Luca Taschini

In evaluating the impact of climate change-induced temperature changes on firms and investors, this paper shows that temperature variability rather than mean temperature has a material financial impact. Read more

In this paper the authors use Credit Default Swap (CDS) spreads to construct a forward-looking, market-implied carbon risk factor and study how, where and when carbon risk affects firms’ creditworthiness by examining whether firms’ exposure to carbon risk is reflected in the market prices of their CDS contracts. Read more

We formally study the flexibility of emissions permits and propose a unified framework to rationalise the impact of both investment/divestment lags and irreversibility in relation to the price of emissions permits. Read more

We investigate the combined effect of an Emissions Trading System (ETS) and renewable energy sources on investments in electricity capacity... Read more

We formally study the determinants, magnitude and distribution of efficiency gains generated in multilateral linkages between permit markets. We provide... Read more

We study the impact of a supply management mechanism (SMM) similar to the Market Stability Reserve proposed in 2015 which... Read more

This paper develops a novel theoretical tool with which a jurisdiction can evaluate the economic gains it can expect to obtain by linking its emissions trading system (ETS) to one, two or many ETSs at the same time, and proposes a reason why the global market remains a distant dream. Read more

Climate policy uncertainty significantly hinders investments in low-carbon technologies, and the global community is behind schedule to curb carbon emissions.... Read more

We propose a theory of the economic advantage (EA) of regulating carbon emissions by linking two emissions trading systems versus... Read more

We investigate how the correlations amongst commodity futures have changed since the early 2000s. Using data from 1998 to 2011,... Read more

Emissions Trading Systems (ETSs) with fixed caps lack provisions to address systematic imbalances in the supply and demand of permits in response to economic shocks. This paper proposes a new mechanism which adjusts the allocation of permits based on the current bank of permits to create a dynamic system of permit allocation. Read more

Acre State in Brazil is at the forefront of efforts to institutionalize jurisdictional-scale policies that aim to reduce emissions from... Read more

This working paper analyses the design of the market stability reserve proposed as part of the reform of the European Union emissions trading system. Read more

We propose a theory of the economic advantage (EA) of regulating carbon emissions by linking two emissions trading systems versus... Read more

We investigate the combined effect of an Emission Trading System (ETS) and renewable energy sources on electricity generation investment in... Read more

Laing, Timothy, Taschini, Luca and Palmer, Charles (2016). In: Environmental Conservation Read more

REDD (Reducing emissions from deforestation and forest degradation), broadened to REDD+, has recently emerged as a potentially important component of... Read more

Chapter 5 in Andrea Roncoroni, Gianluca Fusai, and Mark Cummins (eds.) Handbook of Multi-Commodity Markets and Products: Structuring, Trading and... Read more

Presentation given at the Cumberland Lodge Workshop organised by the European Institute at the LSE. Read more

This paper examines the design of conservation payments to landowners under uncertainty. Read more

The second ENTRACTE newsletter reflects the contribution of the GRI/LSE research project for a functioning climate policy taking into account... Read more

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

This paper examines the investment strategies of compliance companies in irreversible abatement technologies and the environmental achievements of the system... Read more

Environmental finance and investments Chesney, M., Gheyssens, J., and Taschini, L. 2013. Springer: UK. This book is intended to provide... Read more

Abstract This paper examines the investment strategies of compliance companies in irreversible abatement technologies and the environmental achievements of the... Read more

Abstract Market mechanisms are increasingly being used as a tool for allocating somewhat scarce but unpriced rights and resources, and... Read more

Abstract In principle, linking emission trading schemes would favour the depletion of low-cost abatement opportunities that are geographically spread over... Read more

Working Paper 72 Abstract The paper analyses the implications of landowners’ option values in land allocation and derives policy recommendations... Read more

Working Paper 45 Abstract This paper analyses the dynamic incentives for technology adoption under a transferable permits system, which allows... Read more

Working Paper 43 Abstract Two simple examples are constructed that help to clarify the role of a key assumption in... Read more

Working Paper 41 Abstract This paper examines the investment strategies of regulated companies in abatement technologies, market participants’ trading behaviours,... Read more

Abstract This paper examines the key design mechanisms of existing and proposed cap-and-trade markets. First, it is shown that the... Read more

Abstract This paper reviews fundamental concepts in environmental economics and explores theoretical results regarding the choice of the key policy... Read more

