The author of this paper provides a quantitative assessment of policy options to inform the 2021 review of the EU Emissions Trading System (ETS) and raise climate ambition. They use a permit trading model in which firms utilize rolling finite planning horizons, which replicates historical price and banking developments well compared to an in- finite horizon. 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
The authors of this paper develop a theoretical model of emissions trading in the presence of transaction costs, calibrating the model to annual transactions and compliance data in the European Union emissions trading scheme over its second phase. Read more
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
Working Paper 45 Abstract This paper analyses the dynamic incentives for technology adoption under a transferable permits system, which allows... 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 33 Abstract Equilibrium models have been proposed in literature with the aim of describing the evolution of the... 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