WorldWideScience

Sample records for emissions allowance trading

  1. Economic rationale for an emission allowance trading program

    International Nuclear Information System (INIS)

    Anon.

    1992-01-01

    The assumption behind the economic model of allowance trading is that managers of firms are better at solving pollution abatement problems than government overseers. This is because firms know more than an environmental regulator about their own operations and because the profit motive, rather than direct government mandate of compliance decisions, may be more effective at minimizing emission control costs. The allowance trading program in the CAAA is designed to provide firms with an incentive to make good choices about how to reduce emissions by allowing the firm to reduce compliance cost and profit from trading. This chapter discusses the benefits of allowance trading and summarizes the economic literature on tradable pollution rights. 17 refs., 2 figs

  2. The EU Emissions Trading Scheme. Allowance Prices, Trade Flows, Competitiveness Effects

    International Nuclear Information System (INIS)

    Klepper, G.; Peterson, S.

    2004-03-01

    The upcoming European Emissions Trading Scheme (ETS) is one of the more controversial climate policy instruments. Predictions about its likely impact and its performance can at present only be made to a certain degree. As long as the National Allocations Plans are not finally settled the overall supply of allowances is not determined. In this paper we will identify key features and key impacts of the EU ETS by scanning the range of likely allocation plans using the simulation model DART. The analysis of the simulation results highlights a number of interesting details in terms of allowance trade flows between member countries, of allowance prices, and in terms of the role of the accession countries in the ETS

  3. Strategic partitioning of emission allowances under the EU Emission Trading Scheme

    Energy Technology Data Exchange (ETDEWEB)

    Boehringer, Christoph [Univ. of Oldenburg, Department of Economics, and Centre for European Economic Research (ZEW) (Germany); Rosendahl, Knut Einar [Statistics Norway, Research Department, Pob. 8131 Dep., N-0033 Oslo (Norway)

    2009-08-15

    The EU Emission Trading Scheme (ETS) is breaking new ground in the experience with emission trading regimes across multiple jurisdictions. Since the EU ETS covers only some industries, it implies a hybrid emission control scheme where EU member states must apply complementary domestic emissions regulation for the non-trading sectors of their economies in order to comply with their national emission reduction targets. The EU ETS thus opens up for strategic partitioning of national emissions budgets by the member states between trading and non-trading sectors. In this paper we examine the potential effects of such strategic behavior on compliance cost and emissions prices. We show that concerns on efficiency losses from strategic partitioning are misplaced. In turn, our analysis implicitly indicates significant political economy forces behind EU climate policy, as both cost-effective and strategically motivated partitioning of national emission budgets are far off from the actual break-down between trading and non-trading sectors. (author)

  4. Public Interest vs. Interest Groups: Allowance Allocation in the EU Emission Trading Scheme

    Energy Technology Data Exchange (ETDEWEB)

    Anger, Niels; Oberndorfer, Ulrich (Centre for European Economic Research, Mannheim (Germany)); Boehringer, Christoph (Carl von Ossietzky Univ., Oldenburg (Germany))

    2008-07-01

    We assess the political-economy determinants of allowance allocation in the EU Emissions Trading Scheme (EU ETS). A common-agency model suggests that the government considers the preferences of sectoral interest groups when allocating emissions permits, so that industries with a more powerful lobby face a lower regulatory burden. An empirical analysis of the first trading phase of the EU ETS corroborates our theoretical prediction, but also reveals that the political-economy determinants of permit allocation are more complex. Employing instrumental-variable estimation technique, we find that large carbon emitters that were represented by powerful interest groups received higher levels of emissions allowances

  5. Emissions Trading

    NARCIS (Netherlands)

    Woerdman, Edwin; Backhaus, Juergen

    2014-01-01

    Emissions trading is a market-based instrument to achieve environmental targets in a cost-effective way by allowing legal entities to buy and sell emission rights. The current international dissemination and intended linking of emissions trading schemes underlines the growing relevance of this

  6. Emission allowances stall in marketplace

    International Nuclear Information System (INIS)

    Malec, W.F.

    1993-01-01

    Misinformation and public misunderstanding have given emissions trading a bad reputation in the public marketplace, says William F. Malec, executive vice president of the Tennessee Valley Authority (TVA), in Knoxville, Tennessee. Media coverage of a May 1992 emissions-allowance trade between TVA and Wisconsin Power and Light open-quotes focused on the agreement's pollution-trading aspects, not its overall potential economic and environmental benefits,close quotes Malec says. Such negative portrayal of TVA's transaction sparked severe public criticism and charges that emissions trading gives utilities the right to pollute. open-quotes The fact is that TVA sought the emissions-trading agreement as a means to reduce overall emissions in the most cost-effective way,close quotes Malec explains. Emissions trading allows a company with emission levels lower than clean-air standards to earn open-quotes credits.close quotes These credits then may be purchased by a company with emission levels that exceed federal standards. Under this arrangement, the environment is protected and companies that buy credits save money because they do not have to purchase expensive emissions-control devices or reduce their production levels. Malec says TVA decided to enter into the emissions-allowance market, not only to cut costs, but also to publicize the existence and benefits of emissions trading. However, TVA's experience proves that open-quotes people will not accept what they do not understand,close quotes concludes Malec, open-quotes especially when complex environmental issues are involved.close quotes

  7. Impacts on CO2 Emission Allowance Prices in China: A Quantile Regression Analysis of the Shanghai Emission Trading Scheme

    Directory of Open Access Journals (Sweden)

    Jie Zhang

    2016-11-01

    Full Text Available A pilot regional carbon emission trading scheme (ETS has been implemented in China for more than two years. An investigation into the impacts of different factors on carbon dioxide (CO2 emission allowance prices provides guidance for price-making in 2017 when the nation-wide ETS of China will be established. This paper adopts a quantile regression approach to estimate the impacts of different factors in Shanghai emission trading scheme (SH-ETS, namely, economic growth, energy prices and temperature. The empirical analysis shows that: (i the economic growth in Shanghai leads to a drop in the carbon allowance prices; (ii the oil price has a slightly positive effect on the allowance prices regardless of the ordinary least squares (OLS or quantile regression method; (iii a long-run negative relationship exists between the coal price and the Shanghai emission allowances (SHEA prices, but a positive interaction under different quantiles, especially the 25%–50% quantiles; (iv temperature has a significantly positive effect at the 20%–30% quantiles and a conspicuous negative impact at the right tail of the allowances prices.

  8. The greenhouse gases emissions allowances trading in the Czech Republic

    International Nuclear Information System (INIS)

    Chemisinec, Igor; Marvan, Miroslav; Tuma, Jiri

    2006-01-01

    The energy policy of the State is very important for a state development. The aim of this policy is power energy development, which is essential for improving the quality of life and standards of people's living in every country. Unfortunately, power energy development also has a negative impact; primarily on the environment. Some possible solutions exist for reduction of the power energy negative impacts. This paper deals with reduction of greenhouse gases (GHG) emissions in the Czech Republic according to the Kyoto protocol to the United Nations Framework Convention climate change. The ultimate objective of the United Nations Framework Convention on Climate Change is to achieve stabilization of greenhouse gas concentrations in the atmosphere. The GHG emissions allowances trading as one of the instruments for stabilisation of GHG emissions is described in the paper. (authors)

  9. Trading sulfur dioxide allowances

    International Nuclear Information System (INIS)

    Goldburg, C.B.; Lave, L.B.

    1992-01-01

    The 1990 Clean Air Act is aimed at generators larger than 25 MW, as these are the largest polluters. Market incentives give each source an emissions allocation but also flexibility. If a plant has lower emissions than the target, it can sell the 'surplus' emissions as allowances to plants that fail to meet the target. Only a few trades have occurred to date. Market-based incentives should lower the costs of improving environmental quality significantly. However, currently institutional dificulties hamper implementation

  10. ECO2, Emissions Trading Services, development project

    International Nuclear Information System (INIS)

    Ruokonen, A.

    2006-01-01

    Emissions Trading started within EU at the beginning of 2005. It caused substantial changes to the business environment of energy companies and energy intensive industry. The planning of Emissions Trading is a complicated process and companies will need consulting, IT systems and other services. Emissions Trading introduces a new factor of production emission allowances, which are tradable commodities. In future, Emissions Trading emissions, emission allowances and the prices of emission allowances have to be considered during the fuel purchasing and the energy production planning. And the best possible knowledge of the own emissions balance and market situation has a monetary value when trading emission allowances. Allocation of emission allowances has done in each country according to National Allocation Plan (NAP), accepted by EU. Finland itself and thus also the Finnish companies will be net buyers of emission allowances in long run. That means commonly that the Finnish companies have to buy more allowances meaning some extra costs to the companies. That's why it is very important to develop and provide to the companies an innovatory emissions planning, follow-up, management and reporting systems. With good emission balance management the extra costs of Emissions Trading will be as low as possible. In ECO2 project, Empower together with Power-Deriva, developed Expert services, Emissions Balance Management and Reporting services and Risk Management services for Emissions Trading and needed software and tools for these services. (orig.)

  11. Banking behavior under uncertainty: Evidence from the US Sulfur Dioxide Emissions Allowance trading program

    International Nuclear Information System (INIS)

    Rousse, Olivier; Sevi, Benoit

    2006-02-01

    The aim of this paper is to examine portfolio management of emission allowances in the US Sulfur Dioxide Emissions Allowance Trading Program, to determine whether utilities have a real motive to bank when risk increases. We test a theoretical model linking the motivation of the firm to accumulate permits in order to prepare itself to face a risky situation in the future. Empirical estimation using data for years 2001 to 2004 provides evidence of a relationship between banking behavior and uncertainty the utility is facing with. (authors)

  12. Sulfur dioxide allowances. Trading and technological progress

    International Nuclear Information System (INIS)

    Kumar, Surender; Managi, Shunsuke

    2010-01-01

    The US Clean Air Act Amendments introduce an emissions trading system to regulate SO 2 emissions. This study finds that changes in SO 2 emissions prices are related to innovations induced by these amendments. We find that electricity-generating plants are able to increase electricity output and reduce emissions of SO 2 and NO x from 1995 to 2007 due to the introduction of the allowance trading system. However, compared to the approximate 8% per year of exogenous technological progress, the induced effect is relatively small, and the contribution of the induced effect to overall technological progress is about 1-2%. (author)

  13. Emission trading: A discussion paper

    International Nuclear Information System (INIS)

    1992-05-01

    Emission trading is a market-based incentive program designed to control air emissions in which a cap is placed on the total quantity of pollutants allowed to be emitted in an airshed. Appropriate shares of this amount are allocated among participating emission sources, and participants can buy or sell their shares. Advantages of emission trading include its potential to achieve air emission targets at a lower cost than the traditional command and control approach, and its ability to accommodate economic growth without compromising environmental quality. A study was conducted to evaluate the potential use of emission trading programs to achieve emission reduction goals set for nitrogen oxides, volatile organic compounds (VOC), and sulfur oxides. Emission trading programs in the USA are reviewed and a set of factors important for the success of emission trading are identified. Key policy and design issues related to an emission trading program are identified, explained, and discussed. Administrative issues are then analyzed, such as legislative authority, monitoring and enforcement requirements, and trading between jurisdictions. A preliminary assessment of emission trading for control of NOx and VOC in the Lower Fraser Valley indicates that emission trading would be feasible, but legislative authority to implement such a program would have to be introduced

  14. Statistical regularities of Carbon emission trading market: Evidence from European Union allowances

    Science.gov (United States)

    Zheng, Zeyu; Xiao, Rui; Shi, Haibo; Li, Guihong; Zhou, Xiaofeng

    2015-05-01

    As an emerging financial market, the trading value of carbon emission trading market has definitely increased. In recent years, the carbon emission allowances have already become a way of investment. They are bought and sold not only by carbon emitters but also by investors. In this paper, we analyzed the price fluctuations of the European Union allowances (EUA) futures in European Climate Exchange (ECX) market from 2007 to 2011. The symmetric and power-law probability density function of return time series was displayed. We found that there are only short-range correlations in price changes (return), while long-range correlations in the absolute of price changes (volatility). Further, detrended fluctuation analysis (DFA) approach was applied with focus on long-range autocorrelations and Hurst exponent. We observed long-range power-law autocorrelations in the volatility that quantify risk, and found that they decay much more slowly than the autocorrelation of return time series. Our analysis also showed that the significant cross correlations exist between return time series of EUA and many other returns. These cross correlations exist in a wide range of fields, including stock markets, energy concerned commodities futures, and financial futures. The significant cross-correlations between energy concerned futures and EUA indicate the physical relationship between carbon emission and energy production process. Additionally, the cross-correlations between financial futures and EUA indicate that the speculation behavior may become an important factor that can affect the price of EUA. Finally we modeled the long-range volatility time series of EUA with a particular version of the GARCH process, and the result also suggests long-range volatility autocorrelations.

  15. Impacts of alternative allowance allocation methods under a cap-and-trade program in power sector

    International Nuclear Information System (INIS)

    Liu Beibei; He Pan; Zhang Bing; Bi Jun

    2012-01-01

    Emission trading is considered to be a cost-effective environmental economic instrument for pollution control. However, the policy design of an emission trading program has a decisive impact on its performance. Allowance allocation is one of the most important policy design issues in emission trading, not only for equity but also for policy performance. In this research, an artificial market for sulfur dioxide (SO 2 ) emission trading was constructed by applying an agent-based model. The performance of the Jiangsu SO 2 emission trading market was examined under different allowance allocation methods and transaction costs. The results showed that the market efficiency of emission trading would be affected by the allocation methods when the transaction costs are positive. The auction allowance allocation method was more efficient and had the lowest total emission control costs than the other three allocation methods examined. However, the use of this method will require that power plants pay for all of their allowance, and doing so will increase the production costs of power plants. On the other hand, output-based allowance allocation is the second best method. - Highlights: ► The impact of allowance allocation methods is examined for a cap-and-trade program. ► The market efficiency would be distinct when the transaction costs are positive. ► The auction method would have lowest total emission control costs.

  16. ACCOUNTING FOR GREENHOUSE GASES EMISSIONS ALLOWANCES IN ROMANIA

    Directory of Open Access Journals (Sweden)

    Marius Deac

    2013-02-01

    Full Text Available The present paper tries to analyze the accounting challenges that the implementation of EU Emissions Trading Scheme has risen. On 2 December 2004, IASB has issued an interpretation regarding the accounting of the GHG emissions allowances (IFRIC 3 „Emission Rights”. This interpretation should have been effective for annual periods beginning after 1 March 2005, the first year of the EU Emission Trading Scheme implementation. Less than a year after it was issued, IFRIC has withdrawn IFRIC 3. In December 2007, IASB has started a new project in order to provide guidance on accounting for carbon allowances called Emissions Trading Schemes Project. In the absence of an accounting standard regarding the accounting of these emissions allowances a diversity of accounting practices have been identified. Nowadays, there are three main accounting practices for the recognition of the emissions allowances and the GHG emissions liabilities: IFRIC 3 approach, the government grants approach and the net liability or off balance sheet approach. The accounting treatment of greenhouse gas emissions allowances by Romanian companies resembles the net liability or off balance sheet approach. Finance Ministry Order no. 1118/2012 states that GHG emission certificates should be recognized as fixed assets (if the entity is expecting a profit in the long term or in the category of short term investments (if the entity is expecting a profit in the short term. The accounting of the greenhouse gas emissions allowances described above is applicable mainly to traders of such certificates and not for the installations in the scope of the EU ETS directive, which should recognize GHG emissions off balance sheet, at their nominal value (nil if received for free. The shortfall or excess of allowances will be recognized in the profit or loss as they are bought or sold by the entity (the accounting treatment imposed by Finance Ministry Order no. 3055/2009.

  17. Pollution added credit trading (PACT). New dimensions in emissions trading

    International Nuclear Information System (INIS)

    Schaltegger, Stefan; Thomas, Tom

    1996-01-01

    To date, sources of hazardous, toxic, or otherwise harmful emissions have been regulated on a pollutant by pollutant basis. Environmental policies, even the more advanced 'incentive-based' programs, have focused on individual substances rather than on the overall environmental problem to which the substances contribute. This has produced results that are less economically efficient and ecologically effective than is desirable. A more comprehensive approach combines the principles of emission reduction credit trading with advances made recently in the field of environmental impact assessment, to yield an advanced form of inter-pollutant trading, which we refer to as pollution added credit trading (PACT). PACT incorporates a method for estimating the total environmental harm generated (pollution added) by a facility emitting a variety of pollutants. Weightings that reflect relative harm are used to calculate total pollution added. Each facility covered by PACT would receive annual allowances for total pollution added that they could discharge to the environment. As with existing emissions trading programs, surplus allowances could be sold and shortfalls would be covered by purchasing other facilities' surplus allowances. PACT is more efficient than single-pollutant emissions trading in that it captures differences in marginal reduction costs that exist between pollutants as well as between facilities. It is more ecologically effective because it focuses on the overall environmental problem, rather than on the individual pollutants that contribute to the problem

  18. Hitting emissions targets with (statistical) confidence in multi-instrument Emissions Trading Schemes

    International Nuclear Information System (INIS)

    Shipworth, David

    2003-12-01

    A means of assessing, monitoring and controlling aggregate emissions from multi-instrument Emissions Trading Schemes is proposed. The approach allows contributions from different instruments with different forms of emissions targets to be integrated. Where Emissions Trading Schemes are helping to meet specific national targets, the approach allows the entry requirements of new participants to be calculated and set at a level that will achieve these targets. The approach is multi-levelled, and may be extended downwards to support pooling of participants within instruments, or upwards to embed Emissions Trading Schemes within a wider suite of policies and measures with hard and soft targets. Aggregate emissions from each instrument are treated stochastically. Emissions from the scheme as a whole are then the joint probability distribution formed by integrating the emissions from its instruments. Because a Bayesian approach is adopted, qualitative and semi-qualitative data from expert opinion can be used where quantitative data is not currently available, or is incomplete. This approach helps government retain sufficient control over emissions trading scheme targets to allow them to meet their emissions reduction obligations, while minimising the need for retrospectively adjusting existing participants' conditions of entry. This maintains participant confidence, while providing the necessary policy levers for good governance

  19. The Political Economy of International Emissions Trading Scheme Choice

    DEFF Research Database (Denmark)

    Boom, Jan-Tjeerd; Svendsen, Jan Tinggard

    2000-01-01

    The Kyoto Protocol allows emission trade between the Annex B countries. We consider three schemes of emissions trading: government trading, permit trading and credit trading. The schemes are compared in a public choice setting focusing on group size and rent-seeking from interest groups. We find ...

