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Recycling of Carbon Revenues in Bulgaria

Author

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  • Svetlana Gercheva

    (University of Economics - Varna, Varna, Bulgaria)

Abstract

The current paper deals with the recycling of CO2 allowances revenue, which Bulgaria receives at the regular auctions held within the EU Emission Trading System (EU ETS). Based on the normative and comparative approaches, the author concludes that the country has opted for a smart trajectory of carbon revenue recycling. The proceeds from national CO2 allowances are returned back to the Bulgarian economy fostering thereby clean electricity generation. EU ETS financial resources have been earmarked to the extrabudgetary fund "Security of the energy system". In turn, the latter channels the income from CO2 allowances towards reduction of the green component in the price "Obligations to the public". This recycling decision helps relieve the electricity cost burden of businesses and households in Bulgaria.

Suggested Citation

  • Svetlana Gercheva, 2021. "Recycling of Carbon Revenues in Bulgaria," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 10(3), pages 54-62, December.
    • Handle: RePEc:vra:journl:v:10:y:2021:i:3:p:54-62
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    File URL: http://su-varna.org/journal/IJUSV-ESS/2021.10.3/54-62.pdf
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    References listed on IDEAS

    as
    1. Monjon, Stéphanie & Quirion, Philippe, 2011. "Addressing leakage in the EU ETS: Border adjustment or output-based allocation?," Ecological Economics, Elsevier, vol. 70(11), pages 1957-1971, September.
    2. Frédéric Branger, Philippe Quirion, Julien Chevallier, 2017. "Carbon Leakage and Competitiveness of Cement and Steel Industries Under the EU ETS: Much Ado About Nothing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    3. repec:dau:papers:123456789/7346 is not listed on IDEAS
    4. David Klenert & Linus Mattauch & Emmanuel Combet & Ottmar Edenhofer & Cameron Hepburn & Ryan Rafaty & Nicholas Stern, 2018. "Making carbon pricing work for citizens," Nature Climate Change, Nature, vol. 8(8), pages 669-677, August.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    EU Emission Trading System; Bulgarian CO2 allowances; recycling; carbon revenue; clean electricity generation; price Obligations to the public.;
    All these keywords.

    JEL classification:

    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • 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

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