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Emissions Trading and the Optimal Timing of Production


  • Ehrhart, Karl-Martin

    () (Universitaet Karlsruhe)

  • Hoppe, Christian

    () (Universitaet Karlsruhe)

  • Schleich, Joachim

    (Fraunhofer Institute for Systems and Innovations Research, Karlsruhe)

  • Seifert, Stefan

    (Universitaet Karlsruhe, IWM)


We investigate the problem of optimally timing production schedules in an emissions trading regime that does not allow the transfer of unused allowances into future periods. We show that companies that produce storable goods partially shift the production to prior periods and imitate - by storing the output - emission rights banking. Competition distortions arise sectorally and intersectorally.

Suggested Citation

  • Ehrhart, Karl-Martin & Hoppe, Christian & Schleich, Joachim & Seifert, Stefan, 2004. "Emissions Trading and the Optimal Timing of Production," Sonderforschungsbereich 504 Publications 04-55, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
  • Handle: RePEc:xrs:sfbmaa:04-55 Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.

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