  20. A Study of the Determinants of Emissions Unit Allowance Price in the European Union Emissions Trading Scheme

    Directory of Open Access Journals (Sweden)

    Alina Maydybura

    2011-12-01

    Full Text Available In 2005 the European Union (EU began the first phase of the largest and most ambitious emissions trading system (EU ETS ever attempted, which then applied to all members of the EU. In its second phase whichbegan in 2008 the EU ETS now applies to all 27 members of the EU together with Norway, Iceland and Lichtenstein, the members of the European Economic Area (EEA which are not members of the Union. Inthe first phase of the EU ETS permits to emit carbon into the atmosphere known as European Union Allowances (EUA were traded in a market where the price rose to €30 and eventually fell to well below 10 Euro cents as the imperfections of the market became obvious. In the second phase which began in 2008 the price has fluctuated between €30 and €8. EUA are traded in a manner which is similar to the trading of financial instruments and a range of derivatives has developed with the total value of the market now above €120b, a growing market dominated by a few large players.This paper reports some results of an empirical investigation into the factors which appear to drive the carbon price and the key determinants of the price of an EUA. Over the last decade a number of environmental products have been developed alongside the EUA, including Certified Emissions Reductions (CERs, Renewable Energy Certificates and White Certificates (energy efficiency credits and markets have developed for a range of these environmental products. A better understanding of the determinants of these markets willhelp regulators manage these new markets and this paper aims to enhance our knowledge of the market.

  1. Carbon allowance auction design of China's emissions trading scheme: A multi-agent-based approach

    International Nuclear Information System (INIS)

    Tang, Ling; Wu, Jiaqian; Yu, Lean; Bao, Qin

    2017-01-01

    In this paper, a multi-agent-based ETS simulation model is proposed for carbon allowance auction design in China. In the proposed model, two main agents, i.e., the government (the ETS implementer) and the firms in different sectors (the ETS targets), are considered. Under the ETS policy, all agents make various decisions individually according to their own goals, and interact with each other through three main markets: the commodity market, the primary carbon auction market and the secondary carbon trading market. Different popular auction designs are introduced into the ETS formulation to offer helpful insights into China's ETS design. (1) Generally, the ETS would lead to positive effects on China's carbon mitigation and energy structure improvement, but a negative impact on economy. (2) As for auction forms, the uniform-price design is relatively moderate, while the discriminative-price design is quite aggressive in both economic damage and emissions reduction. (3) As for carbon price, the uniform-price auction might generate a slightly higher market clearing price than the discriminative-price auction, and the prices under two auction rules fluctuate about RMB 40 per metric ton. (4) As for carbon cap, the total allowances in the carbon auction market should be carefully set to well balance economic growth and mitigation effect. - Highlights: • A multi-agent-based model is proposed for China's emissions trading scheme (ETS). • Two main economic agents are included: government and firms in different sectors. • Auction-based allocation for initial carbon allowances is especially investigated. • Economic and environmental impacts of different auction designs are analyzed. • Results confirm the validity of the model and give helpful insights into ETS design.

  2. New Commitment Options: Compatibility with Emissions Trading

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2006-07-01

    This paper considers different options for quantitative greenhouse gas emission commitments from the standpoint of their technical compatibility with emissions trading. These are dynamic targets, binding targets with price caps, non-binding targets, sector-wide targets/mechanisms, action targets, allowances and endowments, and long-term permits. This paper considers these options from the standpoint of their compatibility with emissions trading.

  3. Ontario emissions trading code : emission reduction credit creation, recording and transfer rules, rules for renewable energy projects and conservation projects, and rules for the operation of the Ontario Emissions Trading Registry

    International Nuclear Information System (INIS)

    2001-12-01

    Emissions trading has been an integral part of Ontario's air quality strategy since December 31, 2001. Ontario has adopted the 'cap, credit and trade' type of emissions trading system, a hybrid that takes the best features of pure 'cap-and-trade' and 'baseline-and-credit' type systems. It covers nitric oxide and sulphur dioxide. The Ontario Emissions Trading Code supplements Ontario Regulation 397/01 and sets out rules for renewable energy projects and conservation projects for which applications for emission allowances can be made. This Code describes the rules for the creation and transfer of emission reduction credits (ERCs). It also explains the rules for the operation of the registry that has been established to provide information to the public about the emissions trading program and records decisions about credit creation and credit and allowance retirement. 3 tabs

  4. International emissions trading

    DEFF Research Database (Denmark)

    Boom, Jan Tjeerd

    This thesis discusses the design and political acceptability of international emissions trading. It is shown that there are several designs options for emissions trading at the national level that have a different impact on output and thereby related factors such as employment and consumer prices....... The differences in impact of the design make that governments may prefer different designs of emissions trading in different situations. The thesis furthermore establishes that international emissions trading may lead to higher overall emissions, which may make it a less attractive instrument....

  5. From climate change to emissions trading : a briefing

    International Nuclear Information System (INIS)

    Marcu, A.

    2002-01-01

    Global warming is caused by the presence of greenhouse gases (GHGs) in the earth's atmosphere. These gases include, carbon dioxide, nitrous oxides, sulphur dioxide and methane. GHGs trap heat between the earth's atmosphere and the earth's surface to cause an overall warming trend of the Earth. The United Nations Framework Convention on Climate Change was established to address the issue of climate change and to determine the anthropogenic impact on climate change. Evidence from ice cores suggest that global warming has occurred in the past. The current state of global warming was examined by comparing the climate of today with that of the past. It was determined that the current global warming trend surpasses that of any ever observed in the past. The Kyoto Protocol was adopted in 1997 as a policy set to address the need for the world to reduce GHG emissions into the atmosphere. The Kyoto Protocol puts forth 3 sets of mechanisms to help businesses reduce GHG emissions. Emissions trading is one of them: it is a financial flexibility mechanism that allows businesses that have emitted more than their allowed share of GHGs to buy allowances from business that have emitted fewer GHGs than they were allowed. Emissions trading does not create reductions, however, it identifies the most economical solution to reduce GHGs. TransAlta, Ontario Power Generation and Suncor have conducted a few transactions to see how the market will work. There will be a global register to keep track of all assigned allowances. The paper described government action in addressing the climate change issue with reference to actions in the United Kingdom, Netherlands, Denmark and Switzerland. Canada has initiated the Greenhouse Gas Emission Reduction Trading Pilot (GERT) to test the effectiveness of emission reduction trading for GHGs in the Canadian context. GERT is a partnership between the federal government, some provinces, industry, labour and environmental groups. Ontario has established a

  6. Impediments to markets for SO2 emission allowances

    International Nuclear Information System (INIS)

    Walsh, M.; Ramesh, V.C.; Ghosh, K.

    1996-01-01

    The Clean Air Act (CAA) of 1990 imposed tighter limits on allowed emissions from electric utilities. The CAA also introduced an innovative SO 2 market mechanism to help lower the cost of compliance. The annual Environmental Protection Agency (EPA) auctions of emission allowances intended to help usher in the market mechanisms for trading allowances. In that respect, the results have been mixed. A full fledged market for emission allowances has been slow to emerge. Starting with a detailed study of the EPA auctions to date, this paper analyzes and discusses some of the reasons for this slow development

  7. Study of atmospheric emission trading programs in the United States

    International Nuclear Information System (INIS)

    1991-01-01

    A detailed review and evaluation was conducted of federal and state atmospheric emission trading programs in the USA to identify the factors critical to a successful program. A preliminary assessment was also made of the feasibility of such a program for NOx and volatile organic compounds (VOC) in the lower Fraser Valley in British Columbia. To date, experience in the USA with atmospheric emissions trading has primarily involved trades of emission reduction credits pursuant to the 1977 Clean Air Act amendments. Most trades occur under netting provisions which allow expansion of an existing plant without triggering the stringent new-source review process. Six case studies of emissions trading are described from jurisdictions in California, New Jersey, and Kentucky and from the national SO 2 allowance trading program. Estimates of cost savings achieved by emissions trading are provided, and factors critical to a successful program are summarized. These factors include clearly defined goals, participation proportional to problem contribution, an emissions inventory of satisfactory quality, a comprehensive permit system, a credible enforcement threat, efficient and predictable administration, location of the program in an economic growth area, and support by those affected by the program. In the Fraser Valley, it is concluded that either an emissions reduction credit or an allowance trading system is feasible for both NOx and VOC, and recommendations are given for implementation of such a program based on the factors determined above. 1 fig., 8 tabs

  8. Emissions trading in the Netherlands

    International Nuclear Information System (INIS)

    Zapfel, P.

    2002-01-01

    In the article 'Emissions trading in the Netherlands. The optimal route towards an international scheme?' (issue 1, 2002) Mulder asks the question to what extent a Dutch national CO2 trading scheme is a worthwhile effort toward an international trading scheme (i.e. is it a first step toward a European-wide emissions trading scheme) when presenting the proposal of the Dutch Commission on CO2 trade and related economic analysis. His conclusion, underlined by modeling results, is that a national scheme along the lines proposed by the Dutch Commission is an expensive policy instrument due to the high transaction costs. The first-best option according to Mulder is to impose CO2-emissions trading with an absolute ceiling on an international level. In the meantime, he states, improving the design of the energy tax system may be an efficient alternative. In this comment I would like to address two issues. First, does the approach proposed by the Dutch Commission make sense from a European perspective towards an EU-wide cap and trade allowance scheme as proposed by the European Commission in October 2001? and Second, what might this Dutch model and philosophy, scaled up to the EU level, look like?

  9. Stochastic Differential Equation Models for the Price of European CO2 Emissions Allowances

    Directory of Open Access Journals (Sweden)

    Wugan Cai

    2017-02-01

    Full Text Available Understanding the stochastic nature of emissions allowances is crucial for risk management in emissions trading markets. In this study, we discuss the emissions allowances spot price within the European Union Emissions Trading Scheme: Powernext and European Climate Exchange. To compare the fitness of five stochastic differential equations (SDEs to the European Union allowances spot price, we apply regression theory to obtain the point and interval estimations for the parameters of the SDEs. An empirical evaluation demonstrates that the mean reverting square root process (MRSRP has the best fitness of five SDEs to forecast the spot price. To reduce the degree of smog, we develop a new trading scheme in which firms have to hand many more allowances to the government when they emit one unit of air pollution on heavy pollution days, versus one allowance on clean days. Thus, we set up the SDE MRSRP model with Markovian switching to analyse the evolution of the spot price in such a scheme. The analysis shows that the allowances spot price will not jump too much in the new scheme. The findings of this study could contribute to developing a new type of emissions trading.

  10. [Emissions trading potential : achieving emission reductions in a cost-effective manner

    International Nuclear Information System (INIS)

    Fay, K.

    1998-01-01

    The issue of emissions trading as a viable tool to reduce greenhouse gas emissions by developed countries was discussed. The essence of this author's argument was that emissions trading alone will not solve the climate change problem and that the details of the program are hazy at best. In order to have any hope of meeting the emission reductions, it is essential to begin working out the details now, and to coordinate them with the Clean Development Mechanism (CDM) and Joint Implementation (JI) plan since all three of these flexibility mechanisms will be working in and among themselves, therefore they need to be consistent. Work on a general set of draft principles by the International Climate Change Partnership (ICCP), a coalition headquartered in Washington, DC, was summarized. Essentially, ICCP favors voluntary programs, incentives for participation, no quantitative limits on trading, no limits on sources and sinks. ICCP believes that trading should be allowed at the company level, and liability should not devolve on the buyer alone, rather, it should be negotiated between buyers and sellers. Credits for early action should also be tradable and most of all, the trading program should be simple to allow active participation by industry, and be free of bureaucratic impediments

  11. Analyzing electric utility NO{sub x} emission allowance trading strategies

    Energy Technology Data Exchange (ETDEWEB)

    Selker, F.

    2005-04-01

    This article presented a computer model designed to help power producers negotiate the nitrous oxide (NO{sub x}) emission allowance (EA) market. Created in 1999, the EA market poses a serious constraint to utilities and has the potential to substantially increase total power productions costs and to force plant shutdowns if emissions exceed limits. The market was created in response to the 1990 Clean Air Act Amendments, with the goal of effectively reducing the cost of summer ozone levels. Over 450 sources in the Northeast regions receive an allocation of NO{sub x} allowances to cover their NO{sub x} emissions during the May to September period. Various uncertainties created by the market were examined, including late summer heat waves and nuclear outages, both of which could boost emissions during times when offsets are difficult to initiate. Weather, planning and plant outages were also discussed. Supply shortages were considered along with issues concerning the model's ability to assess options and uncertainties. The feasibility of the emissions allowance acting as a viable buffer was also evaluated. It was noted that the net cost of buying and selling allowances during the NO{sub x} season varied with inventory levels. A hypothetical analysis of a NO{sub x} inventory was presented. It was suggested that purchasing options to buy allowances offered another hedge against NO{sub x} EA shortages and noncompliance. It was concluded that the model allowed users to explore the cost and risk tradeoffs of various combinations. 5 figs.

  12. 75 FR 69884 - Approval and Promulgation of Implementation Plans; Texas; Emissions Banking and Trading of...

    Science.gov (United States)

    2010-11-16

    ... Promulgation of Implementation Plans; Texas; Emissions Banking and Trading of Allowances Program AGENCY... amend the Emissions Banking and Trading of Allowances (EBTA) Program. The EBTA Program establishes a cap... Emissions Banking and Trading of Allowances Program? IV. What is EPA's evaluation of the Emissions Banking...

  13. Industry protests new emissions trading regime

    International Nuclear Information System (INIS)

    Berends, J.; Schyns, V.

    2008-01-01

    The new emissions trading proposals presented by the European Commission on January 23rd, 2008, threaten to seriously hamper the competitiveness of European industry in the global market, according to industry organizations. They demand radical changes in the way Brussels allocates emission allowances. It is stated that auctioning of allowances, as the Commission proposes, will drive industry and employment out of Europe

  14. The future(s) of emission allowances

    International Nuclear Information System (INIS)

    Rosenzweig, K.M.; Villarreal, J.A.

    1993-01-01

    The Clean Air Act Amendments of 1990 (CAAA) established a sulfur dioxide emission allowance system to be implemented by the US Environmental Protection Agency (EPA). Under the two-phase implementation of the program, electric utilities responsible for approximately 70 percent of SO 2 emissions in the United States will be issued emission allowances, each representing authorization to emit one ton of sulfur dioxide during a specified calendar year or a later year. Allowances will be issued to utilities with electric-generating units affected by the CAAA limits, as well as to certain entities which may choose to opt-in to the program. Each utility or other emission source must hold a number of allowances at least equal to its total SO 2 emissions during any given year. Unused allowances may be sold, traded, or held in inventory for use against SO 2 emissions in future years. Anyone can buy and hold allowances, including affected utilities, non-utility companies, SO 2 allowances brokers and dealers, environmental groups, and individuals. During Phase I of the program, allowances equivalent to approximately 6.4 million tons of SO 2 emissions will be allocated annually to a group of 110 large, high-SO 2 -emitting power plants. In Phase II, virtually all power-generating utilities (representing approximately 99.4 percent of total US utility emissions) will be subject to the program. The number of allowances issued will increase to approximately 8.9 million a year, with certain special allocations raising the actual number issued to 9.48 million between the years 2000 to 2009, and 8.95 million yearly thereafter. Thus, the CAAA goal of annual emissions of 9 million tons should be achieved by 2010, when virtually all US emission sources will be participating in the program

  15. Benchmark-based emission allocation in a cap-and-trade system

    International Nuclear Information System (INIS)

    Groenenberg, H.; Blok, K.

    2002-01-01

    One of the important bottlenecks for the introduction of emission trading is how allowances should be distributed among the participants in a trading scheme. Both grandfathering on the basis of historic emissions and auctioning have important drawbacks. In this paper, we propose an allowance distribution rule based on bench-marking of production processes: each company's share in the total allowance is determined by its production level and a reference emission level per product. The scheme shows some important advantages compared to other schemes

  16. Emissions trading in transition economies: the link between international and domestic policy

    International Nuclear Information System (INIS)

    Evans, M.

    2003-01-01

    International emissions trading has the potential to significantly lower carbon mitigation costs and to promote environmentally friendly investment in transition economies. The design of domestic systems to complement international emissions trading will likely play a major role in emissions trading's effectiveness. This paper examines the benefits and challenges of proposed domestic systems and the related flows of emissions trading revenue in seller nations. The overwhelming majority of emissions available for sale will come from transition economies, which is why this article considers these countries as a group. Governments in countries such as Russia and Poland are interested in the potentially significant revenue they would reap from emissions trading, and some in those governments feel the money would best be used as general revenue for the government. Others argue that emissions trading should involve the private sector and other emitters in order to provide maximum incentives to reduce emissions and generate additional emissions trading revenue (the rules for international emissions trading explicitly allow this). Still others feel that special carbon mitigation funds would allow the government to maintain control yet stimulate additional emission reductions. Each policy contains its own set of challenges: stimulating further emission reductions, credibly monitoring emissions and emission reductions, or applying adequate fiscal accounting to the money flows

  17. The trading game : emissions trading schemes offer pollution as a market commodity

    Energy Technology Data Exchange (ETDEWEB)

    Bradbury, D.

    2005-07-01

    This paper discussed the market mechanisms for emissions trading. The concept emerged in signatory countries to the Kyoto Protocol in response to their commitment to reduce greenhouse gas (GHG) emissions. Emissions trading systems allow large polluters to buy and sell pollution credits in order to meet emission reduction targets. While member states in the European Union (EU) started trading in February 2005, Canada is still developing its own proposal that will be introduced in 2008 to correspond with the first phase of the Kyoto Protocol. In contrast to the European model that places absolute limits on GHG emissions, the Canadian system is intensity-based. Heavy polluters, known as large final emitters, will have to cut emissions of the 6 GHGs covered under the Kyoto Protocol as a percentage of their total industrial output. Companies that reduce their emissions more than their defined targets can trade the surplus as credits on the open domestic market. It was argued that this allows businesses to meet their own emissions targets while failing to contribute effectively to Canada's overall Kyoto target. In addition, in order to lessen the burden to industry, Canada has imposed a $15 cap on the price of credits, which is in contrast to the European system. It was argued that businesses in Europe will be more motivated to meet their targets because of the higher value on European pollution credits. With less onus on business in Canada to reduce absolute targets, the burden of reducing GHG emissions has shifted to federal taxpayers. The paper addressed some of the factors that led to Canada's decision to use an intensity-based system. One main factor was the refusal of the United States to ratify the Kyoto Protocol and the cost disadvantage this would create for Canadian firms. However, some argue that by paying more attention to energy use, companies can reduce emissions and increase shareholder value by achieving cost savings that are greater than the

  18. Emissions trading in the real world : Ontario Power Generation's domestic and international trading activities

    International Nuclear Information System (INIS)

    Jantzi, B.

