Yue-xia, 2022. "The impact of allocation methods on carbon emission trading under electricity marketization reform in China: A system dynamics analysis," Energy, Elsevier, vol. 259(C).
    14. Rietbergen, Martijn G. & Blok, Kornelis, 2010. "Setting SMART targets for industrial energy use and industrial energy efficiency," Energy Policy, Elsevier, vol. 38(8), pages 4339-4354, August.
    15. Kampas, Athanasios & White, Ben, 2003. "Selecting permit allocation rules for agricultural pollution control: a bargaining solution," Ecological Economics, Elsevier, vol. 47(2-3), pages 135-147, December.
    16. Linghu, Dazhi & Wu, Xilin & Lai, Kee-Hung & Ye, Fei & Kumar, Ajay & Tan, Kim Hua, 2022. "Implementation strategy and emission reduction effectiveness of carbon cap-and-trade in heterogeneous enterprises," International Journal of Production Economics, Elsevier, vol. 248(C).
    17. Ian Mackenzie & Nick Hanley & Tatiana Kornienko, 2008. "The optimal initial allocation of pollution permits: a relative performance approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 39(3), pages 265-282, March.
    18. Wen Jiang & Wenfei Lu & Qianwen Xu, 2019. "Profit Distribution Model for Construction Supply Chain with Cap-and-Trade Policy," Sustainability, MDPI, vol. 11(4), pages 1-24, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:tcpoxx:v:2:y:2002:i:1:p:105-109. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/tcpo20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.