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Bosetti, Valentina; Carraro, Carlo; Massetti, Emanuele. |
Most analyses of the Kyoto flexibility mechanisms focus on the cost effectiveness of “where” flexibility (e.g. by showing that mitigation costs are lower in a global permit market than in regional markets or in permit markets confined to Annex 1 countries). Less attention has been devoted to “when” flexibility, i.e. to the benefits of allowing emission permit traders to bank their permits for future use. In the model presented in this paper, banking of carbon allowances in a global permit market is fully endogenised, i.e. agents may decide to bank permits by taking into account their present and future needs and the present and future decisions of all the other agents. It is therefore possible to identify under what conditions traders find it optimal to... |
Tipo: Working or Discussion Paper |
Palavras-chave: Emission Trading; Banking; Environmental Economics and Policy; International Relations/Trade; C72; H23; Q25; Q28. |
Ano: 2008 |
URL: http://purl.umn.edu/6362 |
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Demailly, Damien; Quirion, Philippe. |
We assess five proposals for the future of the EU greenhouse gas Emission Trading Scheme (ETS): pure grandfathering allocation of emission allowances (GF), output-based allocation (OB), auctioning (AU), auctioning with border adjustments (AU-BA), and finally output-based allocation in sectors exposed to international competition combined with auctioning in electricity generation (OB-AU). We look at the impact on production, trade, CO2 leakage and welfare. We use a partial equilibrium model of the EU 27 featuring three sectors covered by the EU ETS – cement, steel and electricity – plus the aluminium sector, which is indirectly impacted through a rise in electricity price. The leakage ratio, i.e. the increase in emissions abroad over the decrease in EU... |
Tipo: Working or Discussion Paper |
Palavras-chave: Emission Trading; Allowance Allocation; Leakage; Spillover; Climate Policy; Kyoto Protocol; Border Adjustment; Environmental Economics and Policy; Q5. |
Ano: 2008 |
URL: http://purl.umn.edu/46623 |
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