Working Paper 26 Abstract We examine the key design mechanisms of existing and proposed cap-and-trade markets. First, it is shown... Read more

Working Paper 25 Abstract We review fundamental concepts in environmental economics and explore theoretical results regarding the choice of the... Read more

Abstract This paper develops a simple model to evaluate the value and the activation frequencies of a generation system consisting... Read more

This policy brief examines the measures Taiwan can take to safeguard its industries from the potential adverse consequences of its new national carbon fee, and reviews relevant measures adopted in major carbon pricing jurisdictions, including the EU, Singapore and UK. Read more

This submission to the UK ETS Authority consultation on ‘Developing the UK Emissions Trading Scheme (ETS)’ provides evidence on implementing a net zero consistent ETS cap, Free Allocation policy, the expansion of the UK ETS to additional sectors, and incorporating greenhouse gas removal into the scheme. Read more

Report for the United Nations Economic Commission for Europe. This report has explored potential for CO2 storage in Eastern Europe, the... Read more

This report argues that carbon pricing alongside complementary policies can help Taiwan reduce its greenhouse gas emissions in a fair and cost-effective way. It assesses the options and identifies a clear path to carbon pricing in Taiwan. Read more

This is a response to the Bank of England's discussion paper, 'The 2021 biennial exploratory scenario on the financial risks from climate change'. The response has been prepared by authors from the Grantham Research Institute on Climate Change and the Environment at LSE, the Grantham Institute – Climate Change and the Environment at Imperial College London, and the University of Edinburgh Business School. Read more

This written evidence was submitted on 12 July 2019 to the joint consultation into ‘The future of carbon pricing’, being carried out by the UK, Scottish and Welsh Governments, and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland. Read more

Presentation given at ‘The impact of Brexit on the UK and European energy markets’ conference organised by Florence School of Regulation, European... Read more

This submission explores whether the UK should seek to stay in or leave the EU emissions trading system (EU ETS) as part of Brexit negotiations. It finds that leaving the EU ETS would result in the UK losing access to low-cost emission reduction opportunities that are only available in what is currently the world’s largest carbon market. It also highlights that leaving the EU ETS to link with other existing or planned emissions trading systems could generate significant administrative costs that potentially offset any economic benefits. Read more

Report explores what market and regulatory failures could inhibit the functioning of the EU ETS and result in deviations from the efficient abatement pathway. Read more

Ruben Lubowski, Alexander Golub, Rowan Parkhouse and Luca Taschini (2014) Chapter in ‘IETA GHG Market Report 2014’. External link to... Read more

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

This paper argues in favour of a reform of the European Union Emissions Trading System (EU ETS) that makes the... Read more

Main points The impact of ‘back-loading’, a short-term measure, will be limited. ‘Back-loading’ is unlikely to have a significant impact... Read more

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

Chapter 5 in Andrea Roncoroni, Gianluca Fusai, and Mark Cummins (eds.) Handbook of Multi-Commodity Markets and Products: Structuring, Trading and... Read more

Environmental finance and investments Chesney, M., Gheyssens, J., and Taschini, L. 2013. Springer: UK. This book is intended to provide... Read more

The EU’s carbon border adjustment mechanism has the potential to impact Britain’s electricity flow and undermine renewable energy exports - strategic policy measures are needed to mitigate these impacts, this commentary explains. Read more

Josh Burke and Luca Taschini explain the importance of the cap to the functioning of any emissions trading scheme and explore how carbon dioxide removal might best be integrated, as the UK government considers these issues. Read more

This commentary explains a new way to measure how the scope and speed of the economic transformation needed to mitigate climate change and the associated credit risk vary across sectors, jurisdictions and time. Read more

The impact of COVID-19 on the price of carbon illustrates just how important it is to build flexibility into cap-and-trade systems and this is something policymakers should remember for the design of the UK’s post-Brexit emissions trading system, argue Josh Burke and Luca Taschini. Read more

Letter published in Nature, 20 April Read more

As the UK prepares for Brexit, its future participation in the European Union Emissions Trading System (EU ETS) has yet... Read more

Luca Taschini and Baran Doda explain how carbon markets could play a crucial role in delivering promises made at the Paris climate conference. Read more

Research fellow, Luca Taschini, looks at the 'nitty gritty' of EU ETS reform. Read more

This column discusses how the Market Stability Reserve should be designed and whether it could improve the emissions trading. Read more

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

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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