[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/oup/renvpo/v10y2016i1p89-107..html
   My bibliography  Save this article

The European Union Emissions Trading System: Ten Years and Counting

Author

Listed:
  • A. Denny Ellerman
  • Claudio Marcantonini
  • Aleksandar Zaklan
Abstract
This article provides an introduction to the European Union (EU) Emissions Trading System (ETS). First we describe the legislative development of the EU ETS, its evolution from free allocation to auctioning and centralized allocation rules, its relationship to the Kyoto Protocol and other trading systems, and its relationship to other EU climate and energy policies. This is followed by an assessment of the performance of the EU ETS, which focuses in particular on emissions, allowance prices, and the use of offsets. We conclude with a discussion of the current debate about the future of the EU ETS and proposals for changes to both the EU ETS and the climate policy environment in which it operates. (JEL: Q54, Q58)

Suggested Citation

  • A. Denny Ellerman & Claudio Marcantonini & Aleksandar Zaklan, 2016. "The European Union Emissions Trading System: Ten Years and Counting," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 89-107.
    • Handle: RePEc:oup:renvpo:v:10:y:2016:i:1:p:89-107.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/reep/rev014
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ralf Martin & Mirabelle Muûls & Ulrich J. Wagner, 2016. "The Impact of the European Union Emissions Trading Scheme on Regulated Firms: What Is the Evidence after Ten Years?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 129-148.
    2. Ellerman,A. Denny & Buchner,Barbara K. & Carraro,Carlo (ed.), 2007. "Allocation in the European Emissions Trading Scheme," Cambridge Books, Cambridge University Press, number 9780521875684, September.
    3. repec:dau:papers:123456789/10174 is not listed on IDEAS
    4. Beat Hintermann & Sonja Peterson & Wilfried Rickels, 2016. "Price and Market Behavior in Phase II of the EU ETS: A Review of the Literature," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 108-128.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dechezleprêtre, Antoine & Nachtigall, Daniel & Venmans, Frank, 2023. "The joint impact of the European Union emissions trading system on carbon emissions and economic performance," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    2. Schleich, Joachim & Lehmann, Sascha & Cludius, Johanna & Abrell, Jan & Betz, Regina Annette & Pinkse, Jonatan, 2020. "Active or passive? Companies' use of the EU ETS," Working Papers "Sustainability and Innovation" S07/2020, Fraunhofer Institute for Systems and Innovation Research (ISI).
    3. Woo, C.K. & Chen, Y. & Olson, A. & Moore, J. & Schlag, N. & Ong, A. & Ho, T., 2017. "Electricity price behavior and carbon trading: New evidence from California," Applied Energy, Elsevier, vol. 204(C), pages 531-543.
    4. Woo, C.K. & Olson, A. & Chen, Y. & Moore, J. & Schlag, N. & Ong, A. & Ho, T., 2017. "Does California's CO2 price affect wholesale electricity prices in the Western U.S.A.?," Energy Policy, Elsevier, vol. 110(C), pages 9-19.
    5. Flori, Andrea & Borghesi, Simone & Marin, Giovanni, 2024. "The environmental-financial performance nexus of EU ETS firms: A quantile regression approach," Energy Economics, Elsevier, vol. 131(C).
    6. Svetlana V. Doroshenko & Anna D. Mingaleva, 2020. "Carbon Exchanges: European Experience in Developing the Mechanism of Emission Permit Trading," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 4, pages 52-68, August.
    7. Germeshausen, Robert, 2018. "The European Union emissions trading scheme and fuel efficiency of fossil fuel power plants in Germany," ZEW Discussion Papers 18-007, ZEW - Leibniz Centre for European Economic Research.
    8. Hintermann, Beat & Ludwig, Markus, 2023. "Home country bias in international emissions trading: Evidence from the EU ETS," Resource and Energy Economics, Elsevier, vol. 71(C).
    9. Claudia Kettner-Marx & Daniela Kletzan-Slamanig & Angela Köppl, 2012. "The EU Emission Trading Scheme. National Allocation Patterns and Trading Flows," WIFO Studies, WIFO, number 44139.
    10. Fang, Sheng & Lu, Xinsheng & Li, Jianfeng & Qu, Ling, 2018. "Multifractal detrended cross-correlation analysis of carbon emission allowance and stock returns," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 509(C), pages 551-566.
    11. Löschel, Andreas & Lutz, Benjamin Johannes & Managi, Shunsuke, 2019. "The impacts of the EU ETS on efficiency and economic performance – An empirical analyses for German manufacturing firms," Resource and Energy Economics, Elsevier, vol. 56(C), pages 71-95.
    12. Huang, Wenyang & Zhao, Jianyu & Wang, Xiaokang, 2024. "Model-driven multimodal LSTM-CNN for unbiased structural forecasting of European Union allowances open-high-low-close price," Energy Economics, Elsevier, vol. 132(C).
    13. Stuart Evans & Michael A. Mehling & Robert A. Ritz & Paul Sammon, 2021. "Border carbon adjustments and industrial competitiveness in a European Green Deal," Climate Policy, Taylor & Francis Journals, vol. 21(3), pages 307-317, March.
    14. Johan Lilliestam & Anthony Patt & Germán Bersalli, 2022. "On the quality of emission reductions: observed effects of carbon pricing on investments, innovation, and operational shifts. A response to van den Bergh and Savin (2021)," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 733-758, November.
    15. Quemin, Simon & Trotignon, Raphaël, 2021. "Emissions trading with rolling horizons," Journal of Economic Dynamics and Control, Elsevier, vol. 125(C).
    16. Xu, Yingying & Salem, Sultan, 2021. "Explosive behaviors in Chinese carbon markets: are there price bubbles in eight pilots?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    17. Bretschger, Lucas & Jo, Ara, 2024. "Complementarity between labor and energy: A firm-level analysis," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).
    18. Stephen Lecourt & Clément Pallière & Oliver J. Sartor, 2013. "The impact of emissions-performance benchmarking on free allocations in EU ETS Phase 3," Working Papers hal-00809096, HAL.
    19. Yue Dai & Nan Li & Rongrong Gu & Xiaodong Zhu, 2018. "Can China’s Carbon Emissions Trading Rights Mechanism Transform its Manufacturing Industry? Based on the Perspective of Enterprise Behavior," Sustainability, MDPI, vol. 10(7), pages 1-16, July.
    20. Li, Y.P. & Huang, G.H. & Li, M.W., 2014. "An integrated optimization modeling approach for planning emission trading and clean-energy development under uncertainty," Renewable Energy, Elsevier, vol. 62(C), pages 31-46.

    More about this item

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:renvpo:v:10:y:2016:i:1:p:89-107.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aereeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.