    2001-01-01

    In this presentation, the author discussed Ontario Power Generation's voluntary commitment to stabilize carbon dioxide equivalent emissions at 1990 levels. To do so, Ontario Power Generation is implementing a series of green energy initiatives, a corporate tree planting program, internal energy efficiency, and an emission reduction trading (ERT). The emphasis was placed on emission trading, where Ontario Power Generation is a leader in the field of greenhouse gas, nitrogen oxide and sulphur dioxide trading in Canada. The approach to trading adopted was explained, with the specifics provided for each of the different categories of emissions. Some examples further illustrated the process. The outlook for the future was outlined, with plans for the geological sequestration of carbon dioxide and enhanced oil recovery, low nitrogen oxide gasoline additive. The benefits of emission trading were discussed from the perspective of Ontario Power Generation and the environment, such as allowing real reductions in emissions in a cost effective manner, enhanced risk management, investments in emissions reductions. The author argued that emission reduction is the way of the future, representing the only way in which the greenhouse gas emissions reductions required to minimize global climate change will be accomplished

  19. Potential impact of (CET) carbon emissions trading on China’s power sector: A perspective from different allowance allocation options

    OpenAIRE

    Cong, Rong-Gang; Wei, Yi-Ming

    2010-01-01

    In Copenhagen climate conference China government promised that China would cut down carbon intensity 40e45% from 2005 by 2020. CET (carbon emissions trading) is an effective tool to reduce emissions. But because CET is not fully implemented in China up to now, how to design it and its potential impact are unknown to us. This paper studies the potential impact of introduction of CET on China’s power sector and discusses the impact of different allocation options of allowances. Agent-based mod...

  20. Emissions Trading - An Internet site on the EU Emissions Trading Scheme (ETS); Utslappshandel - En Internetsida om handel med utslaeppsraetter inom EU

    Energy Technology Data Exchange (ETDEWEB)

    2009-07-01

    Utslappshandel.se is a one-stop shop for overall information about the EU Emissions Trading Scheme (ETS) as applied in Sweden (the site is available in Swedish and English). It also offers a gateway to the Swedish Emissions Trading Registry (SUS), where companies report their transactions on an ongoing basis and surrender emission allowances once a year. The Swedish Energy Agency is in charge of the Swedish registry. The Swedish Environmental Protection Agency decides on the allocation of emission allowances and is responsible for following up companies' annual reporting on their CO{sub 2} emissions. The EU ETS is expected to cover installations equivalent to approximately 50 per cent of total CO{sub 2} emissions in the EU. In Sweden, it is expected to cover only 40 per cent of emissions, mainly owing to the very low level of fossil electricity production

  1. Judicial aspects of emission trade. Emission trade in the European Union

    International Nuclear Information System (INIS)

    Van Beuge, M.J.J.

    2004-01-01

    Emission trade will start in Europe in 2005. In a series of articles an overview will be given of several juridical aspects with respect to the international and national trade of emission. In part 1 attention was paid to the international judicial basis for the present climate policy. In this article an overview is given of developments with regard to emission trade in the European Union [nl

  2. Emission allowances -- Long-term price trend

    International Nuclear Information System (INIS)

    Lennox, F.H.

    1994-01-01

    Estimated trends in emission allowance (EA) values have been of interest to all those affected by the Clean Air Act Amendments of 1990 since it became law in 1990. The authors published estimates of the values of EAs in December 1991, and revised their estimate in November 1992. The summary trends of the 1992 estimate is shown here. General estimates such as these are no longer useful. Everyone directly involved in complying with the Act or in buying and selling allowances has developed their own outlook on EA values. Many recent trades have been publicized. The prices from the first auction are also well known. Therefore this article is concerned only with what might happening the long-run. Once Phase 2 compliance is essentially complete and emissions roughly match Emission Allowance allocations of some 9.8 million tons annually, what pressures will there be on prices? What will be the direction of values after Phase 2 is in balance?

  3. BP's emissions trading system

    International Nuclear Information System (INIS)

    Victor, David G.; House, Joshua C.

    2006-01-01

    Between 1998 and 2001, BP reduced its emissions of greenhouse gases by more than 10%. BP's success in cutting emissions is often equated with its use of an apparently market-based emissions trading program. However no independent study has ever examined the rules and operation of BP's system and the incentives acting on managers to reduce emissions. We use interviews with key managers and with traders in several critical business units to explore the bound of BP's success with emissions trading. No money actually changed hands when permits were traded, and the main effect of the program was to create awareness of money-saving emission controls rather than strong price incentives. We show that the trading system did not operate like a 'textbook' cap and trade scheme. Rather, the BP system operated much like a 'safety valve' trading system, where managers let the market function until the cost of doing so surpassed what the company was willing to tolerate

  4. Study of atmospheric emission trading programs in the United States. Final report

    International Nuclear Information System (INIS)

    1991-01-01

    A detailed review and evaluation was conducted of federal and state atmospheric emission trading programs in the USA to identify the factors critical to a successful program. A preliminary assessment was also made of the feasibility of such a program for NOx and volatile organic compounds (VOC) in the lower Fraser Valley in British Columbia. To date, experience in the USA with atmospheric emissions trading has primarily involved trades of emission reduction credits pursuant to the 1977 Clean Air Act amendments. Most trades occur under netting provisions which allow expansion of an existing plant without triggering the stringent new-source review process. Six case studies of emissions trading are described from jurisdictions in California, New Jersey, and Kentucky and from the national SO 2 allowance trading program. Estimates of cost savings achieved by emissions trading are provided, and factors critical to a successful program are summarized. These factors include clearly defined goals, participation proportional to problem contribution, an emissions inventory of satisfactory quality, a comprehensive permit system, a credible enforcement threat, efficient and predictable administration, location of the program in an economic growth area, and support by those affected by the program. In the Fraser Valley, it is concluded that either an emissions reduction credit or an allowance trading system is feasible for both NOx and VOC, and recommendations are given for implementation of such a program based on the factors determined above. 1 fig., 8 tabs

  5. Greenhouse Gas Emissions Trading for the Transport Sector

    International Nuclear Information System (INIS)

    Holmgren, Kristina; Belhaj, Mohammed; Gode, Jenny; Saernholm, Erik; Zetterberg, Lars; Aahman, Markus

    2006-12-01

    In this study we have analysed different options to apply emissions trading for greenhouse gas emissions to the transport sector. The main focus has been on the EU transport sector and the possibility to include it in the current EU ETS in the trading period beginning in 2013. The purpose was to study how different alternatives will affect different actors. Focus has been on three sub-sectors; road transport, aviation and shipping. The railway sector has only been treated on a general level. The study includes the following three parts: 1. An economic analysis of the consequences of greenhouse gas emissions trading for the transport sector including an analysis of how the total cost for reaching an emission target will be affected by an integrated emissions trading system for the transport sector and the industry (currently included sectors) compared to separate systems for the sectors, 2. An analysis of design possibilities for the different sub-sectors. Discussion of positive and negative aspects with different choices of design parameters, such as trading entity, covered greenhouse gases, allocation of emission allowances and monitoring systems, 3. Examination of the acceptance among different actors for different options of using greenhouse gas emissions trading in the transport sector. When setting up an emissions trading scheme there are a number of design parameters that have to be analysed in order to find an appropriate system, with limited administrative and transaction costs and as small distortions as possible to competitiveness

  6. Emissions Trading Resources

    Science.gov (United States)

    Learn about emissions trading programs, also known as cap and trade programs, which are market-based policy tools for protecting human health and the environment by controlling emissions from a group of sources.

  7. Act locally, trade globally. Emissions trading for climate policy

    Energy Technology Data Exchange (ETDEWEB)

    none

    2005-07-01

    Climate policy raises a number of challenges for the energy sector, the most significant being the transition from a high to a low-CO2 energy path in a few decades. Emissions trading has become the instrument of choice to help manage the cost of this transition, whether used at international or at domestic level. Act Locally, Trade Globally, offers an overview of existing trading systems, their mechanisms, and looks into the future of the instrument for limiting greenhouse gas emissions. Are current markets likely to be as efficient as the theory predicts? What is, if any, the role of governments in these markets? Can domestic emissions trading systems be broadened to activities other than large stationary energy uses? Can international emissions trading accommodate potentially diverse types of emissions targets and widely different energy realities across countries? Are there hurdles to linking emissions trading systems based on various design features? Can emissions trading carry the entire burden of climate policy, or will other policy instruments remain necessary? In answering these questions, Act Locally, Trade Globally seeks to provide a complete picture of the future role of emissions trading in climate policy and the energy sector.

  8. The construction of Shenzhen's carbon emission trading scheme

    International Nuclear Information System (INIS)

    Jiang, Jing Jing; Ye, Bin; Ma, Xiao Ming

    2014-01-01

    The Shenzhen ETS is the first urban-level “cap-and-trade” carbon emissions trading scheme to operate in China. This paper gives an overview of the economic and emissions situation in Shenzhen and focuses on the development of the Shenzhen ETS regulatory framework. It is devised as an ETS with an intensity-based cap, output-based allocation and a market for trading of allowances. The design of the Shenzhen ETS attaches great importance to coordinate the dynamic relationships between economic growth, industrial transition and emissions control. The cap and its allocation are determined by carbon intensity reduction targets and economic output, with an aim to slow down emissions growth while mitigating shocks from economic fluctuation and industrial adjustment to market stability. The Shenzhen ETS features extensive coverage consisting of three types of regulated entities and four categories of covered emissions, in order to control carbon emissions by both improving energy efficiency and restraining growing energy demand. A competitive game theory method is created for allocation of free allowances to manufacturing enterprises. Mechanisms for carbon offsets and market stabilization are developed to promote active and orderly trading in the carbon market. Moreover, several challenges and their policy choices are detailed for the development of the Shenzhen ETS. - Highlights: • The Shenzhen ETS is the first urban-level “cap-and-trade” carbon emission trading scheme operated in China. • This paper focuses on the construction of Shenzhen carbon emission trading scheme. It is devised as the intensity-based cap, output-based allocation and allowance trade carbon market. • It has some signatures in the general principles, coverage and scope, cap and allocation and other mechanisms. • Several challenges and their policy choices are detailed for the development of Shenzhen ETS

  9. Influence of the Emissions Trading Scheme on generation scheduling

    International Nuclear Information System (INIS)

    Kockar, Ivana; McDonald, James R.; Conejo, Antonio J.

    2009-01-01

    The paper investigates the effects of emissions constraints and Emissions Trading Scheme (ETS) on the generation scheduling outcome. ETS is a cap-and-trade market mechanism that has been introduced in European Union in order to facilitate CO 2 emissions management. This scheme gives generators certain amount of CO 2 allowances which they can use to cover emissions produced during energy generation. In a current setting, most of the allowances are given for free. However, under ETS generators also have an opportunity to buy and sell CO 2 allowances on the market. Since generation power outputs are bounded by the amount of CO 2 emissions that they are allowed to produce over time, it is becoming increasingly important for generating units to manage their allocations in the most profitable way and decide when and how much of permissions to spent to produce electricity. The method proposed here allows for modeling of this new limitation by including costs of buying and selling of CO 2 allowance in the generation scheduling procedure. It also introduces additional emissions constraints in the problem formulation. Although CO 2 permissions and energy are traded in separate markets, the proposed formulation permits analysis on how emission caps and emission market prices can influence market outcome. The method is illustrated on a 5-unit system. Given examples compare (i) a base-case when all generators have made a decision to use portions of their total free allocations that do not cause any shortfall during the investigated time period; (ii) two cases when the least expensive generators' decisions on the amount of free allowances they are willing to use during the considered period are insufficient. In all cases generators also submit prices at which they expect to be able to ''top-up'' or sell allowances on the market, however, only in the second and third case the ''buying'' option becomes active and affects generation scheduling and total costs. In addition, the

  10. The Political Economy of International Emission Trading Scheme Choice: Empirical Evidence

    DEFF Research Database (Denmark)

    Boom, J.T.; Svendsen, Gert Tinggaard

    2000-01-01

    The Kyoto Protocol allows emissions trading. It does however not specify how this is to take place and the discussion on the design of an emissions trading scheme is ongoing. In this paper, we give some empirical evidence on the preference of industry and environmental organizations for internati...... for international emissions trading scheme. Since they may have an influence on decision makers, their opinion is important. Our conclusion is that both industry and environmental organizations prefer credit trading, although for widely different reasons....

  11. Climate, energy and emissions trading

    International Nuclear Information System (INIS)

    Baron, R.; Philibert, C.

    2007-01-01

    The authors question the 4 main concerns that have arisen since the implementation of emission trade markets 3 years ago. First, the allowance policy was not accurate enough and has led to a surplus offer of CO 2 allowances. Secondly, the impact on electricity prices of carbon emission costs was all the higher as it happened at the moment of the deregulation of electricity markets. Thirdly, the CO 2 allowances whose price will near 14 euros a ton for the 2008-2012 period are accused of hindering the competitiveness of the European industrial sector. Fourth, the present allowance system that gives to new comers free CO 2 allowances is not very conducive to the adoption by these new comers of technologies that are less CO 2 emitting. Some ways of improvement are given. (A.C.)

  12. Emission trading in Slovakia is not bound to Kyoto

    International Nuclear Information System (INIS)

    Slovak, K.; Zackova, K.

    2004-01-01

    After Pentagon published its report problems related to changes in climate became an important discussion topic again. The report indicates that future temperature increase could have fatal impacts like flooding of Netherlands. Representatives of Slovak National Climate Program do not completely share this view. They consider it to be the worst scenario - catastrophic scenario. And they are also positive that the emissions of greenhouse gases that are the main reason for these changes of climate will decrease. EU is currently working on Directives that will support one of the possible solutions - emission trading and will make this trade independent from ratification of the Kyoto protocol. The basic principle is simple - a country with production of the greenhouse gases below the legally set level or below the level set out by international agreement on climatic changes will have some spare emission quotas that can be traded i.e. sold to a country that produces more gases then allowed. And based on such an agreement signed between a Slovak and Japanese company, Japan will be allowed to produce more greenhouse gases if it can prove that there is an area in the world where the production is below the limit. But, at the same time, it will have to pay for this over-production. Starting next year over 12-thousand companies will be allowed to participate in this business. At the moment an act on emission trading is being prepared in Slovakia. It should have been completed by end of January but the approval process is being delayed. Similar acts are under preparation also in other countries and not even the EU member states have passed them yet. The National Allocation Plan in Slovakia should distribute the emission quotas to about 200 companies. Many European politicians consider the emission trade an effective economic tool provided it will be used as motivation for decrease of greenhouse gas production. And so all companies participating in this project will handle in

  13. Interactions between energy efficiency and emission trading under the 1990 Clean Air Act Amendments

    International Nuclear Information System (INIS)

    Hillsman, E.L.; Alvic, D.R.

    1994-08-01

    The 1990 Clean Air Act Amendments affect electric utilities in numerous ways. The feature that probably has received the greatest attention is the provision to let utilities trade emissions of sulfur dioxide (SO 2 ), while at the same time requiring them to reduce S0 2 emissions in 2000 by an aggregate 43%. The emission trading system was welcomed by many as a way of reducing the cost of reducing emissions, by providing greater flexibility than past approaches. This report examines some of the potential interactions between trading emissions and increasing end-use energy efficiency. The analysis focuses on emission trading in the second phase of the trading program, which begins in 2000. The aggregate effects, calculated by an emission compliance and trading model, turn out to be rather small. Aggressive improvement of end-use efficiency by all utilities might reduce allowance prices by $22/ton (1990 dollars), which is small compared to the reduction that has occurred in the estimates of future allowance prices and when compared to the roughly $400/ton price we estimate as a base case. However, the changes in the allowance market that result are large enough to affect some compliance decisions. If utilities in only a few states improve end-use efficiency aggressively, their actions may not have a large effect on the price of an allowance, but they could alter the demand for allowances and thereby the compliance decisions of utilities in other states. The analysis shows how improving electricity end-use efficiency in some states can cause smaller emission reductions in other states, relative to what would have happened without the improvements. Such a result, while not surprising given the theory behind the emission trading system, is upsetting to people who view emissions, environmental protection, and energy efficiency in moral rather than strictly economic terms

  14. Liability rules for international trading of greenhouse gas emissions quotas

    DEFF Research Database (Denmark)

    Haites, E.; Missfeldt, F.

    2001-01-01

    To reduce the costs of mitigating greenhouse gas emissions in accordance with the Kyoto protocol, international trades of emissions quotas are allowed. The revenue from the sale of quotas may exceed the sanctions for non-compliance if these penalties are weak or poorly enforced. Under...... these circumstances emissions trading enables a country to benefit financially through non-compliance. To counter non-compliance due to trading a range of liability proposals have been suggested. Using a simple global model, we analyze the economic and environmental performance of these proposals for the first...

  15. Emission Trading under the Kyoto Protocol

    Energy Technology Data Exchange (ETDEWEB)

    Holtsmark, Bjart; Hagem, Cathrine

    1998-12-01

    This report discusses the potential gains from emission trading and raises some crucial questions. It shows that the total costs of the Kyoto Protocol could be reduced by about 95% through emission trading. Emission trading is an option also in the domestic arenas. The governments of the Annex B countries may allocate emission quotas to local enterprises as emission permits. Thus new markets for greenhouse gas emission quotas may emerge, domestically and internationally. It is emphasized that emission trading at the national and international levels must be discussed separately. The Nordic governments, for example, will find several good reasons for supporting emission trading at the international level if not necessarily domestically. The Nordic countries have already implemented domestic taxes on CO{sub 2} emissions and this tax policy could be sustained while these governments support and take part in emission trading at the international level.The report also considers a possible side effect of emission trading: free emission trading among Annex B countries could reduce the total abatement compared to a non-tradable policy as a consequence of the fact that some of the countries that are in transition to a market economy may be given emission limitations above their business-as-usual emissions. 40 refs., 7 figs., 4 tabs.

