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
The Market Stability Reserve aims to provide carbon price stability for the EU emissions trading system (EU ETS) but serious questions are being asked about how much stability – if any – it provides, say Michael Pahle and Simon Quemin. Read more
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
