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Comment faut-il distribuer les quotas échangeables de gaz à effet de serre ?

Listed author(s):
  • Philippe Quirion


    (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement)

The current revision of the European Union greenhouse gas emission trading system, in place since 2005, should modify the way allowances are distributed. We compare two distribution methods: a lump-sum allocation, based solely on past information, and an allocation proportional to the current output level. We identify the pros and cons of each allocation method and conclude that it is essential to distinguish the sectors sheltered from international competition, like power generation, from the exposed sectors. In the sheltered sectors, the allocation proportional to the current output level entails a much higher cost, and lump-sum allocation is unfair. Hence we favour auctioning, which does not suffer from these drawbacks. However, in exposed sectors, the allocation proportional to the current output level is an option worth considering.

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Paper provided by HAL in its series Post-Print with number hal-00639723.

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Date of creation: 07 Nov 2007
Publication status: Published in Revue Française d'Economie, Association Française d'Économie, 2007, XXII (2), pp. 129 à 164
Handle: RePEc:hal:journl:hal-00639723
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