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Efficiency, Compensation, and Discrimination: What is at Stake When Implementing the EU Emissions Trading Scheme?

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  • Böhringer, Christoph
  • Lange, Andreas

Abstract

In 2005, an EU-wide emissions trading scheme covering major CO2 producing sites shall come into power. The key objective of the trading scheme is to promote cost-efficiency of carbon reduction within the EU. We identify policy-relevant tradeoffs between overall efficiency, compensation and competitive neutrality which arise in the concrete implementation of the EU emissions trading scheme through National Allocation Plans.

Suggested Citation

  • Böhringer, Christoph & Lange, Andreas, 2003. "Efficiency, Compensation, and Discrimination: What is at Stake When Implementing the EU Emissions Trading Scheme?," ZEW Discussion Papers 03-73, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:1683
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    File URL: https://www.econstor.eu/bitstream/10419/24023/1/dp0373.pdf
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    References listed on IDEAS

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    1. Christoph Böhringer & Andreas Lange, 2005. "Economic Implications of Alternative Allocation Schemes for Emission Allowances," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 563-581, September.
    2. Bohringer, Christoph & Lange, Andreas, 2005. "On the design of optimal grandfathering schemes for emission allowances," European Economic Review, Elsevier, vol. 49(8), pages 2041-2055, November.
    3. Böhringer, Christoph & Jensen, Jesper & Rutherford, Thomas F., 1999. "Energy market projections and differentiated carbon abatement in the European Union," ZEW Discussion Papers 99-11, ZEW - Leibniz Centre for European Economic Research.
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    Cited by:

    1. Enrica De Cian & Ilkka Keppo & Johannes Bollen & Samuel Carrara & Hannah Förster & Michael Hübler & Amit Kanudia & Sergey Paltsev & Ronald D. Sands & Katja Schumacher, 2013. "European-Led Climate Policy Versus Global Mitigation Action: Implications On Trade, Technology, And Energy," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(supp0), pages 1-28.
    2. Brigitte Knopf & Yen-Heng Henry Chen & Enrica De Cian & Hannah Förster & Amit Kanudia & Ioanna Karkatsouli & Ilkka Keppo & Tiina Koljonen & Katja Schumacher & Detlef P. Van Vuuren, 2013. "Beyond 2020 — Strategies And Costs For Transforming The European Energy System," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(supp0), pages 1-38.
    3. Hannah Förster & Katja Schumacher & Enrica De Cian & Michael Hübler & Ilkka Keppo & Silvana Mima & Ronald D. Sands, 2013. "European Energy Efficiency And Decarbonization Strategies Beyond 2030 — A Sectoral Multi-Model Decomposition," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(supp0), pages 1-29.
    4. Hübler, Michael & Löschel, Andreas, 2013. "The EU Decarbonisation Roadmap 2050—What way to walk?," Energy Policy, Elsevier, vol. 55(C), pages 190-207.
    5. Hübler, Michael & Voigt, Sebastian & Löschel, Andreas, 2014. "Designing an emissions trading scheme for China—An up-to-date climate policy assessment," Energy Policy, Elsevier, vol. 75(C), pages 57-72.

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    More about this item

    Keywords

    emissions trading; allowance allocation; competition; National Allocation Plans; computable general equilibrium;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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