Article
Economics
Jan Abrell, Johanna Cludius, Sascha Lehmann, Joachim Schleich, Regina Betz
Summary: This study analyses factors related to allowance-trading behaviour for the first ten years of the existence of the European Union Emissions Trading System (EU ETS). The findings suggest that trading behaviour is related to company size, net position, sector affiliation, productivity, and location. Net buyers are more likely to participate in emissions trading and trade at higher volumes than net sellers, which could lead to a violation of Coase's independence property.
ENVIRONMENTAL & RESOURCE ECONOMICS
(2022)
Article
Economics
Stefano F. Verde, Simone Borghesi
Summary: In this article, the international dimension of the EU Emissions Trading System (EU ETS) is analyzed through a review of facts and economic theory. The EU's experience in international cooperation and the impact of linking the EU ETS to the Kyoto flexible mechanisms are discussed. Looking ahead, the EU ETS has the potential to effectively reduce foreign emissions if competitiveness and distributional effects are addressed.
ENVIRONMENTAL & RESOURCE ECONOMICS
(2022)
Article
Energy & Fuels
Yuliya Lovcha, Alejandro Perez-Laborda, Iryna Sikora
Summary: The study found that fluctuations in the carbon price are mainly influenced by fundamental market variables, but individual contributions are not stable. Overall, the European Union's Emissions Trading System has started to work effectively.
Article
Energy & Fuels
Cristian Mardones, Jose Ortega
Summary: This study analyzes how different options to incorporate energy into a computable general equilibrium model's nested production structure impact outcomes when an emissions trading system is implemented. The results indicate that the KL-EM structure is the most suitable for simulating emissions trading systems, providing realistic results that are less sensitive to the values of elasticities of substitution.
Article
Economics
Katrin Oesingmann
Summary: The study suggests that EU ETS has no significant impact on aviation demand, while the airline ticket tax has a significant effect on demand between affected countries. Current policy measures may not be adequate in reducing aviation emissions.
Article
Business
Marc Baudry, Anouk Faure, Simon Quemin
Summary: This research developed an equilibrium model of emissions permit trading in the presence of fixed and proportional trading costs, finding that the trading costs have significant effects on permit prices and firms' behavior. The study suggests that ignoring trading costs may lead to underestimating the price impacts of supply-curbing policies, with differences varying among firms.
JOURNAL OF ENVIRONMENTAL ECONOMICS AND MANAGEMENT
(2021)
Article
Agricultural Economics & Policy
Simone Borghesi, Michael Pahle, Grischa Perino, Simon Quemin, Maximilian Willner
Summary: This article critically reviews the performance of the Market Stability Reserve (MSR) in the European Union Emissions Trading System, assessing its effectiveness in achieving various policy objectives. It covers conceptual aspects and quantitative assessments and highlights important policy implications and areas for further research.
ANNUAL REVIEW OF RESOURCE ECONOMICS
(2023)
Review
Economics
Simon Quemin
Summary: This article provides a quantitative assessment of policy options for the 2021 review of the EU Emissions Trading System (ETS) and raising climate ambition. The study finds that indirectly raising ambition through the Market Stability Reserve (MSR) is not equivalent to directly raising ambition through the emissions cap trajectory. Leveraging the MSR can improve efficiency by compensating for firms' bounded foresight through frontloading abatement efforts.
RESOURCE AND ENERGY ECONOMICS
(2022)
Review
Environmental Studies
Misato Sato, Ryan Rafaty, Raphael Calel, Michael Grubb
Summary: This paper analyzes the evolution of the European Union's carbon Emissions Trading System (EU ETS) from a political economy perspective, with a focus on allowance allocation, in order to provide insights and lessons for the design of more stable and effective CO2 markets in the future.
WILEY INTERDISCIPLINARY REVIEWS-CLIMATE CHANGE
(2022)
Article
Environmental Sciences
Reyer Gerlagh, Roweno J. R. K. Heijmans, Knut Einar Rosendahl
Summary: Carbon prices in the EU ETS have significantly increased in recent years, possibly due to the implementation of the cancellation mechanism in the Market Stability Reserve. This mechanism has resulted in massive cancellation of emissions allowances, leading to higher carbon prices. These findings have important implications for the planned revisions of the EU ETS.
ENVIRONMENTAL RESEARCH LETTERS
(2022)
Article
Green & Sustainable Science & Technology
Francesco Fuso Nerini, Tina Fawcett, Yael Parag, Paul Ekins
Summary: Personal carbon allowances (PCAs) could potentially boost climate mitigation efforts but must be carefully implemented to prevent negative impacts on Sustainable Development Goals (SDGs). This Perspective argues for the reconsideration of PCAs at this opportune moment and suggests a set of SDG-based design principles for future adoption of PCAs.
NATURE SUSTAINABILITY
(2021)
Article
Political Science
Jorgen Wettestad, Lars H. Gulbrandsen
Summary: The EU Commission has decided to include emissions from shipping in the EU emissions trading system, which represents a policy volte-face. This decision is explained by the competition for leadership among central actors at various levels in the EU, and the overall ambitions of the Commission.
POLITICS AND GOVERNANCE
(2022)
Article
Economics
Qianqian Hong, Linhao Cui, Penghui Hong
Summary: This study examines the impact of carbon emissions trading on energy efficiency and finds that it can significantly improve energy efficiency in cities, particularly in areas with high marketization and industrial agglomeration.
Article
Economics
Yanfang Zhang, Jinpeng Wei, Qi Gao, Xunpeng Shi, Dequn Zhou
Summary: The Chinese government implemented an energy-consumption permit trading scheme (ECPTS) and a carbon emissions trading scheme (ETS) in Fujian Province. The study found that coastal cities dominate the allocation of energy-consumption permits and carbon allowances, leading to economic inequality among cities in Fujian. However, by introducing the principle of equity, the allocation structure of energy-consumption permits can be adjusted to mitigate the distributional inequality in economic development rights among cities.