  16. EU emission trading scheme and the effect on the price of electricity

    International Nuclear Information System (INIS)

    2004-01-01

    The Electricity Market Working Group and the Climate Change Policy Working Group of the Nordic Council of Ministers, has commissioned ECON Analysis to prepare this report. The report analyses the demand and supply of GHG emission allowances and the price of emission allowances for the period 2005-2007 and 2008-2012 and the effect on the electricity price in the Nordic electricity market. The demand for emissions allowances has then been estimated for different scenarios, with different assumption on burden sharing between sectors and international participation and the supply of emission allowances is determined by the marginal abatement costs. Based on available information on abatement costs the supply of allowances is then estimated. The market balance between the demand and supply for allowances then determines the price of emission allowances. The effect on the electricity price is simulated with ECON's model for the Nordic power market to quantitatively estimate the effect from emissions trading on the electricity price, production, consumption, trade, etc. (BA)

  17. Great expectations. Can international emissions trading deliver an equitable climate regime?

    International Nuclear Information System (INIS)

    Baumert, Kevin A.; Perkaus, James F.; Kete, Nancy

    2003-01-01

    Climate change equity debates tend to focus on achieving a fair and global 'allocation' of emission rights among countries. Allocation proposals typically envision, if implicitly, two purposes for international emissions trading. First, trading is expected to serve as a cost-effective means of promoting compliance with emissions targets. Second, trading is posited as a means to generate financial transfers, typically from industrialized to transitioning and developing countries. This article investigates the common assumption that international emissions trading will effectively serve both of these purposes. We conclude that the two purposes might not be mutually supportive, and that efforts to use international emissions trading as a financial transfer mechanism may potentially undermine cost-effectiveness goals. International emissions trading on a global scale would create new risks in terms of both cost-effectiveness and environmental performance, some of which will be challenging to manage. In particular, uncertainties over market prices and trading eligibility, coupled with the costs of participation, may together be the Achilles heel of some allocation proposals that entail large financial transfers from industrialized to developing countries. Any proposal for an 'equitable' allocation of emission allowances, we conclude, must be cognizant of the risks and costs implied by a reliance on international emissions trading. We offer some suggestions to this end

  18. Does EU emissions trading bite? An event study

    International Nuclear Information System (INIS)

    Jong, Thijs; Couwenberg, Oscar; Woerdman, Edwin

    2014-01-01

    The aim of this paper is to examine whether shareholders consider the EU Emissions Trading Scheme (EU ETS) as value-relevant for the participating firms. An analysis is conducted of the share prices changes as caused by the first publication of compliance data in April, 2006, which disclosed an over-allocation of emission allowances. Through an event study, it is shown that share prices actually increased as a result of the allowance price drop when firms have a lower carbon-intensity of production and larger allowance holdings. There was no significant value impact from firms' allowance trade activity or from the pass-through of carbon-related production costs (carbon leakage). The conclusion is that the EU ETS does ‘bite’. The main impact on the share prices of firms arises from their carbon-intensity of production. The EU ETS is thus valued as a restriction on pollution. - Highlights: • Firms are more positively valued with lower carbon-intensities of production. • Firms are more negatively valued with smaller holdings of allowances. • The stock market does not value the firms' allowance trade activity. • The stock market does not seem to value the pass-through of carbon costs in product prices

  19. To Trade or Not to Trade: Firm-Level Analysis of Emissions Trading in Santiago, Chile

    International Nuclear Information System (INIS)

    Coria, Jessica; Loefgren, Aasa; Sterner, Thomas

    2009-01-01

    Whether tradable permits are appropriate for use in transition and developing economies - given special social and cultural circumstances, such as the lack of institutions and lack of expertise with market-based policies - is much debated. We conducted interviews and surveyed a sample of firms subject to emissions trading programs in Santiago, Chile, one of the first cities outside the OECD that has implemented such trading. The information gathered allow us to study what factors affect the performance of the trading programs in practice and the challenges and advantages of applying tradable permits in less developed countries

  20. Why taxes don't distort emissions trading

    International Nuclear Information System (INIS)

    Thomas, M.T.

    1994-01-01

    Observers of the emission allowance market, noting the relatively few trades to date, fear that utilities have been deterred by the tax consequences. Their thinking runs like this: Because allocated allowances carry a zero-cost tax basis, the proceeds from sale are fully taxable and the utility receives only the after-tax value. On the other hand, if the utility banks allowances and uses them for compliance on its own plant, it realizes its entire investment. Thus, market price comparisons for emissions allowances should be adjusted to reflect this tax penalty. This argument may sounds plausible, but as a general rule it's not true

  1. Emission allowances and mitigation costs of China and India resulting from different effort-sharing approaches

    International Nuclear Information System (INIS)

    Ruijven, Bas J. van; Weitzel, Matthias; den Elzen, Michel G.J.; Hof, Andries F.; Vuuren, Detlef P. van; Peterson, Sonja; Narita, Daiju

    2012-01-01

    To meet ambitious global climate targets, mitigation effort in China and India is necessary. This paper presents an analysis of the scientific literature on how effort-sharing approaches affect emission allowances and abatement costs of China and India. We find that reductions for both China and India differ greatly in time, across- and within approaches and between concentration stabilisation targets. For China, allocated emission allowances in 2020 are substantially below baseline projections. Moreover, they may be below 2005 emission levels, particularly for low concentration targets (below 490 ppm CO 2 -eq). Effort-sharing approaches based on allocating reduction targets lead to relatively lower reductions for China than approaches that are based on allocating emission allowances. For 2050, emission allowances for China are 50–80% below 2005 levels for low concentration targets with minor differences between approaches. Still, mitigation costs of China (including emissions trading) remain mostly below global average. According to literature, Chinese emission allowances peak before 2025–2030 for low concentration targets. India’s emission allowances show high increases compared to 2005 levels. If emission trading is allowed, financial revenues from selling credits might compensate mitigation costs in most approaches, even for low concentration targets. India’s emission allowances peak around 2030–2040 for all concentration targets.

  2. Making a market for SO2 emissions trading

    International Nuclear Information System (INIS)

    Solomon, B.D.; Rose, K.

    1992-01-01

    Under the innovative, market-based approach to acid rain control included in the Clean Air Act amendments of 1990 (CAAA), sulfur dioxide emission allowances allocated to existing electric utility sources of these emissions can be used by utilities, banked for future use, or sold or traded to other users. Most power plants that burn fossil fuels will need to obtain an adequate supply of allowances from the market of EPA-sponsored auctions to cover their future emissions. This article addresses the respective roles of regulators and the private sector in facilitating a market for SO 2 emission allowances. In previous work, the authors have argued that state public utility commissions should seize the opportunity to encourage utilities to facilitate the allowance market. Yet it is the nature of new markets that many potential participants (including regulators) are risk-averse and wait for others to make the first move. Taken to the extreme, such behavior is a prescription for failure. The authors stated purpose is both to offer a perspective on how to make a market for what was previously considered an externality, as well as to stimulate debate among the various players and elicit better ideas. In fact, much more may be at stake. The success or failure of the emissions trading program could well set a benchmark for future environmental protection efforts in the US and globally

  3. Proceedings of the Emissions trading conference : effective strategies for successful emissions trading in a global market

    International Nuclear Information System (INIS)

    2001-01-01

    There is growing interest everywhere in the topic of emissions trading in order to meet the commitments made under the Kyoto Protocol. During this conference, most aspects of emissions trading were discussed, ranging from the need to establish credible emission reduction estimates to the means of achieving those goals, to the trading activities of Ontario Power Generation in the field of emissions trading both at the domestic and the international level. There were presentations that focussed on greenhouse gas policies, markets and strategic plays, and the preparation for the regulation of greenhouse gas. An emissions trading regime for Canada was examined by one of the presenters. This conference provided a useful venue for all stakeholders to discuss various strategies and ideas related to emissions trading. Speakers represented governments, the private sector and utilities, as well as the National Round Table on the Environment and the Economy. tabs., figs

  4. Emissions trading and competitiveness: pros and cons of relative and absolute schemes

    International Nuclear Information System (INIS)

    Kuik, Onno; Mulder, Machiel

    2004-01-01

    Emissions trading is a hot issue. At national as well as supranational levels, proposals for introduction of emissions trading schemes have been made. This paper assesses alternative emissions trading schemes at domestic level: (1) schemes where the total level of emissions is fixed (absolute cap-and-trade), (2) schemes where the allowable level of emissions per firm is related to some firm-specific indicator (relative cap-and-trade), and (3) mixed schemes which combine elements of the above alternatives. We present a quantitative assessment of these alternatives for climate change policy in the Netherlands. It is concluded that while relative cap-and-trade would avoid negative effects on competitiveness, it would not reduce emissions at the lowest costs. Besides, the addition of a trade system to existing relative standards does not result in additional emission reduction; it should be combined with other policy measures, such as energy taxes, in order to realise further reduction. Absolute cap-and-trade leads to efficient emissions reduction, but, implemented at the national level, its overall macroeconomic costs may be significant. The mixed scheme has as drawback that it treats firms unequal, which leads to high administrative costs. We conclude that none of the trading schemes is an advisable instrument for domestic climate policy

  5. Aspects related to 'emission trading'

    International Nuclear Information System (INIS)

    Tutuianu, Ovidiu

    1999-01-01

    The paper presents the aspects of international GHG (greenhouse gases) emission trading, such as: quality of GHG emission data, possible partners, monitoring activity, market mechanisms and difficulties. The following conclusions are drown: - debates on international trade with GHG emissions are currently in a very early stage; - actions are possible and feasible, particularly after Kyoto Conference, as versatile mechanism (besides the Joint Implementation Projects) which have in view the lowering of the global emission costs in different zones of the planet; - difficulties concerning monitoring, reporting and verification, practically preclude implementing a system of emission trading covering all the GHG, all the sources and reservoirs; - an international viable system of emission trading could initiate with a limited number of participants and consideration of only emission categories easy to be confined and surveyed; - existence of a national market and corresponding institutions for monitoring which could booster an international system development

  6. Linking CO{sub 2} emissions from international shipping to the EU emissions trading scheme

    Energy Technology Data Exchange (ETDEWEB)

    Kaageson, Per [Nature Associates, Stockholm (Sweden)

    2009-09-15

    The objective of the report is to analyse the feasibility of a cap-and-trade system for CO{sub 2} emissions from international shipping linked to the European Emission Trading Scheme (ETS). The idea presented in the paper is to tie the permission for a ship to call at a port of a participating country to the vessels participation in a scheme for emissions trading under a common cap. The ship would be liable for emissions from fuel bunkered during, say, six months prior to a call at a participating port. With this design, emissions from the return voyages of ships involved in intercontinental traffic would automatically be covered, and shipowners and operators would gain nothing by calling at ports just outside the European Union. The geographical scope would thus be global, albeit limited to ships that call at ports of the European Union (and other participating states). The fuel consumption, that the surrendered CO{sub 2} allowances would have to match, could be declared by using the existing mandatory bunker delivery notes that all ships above 400 GT need to keep according to Regulation 18 of MARPOL Annex VI. The report discusses various ways for initial allocation of allowances and concludes that the least distorting method would be to sell them on auction and recycle all or most of the revenues to the shipping sector in a way that does not interfere with the objective of the trading scheme. In the case where Maritime Emissions Trading Scheme (METS) is initially limited to the ports of the European Union, at least 6 200 million ton less CO{sub 2} would be emitted over the 23 years between 2012 and 2035 compared to a business-as-usual scenario. However, a great part of this would be reductions in land-based sources paid indirectly by the shipping sector. (orig.)

  7. Market analysis and risk management of EU emissions trading

    International Nuclear Information System (INIS)

    Ollikainen, M.; Ollikka, K.; Aatola, P.; Ahonen, H.M.; Pohjola, T.; Kumpulainen, A.; Lappalainen, E.

    2006-01-01

    The first EU emissions trading period commenced on 1 January 2005. It implies new challenges to companies included in the scheme. A central challenge is the uncertainty related to the markets. In order to manage risks and profitability companies need to be able to estimate future price developments of emission allowances. University of Helsinki is conducting a research project in cooperation with Helsinki University of Technology that will provide necessary information for analyzing emission allowance markets and create risk management competence. The objectives of the research project are 1) to develop a price estimation model for EU emission allowances and 2) to develop risk management competence related to EU emission allowances. With the price estimation model the short-term price developments of EU emission allowances can be estimated. By utilizing the model companies can reduce uncertainties related to the markets. The project will also deliver a general risk management model for emission allowances that aims at improving competitiveness of companies. (orig.)

  8. Emissions trading in the context of electricity deregulation : a case study on Ontario

    International Nuclear Information System (INIS)

    Johns, G.

    2003-01-01

    This presentation discussed the deregulation of the electric power industry in Ontario and Alberta with particular reference to emissions trading, emissions profiles for the two provinces, and current market rules. It was noted that deregulation in Ontario is the major impetus for developing an emission trading system. Alberta is also in the process of developing an emission trading system for all industry sectors. The author discussed Ontario's Bill 210 which places a 6 year cap on prices and which offers tax incentives for renewable energy sources. It was argued that Bill 210 negates new generation and inhibits participants and competition in emissions trading market. Ontario generators face competitiveness concerns with neighbouring jurisdictions. Current market rules were outlined for emission caps, allocation for nitrogen oxide and sulfur dioxide allowances, credit creation, emission trading, and credit use. 6 figs

  9. Trading sulphur emissions under the Second Sulphur Protocol

    Energy Technology Data Exchange (ETDEWEB)

    Foersund, Finn R.; Naevdal, Eric

    1997-07-01

    Emission trading is a potent policy instrument in theoretical analyses of environmental policy. However, trading in emission quotas of non-uniformly dispersed pollutants requires that the offsetting quantities vary with location of sources. Such a system is not yet in use. The Second Sulphur Protocol for Europe makes it possible to try out a system of ``exchange rates`` through a clause allowing ``joint implementation`` of emission reductions. In this report, the authors investigate some properties of a system with exogenous exchange rates within a simultaneous trade model based on cost efficiency. Incorporation of constraints on depositions in third party countries may be necessary in order to get third party country cooperation. It is demonstrated that imposition of constraints is feasible, but it is also revealed what demands such incorporation places on the design of the institutional setting. Constraints on trade should only be introduced when the concern for the environment of the various receptors fail to be captured adequately by the calibration of the exchange rates. 16 refs., 2 figs., 3 tabs.

  10. 75 FR 81484 - Approval and Promulgation of Implementation Plans; Texas; Emissions Banking and Trading of...

    Science.gov (United States)

    2010-12-28

    ... ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA-R06-OAR-2005-TX-0012; FRL-9243-1] Approval and Promulgation of Implementation Plans; Texas; Emissions Banking and Trading of Allowances Program AGENCY... State Implementation Plan (SIP) that create and amend the Emissions Banking and Trading of Allowances...

  11. European emission trading, renewable energy law and the law of governmental environmental allowances; Europaeischer Emissionshandel, Erneuerbare-Energien-Gesetz und das Recht der Umweltbeihilfen. Plaedoyer fuer einen ''more environmental approach'' im EU-Wettbewerbsrecht

    Energy Technology Data Exchange (ETDEWEB)

    Jacobs, Max

    2016-07-01

    The book on European emission trading, renewable energy law and the law of governmental environmental allowances covers the following issues: The European emission trading system and the European law on competition, the European emission trading system and competitive concerns; The European renewable energy law and the European law on competition, The European renewable energy law and competitive concerns; environmental protection the European competition policy.

  12. The Adaptation Law for emissions trading. Part 2. A level playing field for emissions trading?

    International Nuclear Information System (INIS)

    Simonetti, S.

    2010-01-01

    To supplement, clarify and simplify the regulations for emission trading, the Amendment Act emission trading II was submitted to the Dutch Lower Chamber end of 2009. This article discusses the pending bill and comments on a number of remarkable stipulations that may be important to the market parties. First a brief overview is provided of the basic principles of emission trading and the players in the CO2 market. [nl

  13. Banning banking in EU emissions trading?

    International Nuclear Information System (INIS)

    Schleich, Joachim; Ehrhart, Karl-Martin; Hoppe, Christian; Seifert, Stefan

    2006-01-01

    Admitting banking in emissions trading systems reduces overall compliance costs by allowing for inter-temporal flexibility: cost savings can be traded over time. However, unless individual EU Member States (MS) decide differently, the transfer of unused allowances from the period of 2005-2007 into the first commitment period under the Kyoto Protocol, i.e. 2008-2012, will be prohibited. In this paper, we first explore the implications of such a ban on banking when initial emission targets are lenient. This analysis is based on a simulation which was recently carried out in Germany with companies and with a student control group. The findings suggest that a EU-wide ban on banking would lead to efficiency losses in addition to those losses which arise from the lack of inter-temporal flexibility. Second, we use simple game-theoretic considerations to argue that, under reasonable assumptions, such a EU-wide ban on banking will be the equilibrium outcome. Thus, to avoid a possible prisoners' dilemma, MS should have co-ordinated their banking decisions

  14. Emissions trading comes of age as a strategic tool

    International Nuclear Information System (INIS)

    Pospisil, R.

    1996-01-01

    Trading of emissions credits has quickly evolved from a curiosity to a viable compliance strategy for electric utilities and power-generating industrial firms. A sure sign that emissions trading has matured is the entry of power marketers onto the scene; in bundling pollution allowances with their electricity offerings, they are making their product more attractive - and stealing a page from the coal companies' strategy book to boot. Although most current activity involves credits for sulfur dioxide (SO 2 ), nitrogen oxide (NO x ) trading is under way in certain areas as well, although NO x markets are local and thus slower to develop. However, utilities see economic development potential in this area; some are providing NO x credits to their industrial customers to help them comply with environmental regulations - and to retain their loyalty when deregulation affords them a choice of electricity suppliers. This paper briefly discusses the issues related to emissions trading

  15. Greenhouse gases and emissions trading

    International Nuclear Information System (INIS)

    LeBlanc, A.; Dudek, D.J.

    1993-01-01

    Global cooperation is essential in cutting greenhouse-gas emissions, say Alice LeBlanc and Daniel J. Dudek of the Environmental Defense in New York City. The first step, they continue, is agreement among nations on an overall global limit for all greenhouse gases, followed by an allocation of the global limit among nations. The agreements must contain effective reporting and monitoring systems and enforcement provisions, they add. The Framework Convention on Climate Change, signed by most nations of the world in Brazil in 1992, provides the foundation for such an agreement, LeBlanc and Dudek note. open-quotes International emissions trading is a way to lower costs and expand reduction options for the benefit of all,close quotes they contend. Under such an arrangement, an international agency would assign allowances, stated in tons of carbon dioxide. Countries would be free to buy and sell allowances, but no country could exceed, in a given year, the total allowances it holds. By emitting less than its allowed amount, a country would accumulate more allowances, which it could sell. The authors claim such a system would offer benefits to the world economy by saving billions of dollars in pollution-reduction costs while still achieving emission limits established in an international agreement

  16. Judicial aspects of emission trade. Disputes

    International Nuclear Information System (INIS)

    Bitter, J.W.

    2004-01-01

    Emission trade will start in Europe in 2005. In a series of articles an overview will be given of several juridical aspects with respect to the international and national trade of emission. In this last part attention will be paid to settlement of disputes in emissions trade [nl

  17. Linking project-based mechanisms with domestic greenhouse gas emissions trading schemes

    International Nuclear Information System (INIS)

    Bygrave, S.; Bosi, M.

