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The Ten-Year Rule: Allocation of Emission Allowances in the EU Emission Trading System AgEcon
Ahman, Markus; Burtraw, Dallas; Kruger, Joseph; Zetterberg, Lars.
In its guidance on National Allocation Plans (NAPs), the European Commission has discouraged Member States from adopting allocation methodologies that would provide incentives to firms affecting their compliance behavior. The purpose is to promote economic efficiency and to prevent strategic behavior that deviates from individual and collective cost-minimization. For example, some methodologies would reward one type of compliance investment over another. To discourage such actions, the EU Emission Trading System guidelines prohibit ex post redistribution of emission allowances within an allocation period based on behavior in that period. Similarly, the Commission has indicated that decisions about the initial distribution of allowances in the second phase...
Tipo: Working or Discussion Paper Palavras-chave: Emission trading; Allowance allocations; Closures; New entrants; Tradable permits; Air pollution; Cost-effectiveness; Greenhouse gases; Climate change; Global warming; Carbon dioxide; Environmental Economics and Policy; Q2; Q25; Q4; L94.
Ano: 2005 URL: http://purl.umn.edu/10637
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