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A two-sector model of the European Union Emissions Trading Scheme

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  • Suzanne Shaw

    (Chaire Economie du Climat, Paris-Dauphine University)

Abstract

The subject of this paper is a model which has been developed to estimate EU-ETS constrained emissions and consequent EU ETS permit market equilibrium prices in the medium term. The model, in its current stage, is conceived for the case of a permit market composed of two EU27-aggregated sectors: electric and non-electric, and for the specific case of full banking and borrowing. The paper presents the conceptual approach of the model, its main features and quantitative relationships, together with the method of resolution under perfect foresight. It also highlights the role that the model fills with respect to other models currently being developed.

Suggested Citation

  • Suzanne Shaw, 2010. "A two-sector model of the European Union Emissions Trading Scheme," Working Papers 1001, Chaire Economie du climat.
    • Handle: RePEc:cec:wpaper:1001
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    References listed on IDEAS

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    Keywords

    EU-ETS; model;

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