All pages with keywords: emissions trading

The global consumer incidence of carbon pricing: evidence from trade

The global consumer incidence of carbon pricing: evidence from trade

a working paper by Lutz Sager 4 April, 2019

This paper estimates the global distribution of the costs to consumers from carbon pricing, finding that some policies may be considered regressive for their burden on poorer consumers – but that the benefits from mitigating climate change may weaken or reverse the regressive effect. read more »


For want of a chair: teaching price formation using a cap and trade game

For want of a chair: teaching price formation using a cap and trade game

a working paper by Stefano Carattini, Eli Fenichel, Alexander Gordan, Patrick Gourley 22 March, 2019

This paper describes the benefits of a game created as an active learning method to teach current and future decision-makers about the ‘cap and trade’ system, one of the most innovative policy options developed by environmental economists. read more »


China’s national carbon emissions trading scheme: lessons from the pilot emission trading schemes, academic literature, and known policy details

China’s national carbon emissions trading scheme: lessons from the pilot emission trading schemes, academic literature, and known policy details

a research article by Thomas Stoerk 27 January, 2019

Upon completion, China’s national emissions trading scheme (C-ETS) will be the largest carbon market in the world. Recent research has evaluated China’s seven pilot ETSs launched from 2013 on, and … read more »


Intertemporal emissions trading and market design: an application to the EU ETS

Intertemporal emissions trading and market design: an application to the EU ETS

a working paper by Simon Quemin, Raphaël Trotignon 9 January, 2019

The authors of this paper develop a model to assess the market stability reserve, a key feature of reforming the European Union’s emissions trading system (EU ETS), concluding that it is successful in raising the allowance price, but is limited in its ability to improve the system’s resilience to allowance demand shocks. read more »


What does the October 2018 Budget mean for UK carbon pricing in a no-deal Brexit?

a commentary by Josh Burke 30 October, 2018

To tax or to trade – that is the question. Following the October Budget, and as Brexit looms, Josh Burke assesses the policy landscape around carbon pricing in the UK. read more »


Trust and compliance:  evidence from the EU emissions trading scheme

Trust and compliance: evidence from the EU emissions trading scheme

a working paper by Ara Jo 4 June, 2018

This paper uses data on the compliance of installations regulated under the EU Emissions Trading Scheme to investigate how the levels of trust in a country affect the compliance of firms with regulations on climate change. read more »


Benchmarks for emissions trading – general principles for emissions scope

Benchmarks for emissions trading – general principles for emissions scope

a working paper by Misato Sato, Karsten Neuhoff, Vera Zipperer 20 December, 2017

Benchmarks within emissions trading schemes are used to determine the level of free allocation of permits to sectors at the risk of carbon leakage. This paper analyses how the design of such benchmarks can impact on firms’ production decisions and create efficient incentives for production and technology choices. read more »


Misato Sato

Solving the clinker dilemma with hybrid output-based allocation

a research article by Frédéric Branger, Misato Sato 18 January, 2017

Output-based allocation (OBA) is one of the main options discussed for addressing carbon leakage in emissions trading systems. This paper studies how different OBA designs affect incentives on mitigation … read more »


Carbon dating: When is it beneficial to link ETSs?

a working paper by Baran Doda, Luca Taschini 1 August, 2016

We propose a theory of the economic advantage (EA) of regulating carbon emissions by linking two emissions trading systems versus operating them under autarky. Linking implies that permits issued in … read more »


Renewables, allowances markets, and capacity expansion in energy-only markets

Renewables, allowances markets, and capacity expansion in energy-only markets

a working paper by Paolo Falbo, Cristian Pelizzari, Luca Taschini 13 July, 2016

We investigate the combined effect of an Emission Trading System (ETS) and renewable energy sources on electricity generation investment in energy-only markets. We propose a simple representation of the capacity … read more »