Dr Luca Taschini

Senior Dahrendorf Research Fellow

Luca is an economist, working at the intersection of environmental economics, energy markets, and industrial organisation. His current research investigates how market-based environmental regulation – and emissions trading schemes in particular – are working in theory and in practice. More specifically, he is studying the functioning of price containment mechanisms, participation restrictions, the linkage of markets and the investigation of policy controls able to promote technology adoption.

Luca is Chair of the the Dahrendorf Economic Working Group, looking at economics and climate change and he is leading the FP7 Entracte project on the EU ETS reform.

He is also a visiting scholar at the Joint Program on the Science and Policy of Global Change (MIT) and at the Research Center for Sustainability Science (Ritsumeikan University – Japan).

Background

Luca holds a PhD in finance from the University of Zurich.

Research interests

  • Permits market design, price manipulation and participation restrictions;
  • Experimental markets for emission permits;
  • Investment decisions under uncertainty;
  • Energy economics;
  • Real options.
Research article  6 October, 2014

FP7 Entracte project

The second ENTRACTE newsletter reflects the contribution of the GRI/LSE research project for a functioning climate policy taking into account a careful design. It gives an overview about recent research … read more »

 3 September, 2014

The Reform of the EU ETS: A Responsiveness Mechanism

Conference presentation presented at the Emissions Trading in the 2030 Framework conference at Universite Paris Dauphine, September 3, 2014 read more »

Research article  10 August, 2014

Experimental comparison between markets on dynamic permit trading and investment in irreversible abatement with and without non-regulated companies

Taschini, L., Chesney, C., and Wang, M. (2014) . Journal of Regulatory Economics, August 2014, Vol 46 (1):23-50  

2013

Book  1 October, 2013

Environmental finance and investments

Environmental finance and investments Chesney, M., Gheyssens, J., and Taschini, L. 2013. Springer: UK. This book is intended to provide students and practitioners the knowledge and theoretical tools they need … read more »

Research article  21 March, 2013

Experimental comparison between markets on dynamic permit trading and investment in irreversible abatement with and without non-regulated companies

This paper examines the investment strategies of compliance companies in irreversible abatement technologies and the environmental achievements of the system in an inter-temporal cap-and-trade market using laboratory experiments. The … read more »

2012

Research article  20 February, 2012

The endogenous price dynamics of emission allowances and an application to CO2 option pricing

Market mechanisms are increasingly being used as a tool for allocating somewhat scarce but unpriced rights and resources, and the European Emission Trading Scheme is an example. By means … read more »

Research article  20 February, 2012

Linking emission trading schemes

In principle, linking emission trading schemes would favour the depletion of low-cost abatement opportunities that are geographically spread over the globe. However, this would only be possible if the … read more »

Working paper  1 January, 2012

Cost-effective payments for reducing emissions from deforestation under uncertainty

The paper analyses the implications of landowners’ option values in land allocation and derives policy recommendations for payments for Reducing Emissions from Deforestation and Forest Degradation … read more »

2011

Working paper  1 May, 2011

Pollution permits, strategic trading and dynamic technology adoption

This paper analyses the dynamic incentives for technology adoption under a transferable permits system, which allows for strategic trading on the permit market. Initially, firms can … read more »

Working paper  1 March, 2011

The role of stocks and shocks concepts in the debate over price vs. quantity

Two simple examples are constructed that help to clarify the role of a key assumption in the analysis of price or quantity controls of greenhouse gases … read more »

Working paper  1 March, 2011

Experimental comparison between markets on dynamic permit trading and investment in irreversible abatement with and without nonregulated companies

This paper examines the investment strategies of regulated companies in abatement technologies, market participants’ trading behaviours, and the liquidity level in an inter-temporal cap and trade … read more »

Research article  19 January, 2011

Cap-and-trade properties under different hybrid scheme designs

This paper examines the key design mechanisms of existing and proposed cap-and-trade markets. First, it is shown that the hybrid systems under investigation (price floor using a minimum price … read more »

2010

Research article  18 December, 2010

Environmental economics and modelling marketable permits

This paper reviews fundamental concepts in environmental economics and explores theoretical results regarding the choice of the key policy instruments for the control of externalities: taxes, subsidies and marketable … read more »

Research article  18 October, 2010

Cap-and-trade properties under different hybrid scheme designs

This paper examines the key design mechanisms of existing and proposed cap-and-trade markets. First, it is shown that the hybrid systems under investigation (price floor using a minimum price … read more »

Working paper  1 September, 2010

Cap-and-trade properties under different hybrid scheme designs

We examine the key design mechanisms of existing and proposed cap-and-trade markets. First, it is shown that the hybrid systems under investigation (price floor using a … read more »

Working paper  1 September, 2010

Environmental economics and modelling marketable permits

We review fundamental concepts in environmental economics and explore theoretical results regarding the choice of the key policy instruments for the control of externalities: taxes, subsidies … read more »

Research article  18 July, 2010

The real option to fuel switch in the presence of expected windfall profits under the EU Emission Trading Scheme

This paper develops a simple model to evaluate the value and the activation frequencies of a generation system consisting of coal-fired and a gas-fired power plants using a real … read more »

More in research publications

Policy paper  16 October, 2014

Submission to the inquiry by the House of Commons Select Committee on Energy and Climate Change on ‘Linking Emissions Trading Systems’

Paper looks at what are the main challenges to linking emissions trading systems and what are the consequences of failing to address them adequately. read more »

Policy paper  1 January, 2014

System responsiveness and the European Union Emissions Trading System

This paper argues in favour of a reform of the European Union Emissions Trading System (EU ETS) that makes the system more responsive to unexpected price shocks. The paper proposed … read more »

2013

Policy paper  1 March, 2013

Options for structural measures to improve the European Union Emissions Trading System: response to a European Commission consultation

Main points The impact of ‘back-loading’, a short-term measure, will be limited. ‘Back-loading’ is unlikely to have a significant impact on the price of emissions allowances, unless the ‘back-loaded’ allowances … read more »

2011

Policy paper  1 January, 2011

The 'surrender charge' on international units in the Australian ETS

Cameron Hepburn, Sarah Chapman, Baran Doda, Chris Duffy, Samuel Fankhauser, James Rydge, Kathryn Smith, Luca Taschini and Alessandro Vitelli

More in policy publications

In the news  13 October, 2014

EU plans to revive lifeless carbon market

EU leaders will try to resuscitate the Emissions Trading System, the world’s biggest cap-and-trade market, and redeploy it on the frontline of the battle against climate change. read more »

In the news  19 January, 2014

European Commission resists calls for carbon ‘central bank’

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/78c72aca-80ec-11e3-95aa-00144feab7de.html#ixzz3HdnxY4WU The European Commission has resisted calls for a carbon “central bank” to revive Europe’s moribund emissions trading system but is poised to unveil a less ambitious plan to fix flaws in a market that has foundered since the global financial crisis slashed prices. read more »

More in news

Grantham Workshop 5 Mar 2014

Reform of the EU ETS: Assessment of different "responsive" mechanisms

Speaker: Luca Taschini

2010

Grantham Workshop, Policy Seminars 2 Nov 2010

Current Challenges in the Carbon Markets

Current Challenges in the Carbon Markets read more »

More in events

2013

Book  1 October, 2013

Environmental finance and investments

Environmental finance and investments Chesney, M., Gheyssens, J., and Taschini, L. 2013. Springer: UK. This book is intended to provide students and practitioners the knowledge and theoretical tools they need … read more »

More in book publications