    2004-01-01

    Although there are a number of possible links between emission trading and project-based mechanisms, the focus of this paper is on linking domestic GHG emission trading schemes with: (1) domestic; and, (2) international (JI and CDM) GHG reduction project activities. The objective is to examine some of the challenges in linking DETs and project-based mechanisms, as well as some possible solutions to address these challenges. The link between JI / CDM and intergovernmental international emissions trading (i.e. Article 17 of the Kyoto Protocol) is defined by the Kyoto Protocol, and therefore is not covered in this paper. The paper is written in the context of: (a) countries adhering to the Kyoto Protocol and elaborating their strategies to meet their GHG emission commitments, including through the use of the emissions trading and project-based mechanisms. For example, the European Union (EU) will be commencing a GHG Emissions Trading Scheme in January 2005, and recently, the Council of ministers and the European Parliament agreed on a text for an EU Linking Directive allowing the use of JI and CDM emission units in the EU Emission Trading Scheme (EU-ETS); and (b) all countries (and/or regions within countries) with GHG emission obligations that may choose to use domestic emissions trading and project-based mechanisms to meet their GHG commitments. The paper includes the following elements: (1) an overview of the different flexibility mechanisms (i.e. GHG emissions trading and PBMs), including a brief description and comparisons between the mechanisms (Section 3); (2) an exploration of the issues that emerge when project-based mechanisms link with domestic emissions trading schemes, as well as possible solutions to address some of the challenges raised (Section 4); (3) a case study examining the EU-ETS and the EU Linking Directive on project-based mechanisms, in particular on how the EU is addressing in a practical context relevant linking issues (Section 5); (4) a

  18. Emissions trading in international aviation. Possible design options for an emissions trading scheme and their impact on climate change and the aviation industry

    International Nuclear Information System (INIS)

    Deuber, Odette; Cames, Martin

    2003-01-01

    According to the Intergovernmental Panel on Climate Change (IPCC), the contribution of aviation to global warm-ing was 3.5 % in 1992. Considering the average growth rate of 4 % per year, the share might be more than doubled by the end of the first commitment period of the Kyoto Protocol (2012). However, due to difficulties in allocating emissions from international aviation to individual countries, these emissions are exempt from commitments under the Kyoto Protocol, although in Article 2.2 the Parties to the Protocol are obliged to stabilize and reduce greenhouse gas emissions from international aviation. To comply with this obligation, the introduction of emissions trading in international aviation is being discussed within the International Civil Aviation Organisation (ICAO). This paper analyses the design options of such an emissions trading scheme and its impact on climate change and the aviation industry. Among other matters, it discusses issues such as open and closed emissions trading schemes, coverage of gases, initial allocation of allowances and possible caps for the aviation industry. It is based on a re-search project that has been carried out on behalf of the German Federal Environmental Agency. The paper reveals that despite complex tropospheric and stratospheric interactions, as well as allocation problems, there are adequate structural options for the design of an emissions trading scheme. Given an adequate structure, emissions trading offers a great incentive to optimise flight routes not only according to economic but also to climatic factors. Consequently, the system would effectively reduce the contribution of aviation to climate change

  19. Fraud risks in emissions trading

    International Nuclear Information System (INIS)

    2010-09-01

    The system of emission trading is a complex composed entity with on the one hand a strong environmental component and on the other hand a financial world that hooked on this instrument. In chapter 2 an introduction is provided to the emission trading system. The subsequent chapters elaborate Types of Fraud (Chapter 3), Powers (Chapter 4), and Instruments (Chapter 5). The report shows that various forms of fraud are occurring in emission trading, such as VAT fraud and identity theft. [nl

  20. Legal frameworks for emissions trading in the European Union

    Energy Technology Data Exchange (ETDEWEB)

    Maeaettae, K.; Anttonen, K. (Univ. of Joensuu (Finland)). Email: kalle.maatta@joensuu.fi; Upston-Hooper, K. (GreenStream Networks, Helsinki (Finland)); Mehling, M. (Univ. of Greifswald (Germany)); Perrels, A. (Government Institute for Economic Research VATT, Helsinki (Finland)), email: adriaan.perrels@vatt.fi

    2009-07-01

    The project is based on a comparative and pragmatic review of the legal frameworks for implementing the EU Emission Trading Scheme (ETS) in four EU jurisdictions (Finland, Sweden, United Kingdom and Germany). The project does not seek to examine the rationale of utilizing tradable mechanisms nor assess the costs and benefits of doing so. Its primary focus is to undertake a detailed study of the legal realities involved in implementing the EU ETS, particularly those issues of commercial importance such as taxation and accounting rules. The methodology adopted has been to formulate a comprehensive questionnaire (of approximately 70 questions) to be used as the basis of national reports together with a stand alone analysis by VATT, and in turn use the national reports and VATT study as the building blocks of a comparative overview report. The questionnaire seeks to highlight those significant legal and regulatory issues that impact on the establishment of emission allowance trading arrangements within the respective jurisdictions. The comparative analysis of these issues will focus on 'golden threads' of similarity and difference that impact on the establishment of an internal market within the European Union for the trading of emissions allowances. (orig.)

  1. Legal frameworks for emissions trading in the European Union

    International Nuclear Information System (INIS)

    Upston-Hooper, K.; Perrells, A.; Anttonen, K.; Mehling, M.

    2007-01-01

    The Project is based on a comparative and pragmatic review of the legal frameworks for implementing the EU Emission Trading Scheme (ETS) in four EU jurisdictions (Finland, Sweden, United Kingdom and Germany). The Project does not seek to examine the rationale of utilizing tradable mechanisms nor assess the costs and benefits of doing so. Its primary focus is to undertake a detailed study of the legal realities involved in implementing the EU ETS, particularly those issues of commercial importance such as taxation and accounting rules. The methodology adopted has been to formulate a comprehensive questionnaire (of approximately 70 questions) to be used as the basis of national reports together with a stand alone analysis by VATT, and in turn use the national reports and VATT study as the building blocks of a comparative overview report. The questionnaire seeks to highlight those significant legal and regulatory issues that impact on the establishment of emission allowance trading arrangements within the respective jurisdictions. The comparative analysis of these issues will focus on 'golden threads' of similarity and difference that impact on the establishment of an internal market within the European Union for the trading of emissions allowances. (orig.)

  2. 76 FR 15 - Approval and Promulgation of Implementation Plans; Texas; Emissions Banking and Trading of...

    Science.gov (United States)

    2011-01-03

    ... Promulgation of Implementation Plans; Texas; Emissions Banking and Trading of Allowances Program AGENCY... to the Texas State Implementation Plan (SIP) that create and amend the Emissions Banking and Trading... revisions to the Texas State Implementation Plan (SIP) that create and amend the Emissions Banking and...

  3. Climate, energy and emissions trading in the EU and DK

    International Nuclear Information System (INIS)

    Dyck-Madsen, S.

    2004-04-01

    European Union member states are facing two serious challenges: human-induced climatic changes and oil shortage. Evidence that human-induced global heating is threatening the climatic balance is piling up and the conflicts over the last oil resources are becoming critical. The European Union has neither large oil resources nor foreign-political or military power to conquer additional oil resources. The EU Commission's awareness of these facts is influencing the EU energy and climate policy. Recently EU launched the directive on carbon dioxide emissions trading within certain energy-heavy sectors. The greenhouse gas emission allowance trading directive requires a national ceiling on the allocation of CO 2 quotas for the heavy industry and energy sectors, thus adapting the quantity of quotas to the Kyoto requirements. This requirement can be quite extensive for the sectors affected by the greenhouse gas emission allowance trading directive, if national governments choose to abstain from political intervention in order to reduce release of greenhouse gases in sectors outside the emissions trading, e.g. agriculture, transportation, households, and smaller industry and service. Lack of action in these sectors will require the governments to impose either large burdens or use of national Joint Implementation and Clean Development agreements on the heavy industry and energy sectors outside national borders, thus conflicting with the Kyoto Protocol. (BA)

  4. Price floors for emissions trading

    International Nuclear Information System (INIS)

    Wood, Peter John; Jotzo, Frank

    2011-01-01

    Price floors in greenhouse gas emissions trading schemes can guarantee minimum abatement efforts if prices are lower than expected, and they can help manage cost uncertainty, possibly as complements to price ceilings. Provisions for price floors are found in several recent legislative proposals for emissions trading. Implementation however has potential pitfalls. Possible mechanisms are government commitments to buy back permits, a reserve price at auction, or an extra fee or tax on acquittal of emissions permits. Our analysis of these alternatives shows that the fee approach has budgetary advantages and is more compatible with international permit trading than the alternatives. It can also be used to implement more general hybrid approaches to emissions pricing. - Research highlights: → Price floors for emissions trading schemes guarantee a minimum carbon price. → Price floors mean that emissions can be less than specified by the ETS cap. → We examine how price floors can relate to different policy objectives. → We compare different mechanisms for implementing a price floor. → We find that a mechanism where there is an extra tax or fee has advantages.

  5. Greenhouse gas emissions trading: Cogen case studies in the early trading market

    International Nuclear Information System (INIS)

    Buerer, Mary Jean

    2001-01-01

    An increasing number of companies are interested in opportunities to trade their reduction in greenhouse gas emissions from cogeneration on the emerging greenhouse gas emissions market. Only the UK and Denmark currently have emissions trading schemes, but they are under development in other European countries. Two frameworks currently exist for trading. Baseline-and-credit trading is used in Canada where companies can take part in two voluntary schemes (Greenhouse Gas Emission Reduction Trading Pilot or Clean Air Canada Inc). An example project from the CHP unit at DuPont's Maitland chemical production facility is given, with details of the baselines and calculations used. The other option is company-wide emissions trading. The example given here features the CHP units at BP's refinery and chemicals operations in Texas. The potential revenue from emission reduction projects could help to boost the economics of cogeneration projects

  6. CO{sub 2} emissions trading. A study on the conditions and necessities for starting national emissions trading; CO{sub 2} -paeaestoekauppa. Selvitys kansallisen paeaestoekaupan kaeyttoeoenoton edellytyksistae sekae siinae huomioitavista seikoista

    Energy Technology Data Exchange (ETDEWEB)

    Maeaettae, K.

    2000-02-01

    This study analyses the applicability of emissions trading as a means of steering climate policy. Attention is paid to limiting carbon dioxide emissions in particular at national level. The model used in the implementation of national CO{sub 2} emissions trading are the emissions trading schemes applied in the United States, especially the trading in sulphur dioxide allowances, included in their Acid Rain Programme. All schemes applied until now are studied in order to specify what kinds of hindrances there could be to the well-functioning of emissions trading and also to map out what kinds of institutional innovations have been developed in practice to improve emissions trading. This study excludes the joint implementation procedure and the clean development mechanism. In fact, international control related to climate policy has been left to minor attention in other respects, too. In addition to the subjects mentioned above, this study also describes the terminological and legal framework within which emissions trading is to be practised. In this connection, it has been considered necessary to deal with technical legislative details, since, as it has been stated in relation to emissions trading, 'the devil is likely to be in details'. Thus this study discusses, among others, issues pertaining to the construing of. the criterion for an emission quota, i.e. what is actually traded in emissions trading, how the emission quotas and rights can be used (e.g. the emission deposit and emission derivatives), what kinds of provisions should be laid down on eligibility to emissions trading or on who can participate in emissions trading, what should be the validity period of an emission right, what would be the most appropriate way to organise the administrative control of emissions trading, and what kinds of sanctions should be laid down for infringements related to emissions trading. This study has been carried out by examining mainly U.S. literature on this

  7. An emissions trading scheme design for power industries facing price regulation

    International Nuclear Information System (INIS)

    Kim, Yong-Gun; Lim, Jong-Soo

    2014-01-01

    The electricity market, monopolistic in nature, with government price regulation, poses a serious challenge for policy makers with respect to the cost-effectiveness of emissions trading, particularly in Asian countries. This paper argues that a cap-and-trade regulatory system for indirect emissions combined with a rate-based allocation system for direct emissions can achieve market efficiency even in the presence of price and quantity controls in the electricity market. This particular policy mix could provide appropriate incentives for industries to reduce their electricity consumption while inducing power producers to reduce their direct carbon emissions cost-effectively in conditions where there is strict government control of electricity prices. Another advantage of the suggested policy mix is that it allows carbon leakage in cross-border power trades to be effectively eliminated. - Highlights: • A rate-based allocation induces power producers to minimize direct emissions. • A cap-and-trade on indirect emission induces firms to reduce electricity consumption. • These two can jointly achieve market efficiency even in the regulated power market

  8. Simulating greenhouse gas (GHG) allowance cost and GHG emission reduction in Western Europe

    International Nuclear Information System (INIS)

    Delarue, Erik; Lamberts, Hans; D'haeseleer, William

    2007-01-01

    Due to the growing concern for global warming, the EU25 have implemented the European Union Greenhouse Gas Emission Trading Scheme (EU ETS). In the first trading period (2005-2007), part of the targeted GHG emission reductions presumably will have to result from a switch from coal fired electricity generation to gas fired electricity generation. It is possible to calculate the allowance cost necessary to switch a certain coal fired plant with a certain gas fired plant in the merit order. The allowance cost obtained is a so called switching point. When comparing historic European Union Allowance (EUA) prices (2005) with the corresponding historic switching points, the EUA prices were found high enough to cause a certain switch in the summer season. This finding leads to the use of switching points in establishing allowance cost profiles for several scenarios. A variable gas price profile is used in the simulation tool E-Simulate to simulate electricity generation and related GHG emissions in an eight zonal model representing Western Europe. Several GHG allowance cost profile scenarios are examined. For each scenario, electricity generation in the considered countries is clarified. The focus however lies on the GHG emission reduction potentials. These potentials are addressed for each scenario

  9. The game of trading jobs for emissions

    International Nuclear Information System (INIS)

    Arto, I.; Rueda-Cantuche, J.M.; Andreoni, V.; Mongelli, I.; Genty, A.

    2014-01-01

    Following the debate on the implications of international trade for global climate policy, this paper introduces the topic of the economic benefits from trade obtained by exporting countries in relation to the emissions generated in the production of exports. In 2008, 24% of global greenhouse gas (GHG) emissions and 20% of the employment around the world were linked to international trade. China “exported” 30% of emissions and hosted 37.5% of the jobs generated by trade worldwide. The European Union and the United States of America were the destination of 25% and 18.4% of the GHG emissions embodied in trade. The imports of these two regions contributed to the creation of 45% of the employment generated by international trade. This paper proposes the idea of including trade issues in international climate negotiations, taking into account not only the environmental burden generated by developed countries when displacing emissions to developing countries through their imports, but also the economic benefits of developing countries producing the goods exported to developed countries. - Highlights: • Employment and trade issues should be considered in GHG emission reduction policies. • In 2008 24% of global GHG emissions and 20% of the employment are linked to trade. • 43% of GHG and 45% of employment embedded in trade are due to EU and US imports. • China exports 30% of the GHG and hosts 38% of the jobs generated by trade worldwide

  10. Emissions trading under market imperfections

    Energy Technology Data Exchange (ETDEWEB)

    Lappi, P.

    2013-08-15

    In this thesis we consider emissions trading under various market imperfections such as uncertainty over permit price, imperfect competition and noncompliance. First, we study the effects of uncertain permit price on the firms choice of emission intensive and clean inputs in an multi-input production process. We also assess the risk aversion factors of some Finnish heat and power producers. Second, we study imperfect competition in output and permit markets with a two-stage model, where output decision is made before permit trades. The emphasis is on the strategic interaction between firms and on the efficiency increasing regulation. Third, we turn back to uncertainty and analyse the welfare difference between emissions trading and emission tax, when some of the firms may be noncompliant. The main finding is that welfare is greater with emission tax than with emissions trading, when at least one firm is noncompliant. Finally, we extend some existing models of permit banking and borrowing to encompass also noncompliant behavior of firms. Here, we analyse the incentives of compliant firms to become noncompliant at some point in time and also the time paths of the choice variables. (orig.)

  11. Real options theory to the pricing of allowances contract to carbon emission

    International Nuclear Information System (INIS)

    Horii, Leticia Takahashi; Parente, Virginia; Goldemberg, Jose

    2010-01-01

    The objective of this work is to develop a pricing model contract for allowances to emit carbon through Real Options. Emissions allowances are equivalent tons of carbon traded between Annex I countries from companies that have the ability to reduce their emissions beyond what is assigned to it. The surplus of emission reductions produced by these companies may be sold in the emissions market. Thus, this work can contribute to improving the management of contractual risk and enable companies estimated the price at which a contract can be signed. Properly evaluate the contracts that the market environment is a challenge for companies. The historic low of information and randomness in the price of carbon allowances in the spot market suggest extreme caution in its use. (author)

  12. Emissions trading: saviour or destroyer?

    International Nuclear Information System (INIS)

    Dougas, P.; Kearney, B.

    2007-01-01

    Australia is almost certain to get a greenhouse gas emissions trading scheme in the next five years. Trading is now embraced by both political parties at the federal level and by all the states, as a key policy to address greenhouse gas emissions. But the story does not end there - there are crucial design and implementation decisions that will affect the efficiency and effectiveness of an emissions trading scheme and it is vital for the Australian economy that we get this right. Addressing greenhouse gas emissions will be a massive and costly effort and we need to make sure this happens, but at the lowest possible cost. Populist solutions and silver bullets abound, but there are no simple solutions and we need to start taking action on a broad front to minimise the cost. Emissions trading will have significant and lasting effects of the broader Australian economy, but is likely to be felt most in the energy sector. We need informed and rational discussion and policy development to get it right

  13. Five essays on emissions trading

    Energy Technology Data Exchange (ETDEWEB)

    Godal, Odd

    2005-03-01

    The thesis discusses energy, environmental and economic aspects of polluting emissions with emphasis on greenhouse gas trade and political measures. 5 papers are included with titles: 1) Carbon trading across sources and periods constrained by the Marrakesh Accords which examines examine the potential effects on permit prices and abatement costs of four compliance rules governing emissions trade across sources and periods in the Kyoto Protocol: The banking rule that allows excess permits to be used later; the restoration rate rule that penalizes borrowing; the commitment period reserve rule that limits sales; and finally, the suspension rule that restricts borrowing and sales. Our framework is a two-period model where parties may be out of compliance in the Kyoto period, but are assumed to comply at a later time. Under varying assumptions about market power and US participation, we find that the rules may have pronounced effects on individual costs, but overall efficiency is not severely affected. 2) Affine price expectations and equilibrium in strategic markets which considers equilibrium in imperfect markets, featuring agents who exchange property rights. Important cases include trade in emission permits of greenhouse gases, or exchange of catch quotas of fish. Some players act strategically while others are price-takers. The ''demand curve'' is endogenous, and it affects all parties. The resulting, reduced objectives need not be concave. Therefore, existence of equilibrium is a delicate matter. To simplify things, and to ensure availability of ''equilibria up to first order'', we presume that all strategic agents form affine price expectations. 3) Greenhouse gases, quota exchange and oligopolistic competition that discusses the problem how quotas can be shared in the ''emissions market'' and how can the agents reach as overall equilibrium in the product market. 4) Strategic markets in property rights

  14. Five essays on emissions trading

    Energy Technology Data Exchange (ETDEWEB)

    Godal, Odd

    2005-03-01

    The thesis discusses energy, environmental and economic aspects of polluting emissions with emphasis on greenhouse gas trade and political measures. 5 papers are included with titles: 1) Carbon trading across sources and periods constrained by the Marrakesh Accords which examines examine the potential effects on permit prices and abatement costs of four compliance rules governing emissions trade across sources and periods in the Kyoto Protocol: The banking rule that allows excess permits to be used later; the restoration rate rule that penalizes borrowing; the commitment period reserve rule that limits sales; and finally, the suspension rule that restricts borrowing and sales. Our framework is a two-period model where parties may be out of compliance in the Kyoto period, but are assumed to comply at a later time. Under varying assumptions about market power and US participation, we find that the rules may have pronounced effects on individual costs, but overall efficiency is not severely affected. 2) Affine price expectations and equilibrium in strategic markets which considers equilibrium in imperfect markets, featuring agents who exchange property rights. Important cases include trade in emission permits of greenhouse gases, or exchange of catch quotas of fish. Some players act strategically while others are price-takers. The ''demand curve'' is endogenous, and it affects all parties. The resulting, reduced objectives need not be concave. Therefore, existence of equilibrium is a delicate matter. To simplify things, and to ensure availability of ''equilibria up to first order'', we presume that all strategic agents form affine price expectations. 3) Greenhouse gases, quota exchange and oligopolistic competition that discusses the problem how quotas can be shared in the ''emissions market'' and how can the agents reach as overall equilibrium in the product market. 4) Strategic markets in property rights without price-takers that deals with Cournot-type models of

  15. Clean air, clear market. Making emissions trading work: The role of a computer-assisted auction

    International Nuclear Information System (INIS)

    Bartels, C.W.; Marron, D.B.; Lipsky, M.I.

