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Leaving an emissions trading scheme – insights from the United Kingdom

Author

Listed:
  • Richard S.J. Tol

    (Department of Economics, University of Sussex
    Department of Spatial Economics, Vrije Universiteit Amsterdam
    Institute for Environmental Studies, Vrije Universiteit Amsterdam
    Tinbergen Institute, Amsterdam)

Abstract

The United Kingdom may opt to leave the EU Emissions Trading System (ETS) for greenhouse gases. If so, a central plank of UK climate policy will need to be replaced at short notice. The UK is a large importer of emission permits, and meeting its climate policy targets would be much harder and dearer without the EU ETS. The impact on the EU would be limited, although UK permits circulating in the rest of the EU would lose their legal standing between Brexit and 2021. Non-EU countries take part in the EU ETS, and this appears to be the best option for the UK post-Brexit.

Suggested Citation

  • Richard S.J. Tol, 2017. "Leaving an emissions trading scheme – insights from the United Kingdom," Working Paper Series 1017, Department of Economics, University of Sussex Business School.
    • Handle: RePEc:sus:susewp:1017
    as

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    File URL: http://www.sussex.ac.uk/economics/documents/wps-10-2017.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    climate policy; tradable permits; Brexit; EU ETS;
    All these keywords.

    JEL classification:

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

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