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Empowering the EU ETS Allowance Market: Safeguarding Against Price Volatility and Carbon Leakage. TranSust.Scan Working Paper

Author

Listed:
  • Claudia Kettner
  • Angela Köppl
  • Stefan Schleicher

    (WIFO)

Abstract

Based on the experiences in phase 1 of the EU Emission Trading Scheme and the emerging evidence in phase 2 we suggest complementary activities within the framework of the decisions of December 2008 that empower the carbon market in phase 3. We analyse the controversies about price volatility and suggest an auctioning procedure with a reserve price. For the assessment of the risk of carbon leakage we state the difficulties for categorising the relevant industries and suggest a cooperative procedure with an active involvement of subsectors which also helps distributing the free allowances based on benchmark criteria.

Suggested Citation

  • Claudia Kettner & Angela Köppl & Stefan Schleicher, 2009. "Empowering the EU ETS Allowance Market: Safeguarding Against Price Volatility and Carbon Leakage. TranSust.Scan Working Paper," WIFO Studies, WIFO, number 38925, April.
    • Handle: RePEc:wfo:wstudy:38925
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    References listed on IDEAS

    as
    1. Pizer, William A., 2002. "Combining price and quantity controls to mitigate global climate change," Journal of Public Economics, Elsevier, vol. 85(3), pages 409-434, September.
    2. Claudia Kettner & Angela Köppl & Stefan P. Schleicher & Gregor Thenius, 2008. "Stringency and distribution in the EU Emissions Trading Scheme: first evidence," Climate Policy, Taylor & Francis Journals, vol. 8(1), pages 41-61, January.
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    Cited by:

    1. Claudia Kettner & Angela Köppl & Stefan Schleicher, 2012. "Carbon Authority as Price Stabilising Institution in the EU ETS," WIFO Studies, WIFO, number 44536, February.

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