    1993-01-01

    Creating a new commodity presents the chance to develop new markets in which to trade it. In many cases, existing markets can be adapted easily; in other cases it proves worthwhile to develop new forms that reflect special characteristics of the commodity and those who trade it. In the case of the sulfur dioxide (SO 2 ) emission allowances created by the Clean Air Act Amendments of 1990, a number of standard market forms already have been adopted. While these will prove useful for handling some transactions, a new Market Clearing Auction (MCA) offers buyers and sellers a centralized marketplace for trading SO 2 emission allowances. The MCA, which was developed by the brokerage firm Cantor Fitzgerald, is a computer-assisted open-quotes smartclose quotes auction designed to replicate the outcome of an efficient market in emission allowances, and accepts bids and offers for any possible combination of allowances. Orders can be submitted for streams of allowances. Orders can be submitted for streams of allowances covering more than one year. The auction then determines the combination of bids and offers that maximizes the gains from trades in the market, and establishes uniform market clearing prices for each allowance issue (1995, 1996, and so on). Once executed, trades are settled on a cash-forward basis; that is, allowances are delivered and payments are made at future dates

  16. Simulation analysis of emissions trading impact on a non-utility power plant

    International Nuclear Information System (INIS)

    Imran, Kashif; Ahmad, Intesar; Hassan, Tehzeebul; Aslam, Muhammad Farooq; Ngan, Hon-Wing

    2009-01-01

    Non-utility power plants can competitively participate in open electricity market to reduce operational costs but in the absence of pollution charges or emissions trading such generators are tempted to cause greater pollution for profit maximization. This paper presents a solution that incorporates pollution charges for nitrogen oxides and sulphur dioxide emissions in line with existing national environmental quality standards and a new carbon dioxide emissions trading mechanism. A novel approach has been used for allocation of allowable emissions that favors efficiently fuelled and environmentally friendly operation for maximizing profit. Impact of proposed carbon trading on economical utilization of enormous indigenous coal reserves has been analyzed and determined to be acceptable. Software developed in this paper, harnessing Sequential Quadratic Programming capabilities of Matlab, is shown to be adequate simulation tool for various emissions trading schemes and an useful operational decision making tool for constrained non-linear optimization problem of a non-utility power plant. (author)

  17. Simulation analysis of emissions trading impact on a non-utility power plant

    Energy Technology Data Exchange (ETDEWEB)

    Imran, Kashif; Ahmad, Intesar [Department of Electrical Engineering, COMSATS Institute of IT, Lahore (Pakistan); Hassan, Tehzeebul [Department of Electrical Engineering, University of Engineering and Technology (UET), Lahore (Pakistan); Aslam, Muhammad Farooq [Department of Electrical Engineering, University of Management and Technology (UMT), Lahore (Pakistan); Ngan, Hon-Wing [Department of Electrical Engineering, Hong Kong Polytechnic University (China)

    2009-12-15

    Non-utility power plants can competitively participate in open electricity market to reduce operational costs but in the absence of pollution charges or emissions trading such generators are tempted to cause greater pollution for profit maximization. This paper presents a solution that incorporates pollution charges for nitrogen oxides and sulphur dioxide emissions in line with existing national environmental quality standards and a new carbon dioxide emissions trading mechanism. A novel approach has been used for allocation of allowable emissions that favors efficiently fuelled and environmentally friendly operation for maximizing profit. Impact of proposed carbon trading on economical utilization of enormous indigenous coal reserves has been analyzed and determined to be acceptable. Software developed in this paper, harnessing Sequential Quadratic Programming capabilities of Matlab, is shown to be adequate simulation tool for various emissions trading schemes and an useful operational decision making tool for constrained non-linear optimization problem of a non-utility power plant. (author)

  18. Multi-period emissions trading in the electricity sector-winners and losers

    International Nuclear Information System (INIS)

    Bode, Sven

    2006-01-01

    In the context of controlling greenhouse gas emissions, the directive on a Europe-wide trading scheme may be perceived as one of the most important milestones in recent years. Prior to its start, however, a number of very specific design features have to be agreed upon. Regarding the allocation of allowances, a distribution (almost) free of charge seems to be the most likely choice. An aspect that has interestingly attracted little attention in the past is the question of how to allocate emission rights over time. The following paper analyses different allocation options in multi-period emissions trading that are currently discussed in the European context. The options are applied for the electricity sector which is simulated over two periods. The paper distinguishes between a market effect of emissions trading and compliance costs for meeting the emission reduction obligation. The market effect results from a price increase which is due to the fact that opportunity costs for using allowances must be considered. It turns out that the electricity sector as a whole gains from the introduction of the instrument due to the increase of the electricity price. With regard to the different allocation options, it is found that utilities have different preferences depending on the fuel used

  19. Improving efficiency in bilateral emission trading

    International Nuclear Information System (INIS)

    Burtraw, D.; Harrison, K.W.; Turner, P.

    1998-01-01

    When environmental damages from emissions are spatially nonuniform, permit trading has been modeled most often as a 'pollution offset program' in which emission permits are traded between agents, subject to constraints on ambient air quality. To date the institution envisioned to implement such a program involves trading on a bilateral and sequential basis. However, simulation studies indicate that the sequence of trades may alter the outcome and undermine the cost savings from a pollution offset program. This paper identifies a design for the trading institution that tends to overcome this phenomenon and improve the efficiency of equilibria obtained in a simulation model. We model a bilateral trading process for the reduction of sulfur dioxide emissions with a stochastic description of the sequence of trades within groups of nations in Europe. When trading takes place between disaggregated, stylistic representations of economic enterprises, rather than between national governments, a significantly greater portion of potential savings is achieved. In fact, under most sets of assumptions, approximate first order stochastic dominance is achieved wherein the more decentralized the trading agents, the greater the expected savings from a trading program. 4 figs., 2 tabs., 31 refs

  20. Emissions trading in China: A conceptual 'leapfrog' approach?

    International Nuclear Information System (INIS)

    Raufer, Roger; Li, Shaoyi

    2009-01-01

    China is well aware of the advantages of quantity-based economic instruments (i.e., emissions trading) for domestic pollution control, but pilot studies and experimental programs in Taiyuan, Hong Kong/Guangdong, and other locations have not been successful. This paper proposes a very different type of emissions trading program, designed with Chinese implementation concerns in mind. It has three component parts: (1) a real-time intermittent control system (ICS) strategy designed to address public health concerns in the near term; (2) software-oriented Predictive emissions monitoring systems (PEMS) targeting process parameter (rather than emission) reporting from individual emission sources; and (3) real-time emissions markets responding to the ICS constraint. The technical and political difficulties associated with implementing such a system are recognized as daunting. However, such an approach would 'leapfrog' over existing systems, allowing the country to develop a comprehensive air pollution control strategy as economic growth occurs, continuously improving air quality in a cost efficient manner, utilizing both advanced technology and market-based control approaches in a manner consistent with China's unique environmental needs. It would also lay the groundwork for the eventual pricing of CO 2 and other greenhouse gases within China.

  1. The evolution of emissions trading in the EU. Tensions between national trading schemes and the proposed EU directive

    International Nuclear Information System (INIS)

    Boemare, Catherine; Quirion, Philippe; Sorrell, Steve

    2003-12-01

    The EU is pioneering the development of greenhouse gas emissions trading, but there is a tension between the 'top-down' and 'bottom-up' evolution of trading schemes. While the Commission is introducing a European emissions trading scheme (EU ETS) in 2005, several member states have already introduced negotiated agreements that include trading arrangements. Typically, these national schemes have a wider scope than the proposed EU directive and allow firms to use relative rather than absolute targets. The coexistence of 'top-down' and 'bottom-up' trading schemes may create some complex problems of policy interaction. This paper explores the potential interactions between the EU ETS and the negotiated agreements in France and UK and uses these to illustrate some important generic issues. The paper first describes the proposed EU directive, outlines the UK and French policies and compares their main features to the EU ETS. It then discusses how the national and European policies may interact in practice. Four issues are highlighted, namely, double regulation, double counting of emission reductions, equivalence of effort and linking trading schemes. The paper concludes with some recommendations for the future development of UK and French climate policy

  2. The response of the Beijing carbon emissions allowance price (BJC) to macroeconomic and energy price indices

    International Nuclear Information System (INIS)

    Zeng, Shihong; Nan, Xin; Liu, Chao; Chen, Jiuying

    2017-01-01

    In 2013, China opened pilot carbon emission trading markets in seven provinces, where carbon emission allowances have now been traded for more than two years. In this paper, we employ a structural VAR model and the price of the Beijing carbon emission allowance to study the dynamic relationships among the price of the carbon emission allowance, economic development and the price of energy. This paper's data cover the period from April 2, 2014 to November 6, 2015. This paper provides information that will be helpful to both investors and governmental policy makers. The results show that (1) an increase of one standard deviation in the coal price leads to an initial increase of approximately 0.1% in the Beijing carbon price. After 2 days, there is a decrease of less than 0.1%, and the price gradually increases by approximately 0.1% after 30 days; (2) the price of the Beijing carbon emission allowance is mainly affected by its own historical price; (3) the Beijing carbon emission allowance price, crude oil price, natural gas price and economic development have positive – albeit non-significant – correlations. - Highlights: • This paper examines the response of the Beijing carbon emission allowance price. • A rise in coal prices will have different effects in different lag stages. • There are positive correlations between the BJC and economic development.

  3. Does EU ETS lead to emission reductions through trade? The case of the Swedish emissions trading sector participants

    International Nuclear Information System (INIS)

    Sandoff, Anders; Schaad, Gabriela

    2009-01-01

    The first trading period of the European Emissions Trading Scheme (EU ETS) has recently come to an end. The experiences of the actors in the trading sector will be of great importance in evaluating the aim and direction of this 'Grand Policy Experiment'. This paper gives an account of the attitudes and actions of the companies included in the Swedish emissions trading sector after about 15 months of experience with the system. The data are based on a study commissioned by the Swedish Environmental Protection Agency, and is a comprehensive survey that encompasses all companies operating installations included in the Swedish Emission Trading Registry. However, the results point in a somewhat disquieting direction. Although the Swedish companies have shown significant interest in reducing emissions, this survey indicates that this is done without close attention to the pricing mechanism of the market-based instruments. If this praxis is widespread within the European trading sector, it can have a serious negative effect on the efficiency of the system.

  4. What Is Emissions Trading?

    Science.gov (United States)

    Learn the basics about how emissions trading uses a market-based policy tool used to control large amounts of pollution emissions from a group of sources in order to protect human health and the environment.

  5. Imported emissions. The world trade stowaway

    International Nuclear Information System (INIS)

    Fink, Meike; Gautier, Celia

    2013-05-01

    This study first gives an overview of existing tools and methodological challenges to account emissions included in consumed products fabricated elsewhere. It notably discusses the passage from a methodology based on a production principle to a methodology based on a consumption principle, outlines the different methodologies associated with the different analysis levels, and the importance of uncertainty sources. The second part proposes a view on emission flows included in exports and imports. It addresses the following issues: the international level, increasing importance of emissions transferred via world trade, emissions related to consumption per capita and per social class, carbon and energy intensity of products at the origin of emissions, composition of imported and exported products and intensity of their emissions, impact of a methodological change on greenhouse gas emissions by France, extent of emissions imported in France, and Germany as the first trade partner and emission importer of France. The third part discusses the political implications of an accounting of emissions related to consumption and to world trade

  6. Linking GHG Emission Trading Systems and Markets

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2006-07-01

    Several different types of links are possible between different GHG-mitigation systems. These include: Linking two or more emission trading schemes so that emissions trading can occur both within and between different schemes ('direct links'); and Linking emission trading systems to registries/mechanisms and systems that generate offsets from project based mechanisms or from direct purchases/transfers of AAUs ('indirect links').

  7. Enforcement of emissions trading: Sanction regimes of greenhouse gas emissions trading in the EU and China

    NARCIS (Netherlands)

    Peeters, M.G.W.M.; Chen, Huizhen

    2015-01-01

    Abstract: This chapter aims to further the debate regarding the role of law for establishing an adequate enforcement strategy for an emissions trading scheme. We focus on sanction regimes within the EU ETS and the Chinese emissions trading pilot projects. Section 2 sets the scene by pointing at the

  8. Enforcement of emissions trading - sanction regimes of greenhouse gas emissions trading in the EU and China

    NARCIS (Netherlands)

    Peeters, Marjan; Chen, Huizhen; Weishaar, Stefan

    2016-01-01

    This chapter aims to further the debate regarding the role of law for establishing an adequate enforcement strategy for an emissions trading scheme. We focus on sanction regimes within the EU ETS and the Chinese emissions trading pilot projects. Section 2 sets the scene by pointing at the need of an

  9. Methodology for the free allocation of emission allowances in the EU ETS post 2012. Sector report for the chemical industry

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2009-11-15

    In 2013, the third trading period of the EU emission trading scheme (EU ETS) will start. With a few exceptions, no free allocation of emission allowances is foreseen in this third trading period for the emissions related to the production of electricity. These emission allowances will be auctioned. For other emissions, transitional free allocation of emission allowances is envisioned. This free allocation will be based on Community wide allocation rules that will, to the extent feasible, be based on ex-ante benchmarks. In 2013, the free allocation is 80% of the quantity determined via these rules, going down to 30% in 2020. An exception is made for activities that are deemed to be exposed to a significant risk of carbon leakage. These activities will receive an allocation of 100% of the quantity determined via the rules. The benchmarks should in principle be calculated for products, i.e. a specific performance per unit productive output, to ensure that they maximize greenhouse gas reductions throughout each production process of the sectors concerned. In this study for the European Commission, a blueprint for a methodology based on benchmarking is developed to determine the allocation rules in the EU ETS from 2013 onwards. In case where benchmarking is not regarded feasible, alternative approaches are suggested. The methodology allows determining the allocation for each EU ETS installation eligible for free allocation of emission allowances. The focus of this study is on preparing a first blueprint of an allocation methodology for free allocation of emission allowances under the EU Emission Trading Scheme for the period 2013-2020 for installations in the refinery industry. The report should be read in conjunction with the report on the project approach and general issues.

  10. Methodology for the free allocation of emission allowances in the EU ETS post 2012. Sector report for the refinery industry

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2009-11-15

    In 2013, the third trading period of the EU emission trading scheme (EU ETS) will start. With a few exceptions, no free allocation of emission allowances is foreseen in this third trading period for the emissions related to the production of electricity. These emission allowances will be auctioned. For other emissions, transitional free allocation of emission allowances is envisioned. This free allocation will be based on Community wide allocation rules that will, to the extent feasible, be based on ex-ante benchmarks. In 2013, the free allocation is 80% of the quantity determined via these rules, going down to 30% in 2020. An exception is made for activities that are deemed to be exposed to a significant risk of carbon leakage. These activities will receive an allocation of 100% of the quantity determined via the rules. The benchmarks should in principle be calculated for products, i.e. a specific performance per unit productive output, to ensure that they maximize greenhouse gas reductions throughout each production process of the sectors concerned. In this study for the European Commission, a blueprint for a methodology based on benchmarking is developed to determine the allocation rules in the EU ETS from 2013 onwards. In case where benchmarking is not regarded feasible, alternative approaches are suggested. The methodology allows determining the allocation for each EU ETS installation eligible for free allocation of emission allowances. The focus of this study is on preparing a first blueprint of an allocation methodology for free allocation of emission allowances under the EU Emission Trading Scheme for the period 2013-2020 for installations in the refinery industry. The report should be read in conjunction with the report on the project approach and general issues.

  11. Potential impact of (CET) carbon emissions trading on China's power sector: A perspective from different allowance allocation options

    International Nuclear Information System (INIS)

    Cong, Rong-Gang; Wei, Yi-Ming

    2010-01-01

    In Copenhagen climate conference China government promised that China would cut down carbon intensity 40-45% from 2005 by 2020. CET (carbon emissions trading) is an effective tool to reduce emissions. But because CET is not fully implemented in China up to now, how to design it and its potential impact are unknown to us. This paper studies the potential impact of introduction of CET on China's power sector and discusses the impact of different allocation options of allowances. Agent-based modeling is one appealing new methodology that has the potential to overcome some shortcomings of traditional methods. We establish an agent-based model, CETICEM (CET Introduced China Electricity Market), of introduction of CET to China. In CETICEM, six types of agents and two markets are modeled. We find that: (1) CET internalizes environment cost; increases the average electricity price by 12%; and transfers carbon price volatility to the electricity market, increasing electricity price volatility by 4%. (2) CET influences the relative cost of different power generation technologies through the carbon price, significantly increasing the proportion of environmentally friendly technologies; expensive solar power generation in particular develops significantly, with final proportion increasing by 14%. (3) Emission-based allocation brings about both higher electricity and carbon prices than by output-based allocation which encourages producers to be environmentally friendly. Therefore, output-based allocation would be more conducive to reducing emissions in the Chinese power sector. (author)

  12. Trading emissions improve air quality

    International Nuclear Information System (INIS)

    Lents, J.M.

