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The authors of this paper develop a model to evaluate first, the market developments in the European Union emissions trading scheme (EU ETS) over 2008–2017 ex-post and second, the performances of main features of the EU ETS reforms that took place in 2018, ex-ante. 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

"The European Commission should reform the European Union Emissions Trading System by introducing new rules to automatically withdraw allowances when the carbon proce starts to fall too rapidly, according to a policy paper published today (22nd January, 2014) by the Grantham Research Institute on Climate Change and the Environment and the Centre for Climate Economics and Policy at the London School of Economics and Political Science. Read more

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