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Allocation and competitiveness in the EU emissions trading scheme: policy overview

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Abstract

The European emissions trading scheme (EU ETS) has an efficient and effective market design that risks being undermined by three interrelated problems: the approach to allocation; the absence of a credible commitment to post-2012 continuation; and concerns about its impact on the international competitiveness of key sectors. This special issue of Climate Policy explores these three factors in depth. This policy overview summarizes key insights from the individual studies in this issue, and draws overall policy conclusions about the next round of allocations and the design of the system for the longer term.

Suggested Citation

  • Grubb, M. & Neuhoff, K., 2006. "Allocation and competitiveness in the EU emissions trading scheme: policy overview," Cambridge Working Papers in Economics 0645, Faculty of Economics, University of Cambridge.
  • Handle: RePEc:cam:camdae:0645
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    File URL: http://www.electricitypolicy.org.uk/pubs/wp/eprg0622.pdf
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    as
    1. Kati Kulovesi & Katja Kein�nen, 2006. "Long-term climate policy: international legal aspects of sector-based approaches," Climate Policy, Taylor & Francis Journals, vol. 6(3), pages 313-325, May.
    2. Pablo del R�o Gonz�lez, 2006. "Harmonization versus decentralization in the EU ETS: an economic analysis," Climate Policy, Taylor & Francis Journals, vol. 6(4), pages 457-475, July.
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    More about this item

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F18 - International Economics - - Trade - - - Trade and Environment

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