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International Emissions Trading Scheme and European Emissions Trading Scheme: what linkages?

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  • Natacha Raffin

    (Centre d'Economie de la Sorbonne)

  • Katheline Schubert

    (Centre d'Economie de la Sorbonne)

Abstract

Simultaneity between commitment periods (2008-2012) of both International and European Emissions Trading schemes may generate distortions in terms of burden distribution among sectors. There will be two levels of trading (a country and an entity level), which both need to be consistent with one another, despite of their different designs. To reach international targets, European governments will adopt an additional policy. It consists in implementing a tax on emissions of non-covered sectors. The tax rates depend on the effort realized within the European market. We propose a modeling of this two-level environmental policy, focusing on the levels of tax rates in each case of linkage. We obtain empirical estimations of the efforts that could be demanded to non-covered sectors and of the price(s) of carbon

Suggested Citation

  • Natacha Raffin & Katheline Schubert, 2007. "International Emissions Trading Scheme and European Emissions Trading Scheme: what linkages?," Documents de travail du Centre d'Economie de la Sorbonne v07040, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    • Handle: RePEc:mse:cesdoc:v07040
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    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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