The fundamentals of the future international emissions trading system
The study aims to examine the efficiency aspects of the international carbon market, with a focus on economic impacts on the European energy system, by analyzing the sectoral Marginal Abatements Cost Curves (MACC) and the trading under different global carbon market configurations in 2010 and in 2020. To produce a consistent and realistic assessment we employ sources such as: second NAPs under ETS, GHG National Inventories, EIA data and POLES world energy model to constitute the sectoral base year and 2010, 2020 emission levels in different countries and regions. We then use the market analysis tool ASPEN, which enables to derive supply and demand from sectoral MACCs produced with POLES model, and to evaluate the economic impacts on the carbon market participants. The paper shows in particular that in compliance with 2020 emission reduction targets, the benefits of an extended carbon market gain importance since more than 50% of the reduction target is achieved by ETS sectors and especially electricity sector. Furthermore, the new flexibility margins provided by a longer time-period for the adjustment of investments in new generation capacities compensates for the increasing pressure towards stronger emission reductions
|Date of creation:||Nov 2008|
|Publication status:||Published in Energy Policy, Elsevier, 2008, 36 (11), pp.4272-7286|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00172290|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Steffen Kallbekken, 2007. "Why the CDM will reduce carbon leakage," Climate Policy, Taylor & Francis Journals, vol. 7(3), pages 197-211, May.
- Patrick Criqui & Laurent Viguier, 2000. "Kyoto and technology at world level: costs of CO 2 reduction under flexibility mechanisms and technical progress," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 14(1/2/3/4), pages 155-168.
- Criqui, Patrick & Mima, Silvana & Viguier, Laurent, 1999. "Marginal abatement costs of CO2 emission reductions, geographical flexibility and concrete ceilings: an assessment using the POLES model," Energy Policy, Elsevier, vol. 27(10), pages 585-601, October.
- Michaelowa, Axel & Jotzo, Frank, 2005. "Transaction costs, institutional rigidities and the size of the clean development mechanism," Energy Policy, Elsevier, vol. 33(4), pages 511-523, March.
- Patrick Criqui & Nikolaos Kouvaritakis, 2000. "World energy projections to 2030," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 14(1/2/3/4), pages 116-136.
- Gernot Klepper & Sonja Peterson, 2006.
"Emissions Trading, CDM, JI, and More: The Climate Strategy of the EU,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 2), pages 1-26.
- Gernot Klepper & Sonja Peterson, 2005. "Emissions Trading, CDM, JI, and More – The Climate Strategy of the EU," Working Papers 2005.55, Fondazione Eni Enrico Mattei.
- Klepper, Gernot & Peterson, Sonja, 2005. "Emissions trading, CDM, JI, and more: The climate strategy of the EU," Kiel Working Papers 1238, Kiel Institute for the World Economy (IfW).
- Klepper, Gernot & Peterson, Sonja, 2006. "Emissions trading, CDM, JI, and more: the climate strategy of the EU," Open Access Publications from Kiel Institute for the World Economy 3814, Kiel Institute for the World Economy (IfW).
- Anger, Niels, 2006. "Emission trading beyond Europe: linking schemes in a post-Kyoto world," ZEW Discussion Papers 06-58, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Springer, Urs & Varilek, Matthew, 2004. "Estimating the price of tradable permits for greenhouse gas emissions in 2008-12," Energy Policy, Elsevier, vol. 32(5), pages 611-621, March. Full references (including those not matched with items on IDEAS)