IDEAS home Printed from https://ideas.repec.org/p/kyo/wpaper/660.html
   My bibliography  Save this paper

Effect of the European Union Emission Trading Scheme (EU ETS) on companies: Interviews with European companies

Author

Listed:
  • Seiji Ikkatai

    () (Institute of Economic Research, Kyoto University)

  • Daiske Ishikawa

    (Institute of Economic Research, Kyoto University)

  • Kengo Sasaki

    (Institute of Economic Research, Kyoto University)

Abstract

We visited Belgian and Dutch companies that are covered by EU ETS in November 2007, in order to conduct interviews regarding the impact of the scheme and the resultant performance of these companies. The problems of the EU ETS that emerge from this interview are as follows: (1) the redundancy of emission allowance dampens the incentive to reduce the emission of CO2, (2) the allocation scheme fails to consider inter-industrial and/or inter-district fairness, and (3) since the duration of the National Allocation Plan is too short and highly uncertain, it is difficult to implement a long-term reduction investment plan. As European company officers pointed out, the current EU ETS has several problems. However, the recent political debate on the EU ETS seems to have entered a new dimension toward the second period of the National Allocation Plan. For instance, the cap of CO2 emission in the second period has tightened in comparison with the case in the first period, when the allowance excessive. Furthermore, in January 2008, the European Union set the goal of reducing emission by 20% from the 1990 level, by the year 2020. Moreover, the EU intends to introduce the complete auction of emission allowance after the year 2013 excluding the sector that is expected to experience serious leakage problems. The current EU ETS can be regarded as a CO2 reduction scheme in transition. The policy makers of the Japanese government should behold and draw upon the experiences of the European Union in order to implement appropriate policy measures against global warming in Japan.

Suggested Citation

  • Seiji Ikkatai & Daiske Ishikawa & Kengo Sasaki, 2008. "Effect of the European Union Emission Trading Scheme (EU ETS) on companies: Interviews with European companies," KIER Working Papers 660, Kyoto University, Institute of Economic Research.
  • Handle: RePEc:kyo:wpaper:660
    as

    Download full text from publisher

    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP660.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ralf Martin & Mirabelle Muûls & Ulrich J. Wagner, 2016. "The Impact of the European Union Emissions Trading Scheme on Regulated Firms: What Is the Evidence after Ten Years?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 129-148.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kyo:wpaper:660. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ryo Okui). General contact details of provider: http://edirc.repec.org/data/iekyojp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.