    1993-01-01

    While admitting sharply contrasting views exist, James M. Lents of the South Coast Air Quality Management District in southern California sees emissions trading open-quotes as a lifesaver for our troubled planet.close quotes He explains: open-quotes If political support for the environment is to be maintained, we must seek the most economical and flexible means of pursuing cleanup. At present, market incentives and emissions trading represent our best hope.close quotes Lents is putting his money where his pen is. The air quality management district he heads plans to use market incentives, including emissions trading, to reduce air pollution in the notoriously dirty southern California area. When the system goes into operation in 1994, he estimates it will save southern California businesses more than $400 million a year in compliance costs, while also making major improvements in the region's air quality. If the idea works there, why won't it work elsewhere, even on a global scale, Lents asks? He believes it will. But open-quotes the ultimate success of emissions-trading programs, whether regional, national, or international in scope, lies in the proof that they're actually achieving reductions in harmful emissions,close quotes he emphasizes. open-quotes These reductions must be real and verifiable to satisfy the Clean Air Act and a skeptical public.close quotes

  13. Are electricity risk premia affected by emission allowance prices? Evidence from the EEX, Nord Pool and Powernext

    International Nuclear Information System (INIS)

    Daskalakis, George; Markellos, Raphael N.

    2009-01-01

    The links between emission and energy markets are of great interest to practitioners, academics and policy makers. In this paper, it is conjectured that a positive relationship exists between emission allowance spot returns and electricity risk premia within the European Union Emissions Trading Scheme (EU ETS). We discuss how this can be justified on the basis of the substantial uncertainties in the carbon markets. We also argue that this link could be due to trading strategies followed by electricity producers who attempt to exploit their initial allocation of free allowances. Analysis of data from three major markets, the EEX, Nord Pool and Powernext, offers empirical support to our conjecture. These findings have significant policy implications since they imply that efforts should be made in order to reduce the uncertainty in the carbon markets by clearly defining the EU ETS regulative framework and design over the next years. Moreover, our results suggest that the allocation of free allowances and their unrestricted trading enable electricity producers to accomplish windfall profits in the derivatives market at the expense of other market participants. (author)

  14. Permit trading and credit trading

    DEFF Research Database (Denmark)

    Boom, Jan-Tjeerd; R. Dijstra, Bouwe

    This paper compares emissions trading based on a cap on total emissions (permit trading) and on relative standards per unit of output (credit trading). Two types of market structure are considered: perfect competition and Cournot oligopoly. We find that output, abatement costs and the number...... of firms are higher under credit trading. Allowing trade between permit-trading and credit-trading sectors may increase in welfare. With perfect competition, permit trading always leads to higher welfare than credit trading. With imperfect competition, credit trading may outperform permit trading....... Environmental policy can lead to exit, but also to entry of firms. Entry and exit have a profound impact on the performance of the schemes, especially under imperfect competition. We find that it may be impossible to implement certain levels of total industry emissions. Under credit trading several levels...

  15. Implementing a system of emissions trading to manage GHGs; La mise en oeuvre des systemes de quotas d'emission echangeables dans la gestion des emissions de GES

    Energy Technology Data Exchange (ETDEWEB)

    Webster, A. [Sherbrooke Univ., PQ (Canada)

    2005-06-01

    The exact geographical location of greenhouse gas (GHG) emissions has no bearing on climate change. In this context the Kyoto Protocol recognizes mechanisms of flexibility for countries to attain their GHG emissions reductions. Emission trading takes advantage of this flexibility, allowing GHGs to be sold, traded, or stockpiled. An emission quota allows the owner of an energy facility to emit a certain amount of GHGs throughout the year. If this quota is not used, it can be stockpiled for the following year or it could be traded to another enterprise and owner. If the amount of emissions exceeds the initial quotas, facilities can adopt different strategies, such as reducing their GHG purchasing quotas from national enterprises that have reduced their emissions or purchase quotas from international markets. The initial allocation of quotas is an important political decision since it determines the initial distribution of the GHG reduction effort. The establishment of a quota system can contribute to economical competition and can be used to fulfill environmental objectives regarding energy source development. It is also the most effective way to minimize greenhouse gas emissions and the associated environmental impacts. This paper reviewed the regulations regarding the design of the quota system; how the ceiling of emission levels was determined; the criteria for allocating the quotas and the rules for the exchange of emission quotas. Canada and the European countries have expressed interest in this system of emissions trading. 7 refs.

  16. An emerging equilibrium in the EU emissions trading scheme

    International Nuclear Information System (INIS)

    Bredin, Don; Muckley, Cal

    2011-01-01

    The European Union's Emissions Trading Scheme (ETS) is the key policy instrument of the European Commission's Climate Change Program aimed at reducing greenhouse gas emissions to eight percent below 1990 levels by 2012. A critically important element of the EU ETS is the establishment of a market determined price for EU allowances. This article examines the extent to which several theoretically founded factors including, economic growth, energy prices and weather conditions determine the expected prices of the European Union CO 2 allowances during the 2005 through to the 2009 period. The novel aspect of our study is that we examine heavily traded futures instruments that have an expiry date in Phase 2 of the EU ETS. Our study adopts both static and recursive versions of the Johansen multivariate cointegration likelihood ratio test as well as a variation on this test with a view to controlling for time varying volatility effects. Our results are indicative of a new pricing regime emerging in Phase 2 and point to a maturing market driven by the fundamentals. These results are valuable both for traders of EU allowances and for those policy makers seeking to improve the design of the European Union ETS.

  17. Voluntary emission trading potential of Turkey

    International Nuclear Information System (INIS)

    Ari, İzzet

    2013-01-01

    Climate change is likely to cause serious market failures, and carbon trading as a market instrument can help correct its negative impacts. The global carbon markets established to combat climate change include regulatory and voluntary markets. Turkey cannot utilise regulatory carbon markets under the Kyoto Protocol. As a result of her unique position in the UNFCCC, some offsetting projects in Turkey have benefitted only voluntary emission trading for the reduction of GHG emissions. Due to on-going climate change negotiation under the UNFCCC, it seems that Turkey will not use the current regulatory carbon markets. Thus, Turkey should promote the use of and participation in voluntary carbon markets. In this article, emission reduction potential via energy efficiency, renewable energy and solid waste management, and corresponding offsetting of credits with their estimated prices is investigated for the period between 2013 and 2020. The emission reduction potential for energy efficiency, renewable energy and solid waste management projects are estimated at 403, 312 and 356 million tons of CO 2 equivalent emissions respectively, totalling 1,071 million tons of CO 2 equivalent. The total revenue of the carbon certificates are estimated in the range of 19,775–33,386 million US Dollars for the same period. -- Highlights: •Turkey has 1,071 million tons GHG emission reduction in three sectors for 2013–2020. •Turkey can only use voluntary emission trading for reduction of GHGs. •Total revenue estimation could be between 19,775 and 33,386 million US Dollars. •Turkey's economy and emissions have been rapidly growing. •Turkey can more easily reduce its emission by using voluntary emission trading

  18. Combining rate-based and cap-and-trade emissions policies

    International Nuclear Information System (INIS)

    Fischer, Carolyn

    2003-12-01

    Rate-based emissions policies (like tradable performance standards, TPS) fix average emissions intensity, while cap-and-trade (CAT) policies fix total emissions. This paper shows that unfettered trade between rate-based and cap-and-trade programs always raises combined emissions, except when product markets are related in particular ways. Gains from trade are fully passed on to consumers in the rate-based sector, resulting in more output and greater emissions allocations. We consider several policy options to offset the expansion, including a tax, an 'exchange rate' to adjust for relative permit values, output-based allocation (OBA) for the rate-based sector, and tightening the cap. A range of combinations of tighter allocations could improve situations in both sectors with trade while holding emissions constant

  19. Competitiveness and linking of emission trading systems

    Energy Technology Data Exchange (ETDEWEB)

    Hausotter, Tobias; Steuwer, Sibyl; Taenzler, Dennis [adelphi, Berlin (Germany)

    2011-01-15

    The establishment of emission trading systems raises concerns among industries regarding international competitive disadvantages for the industries under an emissions cap. This study aims to assess competitiveness exposure of industrial sectors and presents policy measures to address these concerns. Moreover, the study provides a comparison of different existing approaches to competitiveness concerns proposed by regional emission trading systems. (orig.)

  20. Canadian municipal carbon trading primer

    International Nuclear Information System (INIS)

    Seskus, A.

    2002-01-01

    The trading of greenhouse gas (GHG) emissions is being suggested as an effective economic way to meet Canada's Kyoto target. Emissions trading is a market-based instrument that can help achieve environmental improvements while using the market to absorb the economical and effective measures to achieve emissions reductions. Placing a value on emissions means that in order to minimize costs, companies will be motivated to apply the lowest-cost emission reductions possible for regulatory approval. The two main types of emissions trading that exist in Canada are the trading of emissions that lead to the formation of smog or acid rain, and the trading of greenhouse gas emissions that lead to climate change. Since carbon dioxide is the most prevalent GHG, making up approximately 75 per cent of Canadian GHG emissions, the trading of units of GHGs is often referred to as carbon trading. The impact that emissions trading will have on municipal operations was the focus of this primer. The trading of GHG involves buying and selling of allowances of GHGs between contracting parties, usually between one party that is short of GHG credits and another that has excess credits. The 3 common approaches to emissions trading include allowance trading (cap and trade), credit trading (baseline and credit), and a hybrid system which combines both credit and allowance trading systems. The issues that impact municipalities include the debate regarding who owns the credits from landfills, particularly if power is generated using landfill gas and the power is sold as green power. Other viable questions were also addressed, including who can claim emission reduction credits if a city implements energy efficiency projects, or fuel substitution programs. Also, will municipalities be allowed to trade internationally, for example, with municipalities in the United States, and how should they spend their money earned from selling credits. This report also presents highlights from 3 emissions

  1. Review Existing and Proposed Emissions Trading Systems

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2010-07-01

    This paper reviews key design features of mandatory emissions trading systems that had been established or were under consideration in 2010, with a particular focus on implications for the energy sector. Putting a price on greenhouse gas emissions is a cornerstone policy in climate change mitigation. To this end, many countries have implemented or are developing domestic emissions trading systems.

  2. Enforcement and Environmental Quality in a Decentralized Emission Trading System

    Energy Technology Data Exchange (ETDEWEB)

    D' Amato, Alessio (Univ. of Rome, ' Tor Vergata' , Rome (Italy)); Valentini, Edilio (Univ. G. D' Annunzio di Chieti-Pescara, DEST, Fac. di Economia, Pescara (Italy))

    2008-07-01

    This paper addresses the issue of whether the powers of monitoring compliance and allocating allowances under emissions trading within an economic union should be centralized or delegated to single states. To this end, we develop a two stage game played by two governments choosing allowances and monitoring effort to achieve full compliance, and their respective polluting industries. We show that cost advantage in favor of national states is not sufficient to justify decentralization. Nevertheless, cost differential in monitoring violations can imply lower emissions and greater welfare under a decentralized institutional setting than under a centralized one

  3. The coal question that emissions trading has not answered

    International Nuclear Information System (INIS)

    Pearse, Rebecca

    2016-01-01

    Can emissions trading assist with the task of placing a limit on coal production and consumption in Australia? This paper outlines a critical political economy perspective on coal and a flagship ‘market mechanism’ for emissions reduction. The prospects for an effective emissions trading scheme in coal-dominated economies are considered in light of its theoretical justifications as well as recent attempts to price carbon in Australia. Emissions trading is a weak instrument that does not address real-world failures of coal governance. At their theoretical best, carbon prices produce marginal changes to the cost structure of production. In practice, the Australian case demonstrates emissions trading is an attempt to displace the emissions reduction task away from coal, through compensation arrangements and offsetting. In light of the urgent need to rapidly reduce global emissions, direct regulation and democratisation of coal production and consumption should be flagship climate policy. - Highlights: • Emissions trading schemes (ETS) are weak instruments for placing a limit on coal. • Pre-existing failures of coal governance cannot be addressed by emissions trading. • Considerable transfers of public wealth to coal companies occurred as part of the Australian ETS. • Carbon offset arrangements spatially displace responsibility for reducing emissions away from coal.

  4. Implementation of a european directive establishing a negotiable CO2 emissions trading scheme

    International Nuclear Information System (INIS)

    Coussy, P.

    2003-01-01

    Approved on July 22, 2003, European Directive 87/2003/EC establishes a scheme for the trading of greenhouse gas emissions allowances. Before the market comes into effect on January 1, 2005, industrialists will have to account for a new financial asset in planning development strategy: the CO 2 allowance. Each Member State is currently developing a climate plan that includes the allocation of CO 2 emissions allowances to industrial installations. It will not be possible to exceed these allowances without incurring a financial penalty. (author)

  5. International Emissions Trading : Design and Political Acceptability

    NARCIS (Netherlands)

    Boom, Jan Tjeerd

    2006-01-01

    This thesis discusses the design and political acceptability of international emissions trading. It is shown that there are several designs options for emissions trading at the national level that have a different impact on output and thereby related factors such as employment and consumer prices.

  6. National Emissions Trading; Interim Report by the Committee on the Kyoto mechanisms

    International Nuclear Information System (INIS)

    2001-01-01

    By emissions trading is meant that operators eligible for emissions trading can trade in emission rights, which entitle the operator to greenhouse gas emissions. The domestic emissions trading in gases released into the atmosphere would be limited to domestic units and emissions only. Emissions trading does not reduce emissions. Emissions are reduced by investments and changes in lines of action. The role of the national emissions trading depends on the overall national climate programme. Emissions trading - especially if it is connected with quotas imposed on greenhouse gas emissions or with other quantitative restrictions - is a strong instrument of which there is no previous experience in Finland. Compared to mere emission quotas, emissions trading might, however, offer a flexible and cost-efficient means of meeting the emission targets. The Committee thinks that the majority of - and most important - points speak in favour of the option that, if emissions trading is to be taken among the methodology of the climate policy, it is more profitable and more cost-efficient for Finland to use emissions trading as one instrument included in the climate policy together with other countries. The emissions trading area should also include countries that have lower costs of reducing emissions than those of Finland. The Committee does not propose that emissions trading between companies be initiated so as to be applicable in Finland only. If the EU Member States and the Community ratify the Kyoto Protocol and if emissions trading within the EU area begins, Finland will have to consider joining the trading system. If no decisions are made on the EU trading system by the year 2005, or if Finland cannot join it due to an implementation method that would be disadvantageous to Finland, Finland will have to consider joining the emissions trading system especially on the regional level covering the Nordic countries and the Baltic Sea States. Before joining any emissions trading

  7. National Emissions Trading; Interim Report by the Committee on the Kyoto mechanisms

    International Nuclear Information System (INIS)

    2001-01-01

    By emissions trading is meant that operators eligible for emissions trading can trade in emission rights, which entitle the operator to greenhouse gas emissions. The domestic emissions trading in gases released into the atmosphere would be limited to domestic units and emissions only. Emissions trading does not reduce emissions. Emissions are reduced by investments and changes in lines of action. The role of the national emissions trading depends on the overall national climate programme. Emissions trading - especially if it is connected with quotas imposed on greenhouse gas emissions or with other quantitative restrictions - is a strong instrument of which there is no previous experience in Finland. Compared to mere emission quotas, emissions trading might, however, offer a flexible and cost-efficient means of meeting the emission targets. The Committee thinks that the majority of - and most important- points speak in favour of the option that, i emissions trading is to be taken among the methodology of the climate policy, it is more profitable and more cost-efficient for Finland to use emissions trading as one instrument included in the climate policy together with other countries. The emissions trading area should also include countries that have lower costs of reducing emissions than those of Finland. The Committee does not propose that emissions trading between companies be initiated so as to be applicable in Finland only. If the EU Member States and the Community ratify the Kyoto Protocol and if emissions trading within the EU area begins, Finland will have to consider joining the trading system. If no decisions are made on the EU trading system by the year 2005, or if Finland cannot join it due to an implementation method that would be disadvantageous to Finland, Finland will have to consider joining the emissions trading system especially on the regional level covering the Nordic countries and the Baltic Sea States. Before joining any emissions trading

  8. Emissions trading stalls

    International Nuclear Information System (INIS)

    Milne, R.

    1998-01-01

    A brief article examines prospects for emission trading of greenhouse gas emissions in the UK. Topics covered include a checklist of principles for any trading system, plans for oil companies to do it internally, the possibility for carbon sinks as well as emissions and developments around the world. (UK) alt. Directly northward of the Sigsbee Escarpment, there is a relatively thin, low-velocity zone known as a ''gumbo zone''. Here two other pressure compartments are proposed. The origin of them is two-fold. First, initial sedimentation consists of pelagic clay draped over oceanic and transitional crust. Later, as the continental margin progrades nearer sedimentation becomes hemipelagic and coarser as gravity-driven sediments predominate. Secondly, as the salt wedge overrides a given spot of the basement, it is possible to develop a shear couple between the migrating salt and the stationary basement. The resultant shear (the site of the next strike-slip fault) may change pressures beneath the salt such that the shear may create two pressure compartments. The differences between the two compartments may be accentuated by lithologic changes caused by depositional mechanisms. (author)

  9. CO2 emission trade from a fiscal perspective

    International Nuclear Information System (INIS)

    Klaassen, F.A.H.; Derksen, R.T.; Keijel, J.J.C.

    2004-06-01

    The report gives answers to questions as 'are CO2 emission permits assets or supplies?'; how to deal with forward contracts and options in CO2 emission permits 'fiscal-wise'; and 'which are the consequences of CO2 emissions trade for the rebate of pre-taxes?' Als attention is paid to trading system for NOx emission [nl

  10. The EU Greenhouse Gas Emissions Trading Scheme

    NARCIS (Netherlands)

    Woerdman, Edwin; Woerdman, Edwin; Roggenkamp, Martha; Holwerda, Marijn

    2015-01-01

    This chapter explains how greenhouse gas emissions trading works, provides the essentials of the Directive on the European Union Emissions Trading Scheme (EU ETS) and summarizes the main implementation problems of the EU ETS. In addition, a law and economics approach is used to discuss the dilemmas

  11. An emissions trading regime for Canada

    International Nuclear Information System (INIS)

    Smith, S.L.

