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Changing the Allocation Rules in the EU ETS: Impact on Competitiveness and Economic Efficiency AgEcon
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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REDD in the Carbon Market: A General Equilibrium Analysis AgEcon
Bosello, Francesco; Eboli, Fabio; Parrado, Ramiro; Rosa, Renato.
Deforestation is a major source of CO2 emissions, accounting for around 17% of total annual anthropogenic carbon release. While the cost estimates of reducing deforestation rates vary considerably depending on model assumptions, it is widely accepted that emissions reductions from avoided deforestation consist of a relatively low cost mitigation option. Halting deforestation is therefore not only a major ecological challenge, but also a great opportunity to cost effectively reduce climate change negative impacts. In this paper we analyze the impact of introducing avoided deforestation credits into the European carbon market using a multiregional Computable General Equilibrium model – the ICES model (Inter-temporal Computable Equilibrium System). Taking...
Tipo: Working or Discussion Paper Palavras-chave: Forestry; Avoided Deforestation; Climate Change; Emission Trading; General Equilibrium Modelling; Environmental Economics and Policy; D58; Q23; Q54.
Ano: 2010 URL: http://purl.umn.edu/98100
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Banking Permits: Economic Efficiency and Distributional Effects AgEcon
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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Investments and Financial Flows Induced by Climate Mitigation Policies AgEcon
Bastianin, Andrea; Favero, Alice; Massetti, Emanuele.
In this paper we use the hybrid integrated model WITCH to quantify and analyze the investments and financial flows stimulated by a climate policy to stabilize Greenhouse Gases concentrations at 550ppm CO2-eq at the end of the century. We focus on investments to decarbonize the power sector and on investments in knowledge creation. We examine the financial flows associated with the carbon market and the implications for the international trade of oil. Criticalities in investment requirements will emerge when coal power plants with carbon capture and sequestration and nuclear power plants are deployed around 2020-2040, both in high and low income regions. Investments in energy related R&D increase sharply and might cause stress in the short term....
Tipo: Working or Discussion Paper Palavras-chave: Climate Change; Mitigation; Carbon Finance; Emission Trading; Energy Investments; Environmental Economics and Policy; Q01; Q43; Q54; O32; O11.
Ano: 2010 URL: http://purl.umn.edu/59418
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Governance and Environmental Policy Integration in Europe: What Can we learn from the EU Emission Trading Scheme? AgEcon
Sgobbi, Alessandra; Buchner, Barbara K.; Catenacci, Michela.
The European Union Emission Trading System (EU ETS) is a landmark environmental policy, representing the world's first large-scale greenhouse gas (GHG) trading program. The coexistence of state actors and top-down processes with stakeholders participation and flexible abatement strategies make the EU ETS a powerful instrument of cross sectoral integration of environmental concerns, which benefits from a high level of interaction among the actors involved and a significant degree of information exchange. However, the same peculiarities of the system make it difficult to identify a correspondence with a single mode of governance. The EU ETS shows characteristics of the decision making processes and institutions engaged, the tools and instruments used as...
Tipo: Working or Discussion Paper Palavras-chave: Environmental Policy Integration; Climate Change; Emission Trading; EU Policy; Environmental Economics and Policy; H23; F53; Q28.
Ano: 2007 URL: http://purl.umn.edu/9544
Registros recuperados: 5
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