Editorial Material
Environmental Sciences
Manuel Linsenmeier, Adil Mohommad, Gregor Schwerhoff
Summary: Carbon pricing policies play a crucial role in combating climate change, and our research provides strong evidence that the adoption of these policies in one country influences the adoption in other countries. The diffusion of carbon pricing increases the likelihood of policy adoption by several percentage points for neighboring countries. By using Monte Carlo simulations, we estimate that the emissions reductions resulting from policy diffusion may surpass domestic emission reductions in many countries. These findings support the implementation of stringent climate policies, especially in countries with relatively low domestic emissions.
NATURE CLIMATE CHANGE
(2023)
Editorial Material
Economics
Carolyn Fischer, Grant D. Jacobsen
JOURNAL OF POLICY ANALYSIS AND MANAGEMENT
(2021)
Editorial Material
Economics
Carolyn Fischer, Grant D. Jacobsen
JOURNAL OF POLICY ANALYSIS AND MANAGEMENT
(2021)
Article
Economics
Rachel Brewster, Carolyn Fischer
Summary: The Korea-Radionuclides case involves SPS measures imposed by Korea on Japanese fishery products after the Fukushima Dai-ichi nuclear plant meltdown. Japan challenged the measures as overly restrictive, with the panel initially agreeing but the Appellate Body reversing the ruling due to insufficient examination of Korea's arguments.
WORLD TRADE REVIEW
(2021)
Correction
Environmental Sciences
Christoph Bohringer, Carolyn Fischer, Knut Einar Rosendahl, Thomas Fox Rutherford
NATURE CLIMATE CHANGE
(2022)
Review
Environmental Sciences
Christoph Boehringer, Carolyn Fischer, Knut Einar Rosendahl, Thomas Fox Rutherford
Summary: Border carbon adjustments are a measure to address carbon leakage and competitiveness concerns, but their viability is substantially reduced due to current legal and practical implementation constraints.
NATURE CLIMATE CHANGE
(2022)
Article
Economics
Carolyn Fischer, Michael Huebler, Oliver Schenker
Summary: This study analyzes how policy instruments should be adjusted to address under-internalized secondary market failures, finding that implementing the first-best policy portfolio is often difficult in practice. By calibrating a theoretical model to the European electricity sector, it is shown that relying solely on CO2 pricing increases the policy cost significantly, with uninternalized R&D spillovers contributing the most to this increase.
JOURNAL OF PUBLIC ECONOMICS
(2021)
Article
Business
Christoph Boehringer, Carolyn Fischer
Summary: As more governments consider implementing minimum domestic CO2 prices, this study explores three unilateral options for jurisdictions operating in a multilateral emissions trading system (ETS): an additional CO2 tax, an auction reserve policy to invalidate allowances, and an overcompliance requirement to charge domestic emitters for extra allowances. The study evaluates the economic incentives for unilateral action, including environmental benefits, fiscal benefits, and gains in terms of trade. The authors derive theoretically optimal unilateral price floors and provide numerical simulations for the EU ETS to demonstrate how a national government's preferred strategy depends on its valuation of fiscal benefits versus environmental benefits.
JOURNAL OF ENVIRONMENTAL ECONOMICS AND MANAGEMENT
(2023)
Article
Economics
Joseph E. Aldy, Dallas Burtraw, Carolyn Fischer, Meredith Fowlie, Roberton C. Williams, Maureen L. Cropper
Summary: This paper summarizes the discussions among renowned economists at the 2022 American Economic Association meetings on how the USA currently prices carbon and the potential for carbon pricing. Economists have long recommended taxing or pricing carbon emissions to incentivize their reduction.
JOURNAL OF BENEFIT-COST ANALYSIS
(2022)
Article
Economics
Carolyn Fischer, Timothy Meyer
WORLD TRADE REVIEW
(2020)
Article
Environmental Studies
Christian Flachsland, Michael Pahle, Dallas Burtraw, Ottmar Edenhofer, Milan Elkerbout, Carolyn Fischer, Oliver Tietjen, Lars Zetterberg
Article
Economics
Aaron Cosbey, Susanne Droege, Carolyn Fischer, Clayton Munnings
REVIEW OF ENVIRONMENTAL ECONOMICS AND POLICY
(2019)
Article
Economics
Carolyn Fischer, William A. Pizer
JOURNAL OF THE ASSOCIATION OF ENVIRONMENTAL AND RESOURCE ECONOMISTS
(2019)
Article
Economics
Carolyn Fischer, Thomas P. Lyon
JOURNAL OF THE ASSOCIATION OF ENVIRONMENTAL AND RESOURCE ECONOMISTS
(2019)
Review
Green & Sustainable Science & Technology
Thomas Sterner, Edward B. Barbier, Ian Bateman, Inge van den Bijgaart, Anne-Sophie Crepin, Ottmar Edenhofer, Carolyn Fischer, Wolfgang Habla, John Hassler, Olof Johansson-Stenman, Andreas Lange, Stephen Polasky, Johan Rockstrom, Henrik G. Smith, Will Steffen, Gernot Wagner, James E. Wilen, Francisco Alpiza, Christian Azar, Donna Carless, Carlos Chavez, Jessica Corial, Gustav Engstrom, Sverker C. Jagers, Gunnar Kohlin, Asa Lofgren, Hakan Pleijel, Amanda Robinson
NATURE SUSTAINABILITY
(2019)
Article
Economics
Carolyn Fischer, Biao Mao, Daniel Shawhan