The EU Emission Trading Scheme. Allocation Patterns and Trading Flows
The EU Emission Trading Scheme (EU ETS) that covers emitters from industry and the energy sector representing 40 percent of the EU's total greenhouse gas emissions is the biggest implementation worldwide of a cap-and-trade scheme. The EU ETS has been the core instrument of European climate policy since its start in 2005. Based on a database comprising more than 10,000 installations in 26 EU countries, this paper provides a thorough analysis of the performance of the EU ETS in the period 2005 to 2010. In the first part, we analyse allocation patterns – i.e., the stringency of allocation caps and distribution issues – on EU country and sector level comparing the results of the EU ETS pilot phase and the first three years of the Kyoto phase. In the second part of the paper, we assess trading flows of European Allowance Units (EUAs) between EU countries comparing the results for the first and second trading period. Furthermore, we analyse the use of credits from flexible mechanisms – Certified Emission Reductions (CERs) from CDM projects and Emission Reduction Units (ERUs) from JI projects – that installations may surrender since the beginning of the second trading period on country level.
|Date of creation:||17 Oct 2011|
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- Barry Anderson & Corrado Di Maria, 2011.
"Abatement and Allocation in the Pilot Phase of the EU ETS,"
Environmental & Resource Economics,
Springer;European Association of Environmental and Resource Economists, vol. 48(1), pages 83-103, January.
- Corrado Di Maria & Barry Anderson & Frank Convery, 2009. "Abatement and Allocation in the Pilot Phase of the EU ETS," Working Papers 2009.110, Fondazione Eni Enrico Mattei.
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- Raphael Trotignon, 2011. "Combining cap-and-trade with offsets: Lessons from CER use in the EU ETS in 2008 and 2009," Working Papers 1103, Chaire Economie du Climat.
- Ellerman,A. Denny & Convery,Frank J. & de Perthuis,Christian, 2010. "Pricing Carbon," Cambridge Books, Cambridge University Press, number 9780521196475, December.
- Stefan P. Schleicher & Claudia Kettner & Angela Köppl & Gregor Thenius, 2007. "Stringency and Distribution in the EU Emissions Trading Scheme –The 2005 Evidence," Working Papers 2007.22, Fondazione Eni Enrico Mattei.
- Alexandre Kossoy & Philippe Ambrosi, . "State and Trends of the Carbon Market 2010," World Bank Other Operational Studies 13401, The World Bank.
- Frank Convery & Christian De Perthuis & Denny Ellerman, 2008. "The European Carbon Market In Action: Lessons From The First Trading Period. Interim Report," Working Papers 0802, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Claudia Kettner & Angela Köppl & Stefan Schleicher, 2010. "The EU Emission Trading Scheme. Insights from the First Trading Years with a Focus on Price Volatility," WIFO Working Papers 368, WIFO.
- Karan Capoor & Philippe Ambrosi, . "State and Trends of the Carbon Market 2009," World Bank Other Operational Studies 13403, The World Bank.
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