    2001-01-01

    In 1998, over twelve papers were published on emissions trading regimes in Canada by the National Round Table on the Environment and the Economy (NRTEE), a federal government agency whose members represent stakeholders as varied as business, environmental groups, academics, aboriginal groups and others. One of the recommendations that emerged was for the computer modelling of the possibilities that had been identified for a domestic trading regime in Canada for greenhouse gases. It is unclear whether the modelling was ever performed as the file was taken over by the Finance Department under the umbrella of a special emission trading table that examined Canada's commitment under the Kyoto Protocol. The author examined questions pertaining to whether a domestic trading regime is essential, and what its characteristics should be in case it was deemed essential or advisable to have one. The upstream versus downstream application was looked at, as well as grand-fathering versus auction. Provincial issues were then addressed, followed by meshing with a credit system. International systems were reviewed. Early action was discussed, whereby an emitter seeks credit for action taken toward reductions since the original reference year of 1990. The case of emitters having bought or sold permits since the original reference years will also want those trades recognized under a trading regime. The author indicated that it seems probable that an emission trading system will eventually be implemented and that a debate on the issue should be initiated early

  12. Carbon Countdown. Emissions trading to combat climate change

    International Nuclear Information System (INIS)

    2006-06-01

    The European Emission Trading Scheme (EU ETS) is a crucial cornerstone of climate change policy in Europe and the first international trading system for carbon dioxide (CO2) emissions in the world. The ETS is a major part of the solution to one of the biggest challenges humanity is facing: global warming. A WWF review of Phase 1 of the European Emission Trading Scheme and recommendations to improve its environmental effectiveness and economic efficiency for Phase 2

  13. Coordination of the EU's emissions trading, energy taxation and subsidies for energy production. Interim Report by the Working Group

    International Nuclear Information System (INIS)

    2004-01-01

    The Working Group was to make preparations for the coordination of emissions trading in the European Union, energy taxation and energy production subsidies. It was supposed to issue an interim report on the role of energy taxation by 15 December 2003. In its interim report, the Working Group examined the present energy taxation scheme and the needs for its development upon the start-up of EU-wide emissions trading in 2005. The aim has been to recognise the immediate needs for amending energy taxation and energy tax subsidies in the near future while taking account of the outlines set out in the Government Programme. From the climate policy perspective, emissions trading is an efficient means of steering, because the commitment set for the emissions trading sector can be met by means of it. At the first stage, the EU's emissions trading will concern carbon dioxide emissions only, and in the future probably also other greenhouse gas emissions mentioned in the Kyoto Protocol. Its steering effect does not extend to other emissions, such as acidifying emissions. Other measures will be required for curbing them. Emissions trading is not a sufficient instrument for energy policy, although it partly directs development in a direction that is favourable for energy policy targets. On top of that, the most important steering mechanism of emissions trading, the price of an emission allowance, is beyond the reach of Finnish energy policy. It is determined on the EU-wide emission allowances market. The current energy taxation and energy tax subsidies safeguard the position of renewable energy sources in the circumstances of emissions trading. The competitiveness of domestic fuels, too, can be partly secured with current taxes. In the energy production of communities and industry, energy wood often replaces peat. i.e. two domestic and local fuels are competing against one another. In condensing power production peat is clearly losing more of its competitive edge the higher the

  14. The liability rules under international GHG emissions trading

    International Nuclear Information System (INIS)

    Zhong Xiang Zhang

    2001-01-01

    Article 17 of the Kyoto Protocol authorizes emissions trading, but the rules governing emissions trading have been deferred to subsequent conferences. In designing and implementing an international greenhouse gas (GHG) emissions trading scheme, assigning liability rules has been considered to be one of the most challenging issues. In general, a seller-beware liability works well in a strong enforcement environment. In the Kyoto Protocol, however, it may not always work. By contrast, a buyer-beware liability could be an effective deterrent to non-compliance, but the costs of imposing it are expected to be very high. To strike a middle ground, we suggest a combination of preventive measures with strong but feasible end-of-period punishments to ensure compliance with the Kyoto emissions commitments. Such measures aim to maximize efficiency gains from emissions trading and at the same time, to minimize over-selling risks. (author)

  15. Bi-lateral CO_2 emissions embodied in Australia–China trade

    International Nuclear Information System (INIS)

    Jayanthakumaran, Kankesu; Liu, Ying

    2016-01-01

    This paper quantifies the CO_2 emissions embodied in bi-lateral trade between Australia and China using a sectoral input–output model. The results revealed: (1) that China performs lower than Australia in clean technology in the primary, manufacturing, energy sectors due to their overuse of coal and inefficient sectoral production processes, and (2) that China had a 30.94 Mt surplus of bi-lateral CO_2 emissions in 2010–2011 and (3) overall global emissions were reduced by 20.19 Mt through Australia–China trade in 2010–2011. The result indicates that the greater the energy efficient a country among the trading partners the lower will be the overall global CO_2 emissions. Global emissions decreased mainly because China consumed Australian primary products rather than producing them. Australia is an energy efficient producer of primary products relative to China. The bilateral trade compositions and trade volume played an important role in lowering global emissions and therefore one can view proposed China Australia Free trade Agreement positively in reducing global emissions. However, for the sustainable development, China should strengthen clean energy use and both countries should adopt measures to create an emission trading scheme in order to avoid protectionism in the form of future border price adjustments. - Highlights: •Primary (Australia) and manufactured (China) exports are a unique combination. •Quantifies CO_2 emissions embodied in bi-lateral trade between Australia and China. •Global emissions reduce because China consume Australian primary. •Australia is energy efficient producer of primary products relative to China. •Results support more trade with appropriate trade composition and volume.

  16. Emission trading in Europe with an exchange rate

    International Nuclear Information System (INIS)

    Klassen, G.A.J.; Amann, M.; Foersund, F.R.

    1994-01-01

    The analytical and empirical properties of a new method for emission trading according to a fixed exchange rate are explored. The exchange rate is based on the ratios of the marginal costs of abatement in the optimal solution in order to account for the impact of the location of emission sources on the deposition. It is shown that, generally, this system will not achieve the optimal solution and does not guarantee that environmental deposition constraints are not violated, although total abatement costs are always reduced. A routine was developed to mimic trading as a bilateral, sequential process, subject to an exchange rate. Use has been made of an adapted version of the optimization module in the RAINS (REgional Acidification INformation and Simulation) model. In the example used, results for SO 2 emissions in Europe show that, starting from a uniform reduction, exchange-rate trading achieves higher cost savings than one-to-one trading, without achieving the cost minimum. Sulfur deposition targets are not violated since the initial emission allocation overfulfilled targets at many places. The results are sensitive to: pre-trade emission levels, the transaction costs, the availability of information on potential cost savings and assumptions made on the behavior of trading partners. 6 figs., 3 tabs., 28 refs

  17. Emission Trading - Effects of the EU directive; Emission Trading - Auswirkungen der EG-Richtlinie

    Energy Technology Data Exchange (ETDEWEB)

    Meller, E. [Verband der Elektrizitaetswirtschaft -VDEW- e.V., Berlin (Germany)

    2004-07-01

    The EU-Directive on 'Establishing a Scheme for Greenhouse Gas Emission Allowance Trading within the Community' came into force after it had been published in the Official Journal of the EU. The electricity industry has pursued carefully and constructively the development of this Directive. A number of suggestions were taken into consideration. Currently, the focus - in connection with the adaptation by national legislation - is on the development of a national allocation plan. (orig.) [German] Knapp zwei Jahre nach der Vorlage eines Richtlinien-Entwurfs durch die Europaeische Kommission ist die Richtlinie zur 'Einfuehrung eines EU-weiten Handels mit Treibhausgas-Emissionszertifikaten' in Kraft getreten. Im Mittelpunkt der Umsetzung der Richtlinie in nationales Recht steht die Erstellung eines Nationalen Allokationsplans, dem Kernelement des Zertifikatehandels. Fuer die Stromwirtschaft relevante Aspekte werden eroertert. (orig.)

  18. Emissions trading and the negotiation of pollution credits

    Energy Technology Data Exchange (ETDEWEB)

    Black A.J.

    2000-07-01

    A new market is emerging based on greenhouse gas emissions and the trading of pollution credits. While the structure of the primary market is being planned, many businesses are already positioning themselves in the nascent secondary market. This trend is based on corporate 'realpolitik' a recognition that tougher environmental regulation is inevitable. But the development of an emissions trading regime is lagging behind commercial reality. This article examines the state of play in the development of a market for carbon emissions trading.

  19. Transportation and Greenhouse Gas Emissions Trading. Final Technical Report

    Energy Technology Data Exchange (ETDEWEB)

    Steve Winkelman; Tim Hargrave; Christine Vanderlan

    1999-10-01

    -specific policies, they recommend (in addition to the land use policies mentioned above), that they combine an upstream trading system with a carbon efficiency standard similar to the current CAFE standard. Under this approach a fuel price signal would be complemented by incentives for manufacturers to produce more carbon efficient vehicles. To prevent vehicle manufacturers from being forced to pay more than other sectors for reducing GHG emissions, they recommend that the vehicle makers be allowed to pay a cash penalty equal to the market price of allowances in lieu of meeting carbon efficiency requirements.

  20. Intertemporal Permit Trading for the Control of Greenhouse Gas Emissions

    International Nuclear Information System (INIS)

    Leiby, P.; Rubin, J.

    2001-01-01

    This paper integrates two themes in the intertemporal permit literature through the construction of an intertemporal banking system for a pollutant that creates both stock and flow damages. A permit banking system for the special case of a pollutant that only causes stock damages is also developed. This latter, simpler case corresponds roughly to the greenhouse gas emission reduction regime proposed by the U.S. Department of State as a means of fulfilling the U.S. commitment to the Framework Convention on Climate Change. This paper shows that environmental regulators can achieve the socially optimal level of emissions and output through time by setting the correct total sum of allowable emissions, and specifying the correct intertemporal trading ratio for banking and borrowing. For the case of greenhouse gases, we show that the optimal growth rate of permit prices, and therefore the optimal intertemporal trading rate, has the closed-form solution equal to the ratio of current marginal stock damages to the discounted future value of marginal stock damages less the decay rate of emissions in the atmosphere. Given a non-optimal negotiated emission path we then derive a permit banking system that has the potential to lower net social costs by adjusting the intertemporal trading ratio taking into account the behavior of private agents. We use a simple numerical simulation model to illustrate the potential gains from various possible banking systems. 24 refs

  1. Emissions trading for climate policy - US and European perspectives

    Energy Technology Data Exchange (ETDEWEB)

    Bernd Hansjuergens (ed.) [Martin Luther-Universitaet Halle-Wittenburg (Germany)

    2005-07-01

    The 1997 Kyoto Conference introduced emissions trading as a new policy instrument for climate protection. Bringing together scholars in the fields of economics, political science and law, this book provides a description, analysis and evaluation of different aspects of emissions trading as an instrument to control greenhouse gases. The authors analyse theoretical aspects of regulatory instruments for climate policy, provide an overview of US experience with market-based instruments, draw lessons from existing trading schemes for the control of greenhouse gases, and discuss options for emissions trading in climate policy. They also highlight the background of climate policy and instrument choice in the US and Europe and of the emerging new systems in Europe, particularly the new EU's directive for a CO{sub 2} emissions trading system. 8 figs., 15 tabs.

  2. Influence of trade on national CO2 emissions

    International Nuclear Information System (INIS)

    Munksgaard, Jesper; Pade, Lise-Lotte; Minx, Jan; Lenzen, Manfred

    2005-01-01

    International trade has an impact on national CO 2 emissions and consequently on the ability to fulfil national CO 2 reduction targets. Through goods and services traded in a globally interdependent world, the consumption in each country is linked to greenhouse gas emissions in other countries. It has been argued that in order to achieve equitable reduction targets, international trade has to be taken into account when assessing nations' responsibility for abating climate change. Especially for open economies such as Denmark, greenhouse gases embodied in internationally traded commodities can have a considerable influence on the national 'greenhouse gas responsibility'. By using input-output modelling, we analyse the influence from international trade on national CO 2 emissions. The aim is to show that trade is the key to define CO 2 responsibility on a macroeconomic level and that imports should be founded in a multi-region model approach. Finally, the paper concludes on the need to consider the impact from foreign trade when negotiating reduction targets and base line scenarios. (Author)

  3. Market Analysis and Risk Management of EU Emissions Trading - MARMET

    International Nuclear Information System (INIS)

    Ollikainen, M.; Aatola, P.; Ollikka, K.; Kumpulainen, A.; Pohjola, T.; Lappalainen, E.

    2007-01-01

    The first period of the EU Emissions Trading Scheme (EU ETS) commenced on January 1st 2005. It implies new challenges to companies included in the scheme. A central challenge is the uncertainty related to the markets. In order to manage their risks and profitability companies need to be able to estimate future price developments of emission allowances. The University of Helsinki is conducting a research project in cooperation with the Helsinki University of Technology that will provide necessary information for analyzing European Union emission allowance (EUA) markets and create risk management competence. The objectives of the research project are (1) to develop a price estimation model for EU emission allowances and (2) to develop risk management competence related to EU ETS. With the price estimation model the short-term price developments of EUAs can be estimated. By utilizing the model companies can reduce uncertainties related to the markets. The project also delivers a general risk management model for EU ETS that aims at improving competitiveness of companies. (orig.)

  4. Emissions trading and the climate change levy

    International Nuclear Information System (INIS)

    Connett, Richard

    2000-01-01

    This paper discusses the flexible mechanisms established in the Kyoto Protocol of the UN Framework on Climate Change focussing on the mechanism whereby countries achieving their target for reducing the emissions of greenhouse gases can trade their excess to countries having difficulty achieving their target. UK measures to meet their commitment, the UK government's proposed climate change levy on the use of energy, negotiated agreements, emissions trading, and the nature, supply and trading of permits are examined. Compatibility with international agreements and the Integrated Pollution Prevention and Control (IPPC) Directive, monitoring, and penalties are considered

  5. Emission allowance trading under the Clean Air Act Amendments: An incentive mechanism for the adoption of Clean Coal Technologies

    International Nuclear Information System (INIS)

    South, D.W.; McDermott, K.A.

    1993-01-01

    Title IV of the Clean Air Act Amendments of 1990 (P.L. 101-549) uses tradeable SO 2 allowances as a means of reducing acidic emissions from the electricity generating industry. The use of emission allowances generates two important results; first, utilities are given the flexibility to choose their optimal (least cost) compliance strategies and second, the use of emission allowances creates greater incentives for the development and commercialization of innovative emissions control technology. Clean Coal Technologies (CCTs) are able to generate electricity more efficiently, use a wide variety of coal grades and types, and dramatically reduce emissions of SO 2 , NO x , CO 2 , and PM per kWh. However, development and adoption of the technology is limited by a variety of regulatory and technological risks. The use of SO 2 emission allowances may be able to provide incentives for utility (and nonutility) adoption of this innovative technology. Emission allowances permit the utility to minimize costs on a systemwide basis and provides rewards for addition emission reductions. As CCTs are a more efficient and low emitting source of electricity, the development and implementation of this technology is desirable. This paper will explore the relationship between the incentives created by the SO 2 allowance market and CCT development. Regulatory hindrances and boons for the allowance market shall also be identified to analyze how market development, state mandates, and incentive regulation will effect the ability of allowances to prompt CCT adoption

  6. Implementing the Kyoto protocol : why JI and CDM show more promise than international emissions trading

    NARCIS (Netherlands)

    Woerdman, E.

    The Kyoto protocol allows developed countries to achieve cost-effective greenhouse gas emission reductions abroad by means of international emissions trading (IET), joint implementation (JI) and the clean development mechanism (CDM). The article argues that JI and CDM projects will be more

  7. Frameworks for comparing emissions associated with production, consumption, and international trade.

    Science.gov (United States)

    Kanemoto, Keiichiro; Lenzen, Manfred; Peters, Glen P; Moran, Daniel D; Geschke, Arne

    2012-01-03

    While the problem of climate change is being perceived as increasingly urgent, decision-makers struggle to agree on the distribution of responsibility across countries. In particular, representatives from countries hosting emissions-intensive exporting industries have argued that the importers of emissions-intensive goods should bear the responsibility, and ensuing penalties. Indeed, international trade and carbon leakage appear to play an increasingly important role in the carbon emissions debate. However, definitions of quantities describing the embodiment of carbon emissions in internationally traded products, and their measurement, have to be sufficiently robust before being able to underpin global policy. In this paper we critically examine a number of emissions accounting concepts, examine whether the ensuing carbon balances are compatible with monetary trade balances, discuss their different interpretations, and highlight implications for policy. In particular, we compare the emissions embodied in bilateral trade (EEBT) method which considers total trade flows with domestic emission intensities, with the multi-regional input-output (MRIO) method which considers trade only into final consumption with global emission intensities. If consumption-based emissions of different countries were to be compared, we would suggest an MRIO approach because of the global emissions coverage inherent in this method. If trade-adjusted emission inventories were to be compared, we would suggest an EEBT approach due to the consistency with a monetary trade balance.

  8. Suitability of non-energy GHGs for emissions trading

    International Nuclear Information System (INIS)

    Haites, E.; Proestos, A.

    2000-01-01

    This paper assesses the suitability of different sources of non-energy greenhouse gases for emissions trading. Different forms of emissions trading are defined and criteria for determining whether a source is suitable for emissions trading are proposed. The suitability for emissions trading is assessed for: methane (CH4) from oil and gas production; CH4 from coal mines; CH4 from landfills; CH4 from wastewater treatment; CH4 from enteric fermentation; CH4 from livestock manure, nitrous oxide (N2O) from adipic acid production; N2O from fertilizer use; N2O from nitric acid production, carbon dioxide (CO2) and perfluorocarbons (PFCs) from aluminum smelting; sulphur hexafluoride (SF6) from magnesium smelting and die casting; HFCs from HCFC production, other uses of SF6, PFCs and hydrofluorocarbons (HFCs); CO2 from ammonia production; lime and cement production, and iron ore reduction

  9. EU-Type Carbon Emissions Trade and the Distributional Impact of Overlapping Emissions Taxes

    OpenAIRE

    Thomas Eichner; Rüdiger Pethig

    2009-01-01

    The European Union fulfills its emissions reductions commitments by means of an emissions trading scheme covering some part of each member state’s economy and by national emissions control in the rest of their economies. The member states also levy energy/emissions taxes overlapping with the trading scheme. Restricting our focus on cost-effective policies, this paper investigates the distributive consequences of increasing the overlapping emissions tax that is uniform across countries. For ...

  10. NOx emissions trading: Precursor to future growth

    International Nuclear Information System (INIS)

    Colella, A.

    1993-01-01

    Title I of the Clean Air Act Amendments (CAAA) of 1990 specified the framework for enhanced regulation in ozone non-attainment areas with increasingly stringent requirements dependent on the area classification - marginal, moderate, serious, severe or extreme. Before the CAAA were passed, only volatile organic compounds (VOCs) were regulated as precursors to ozone formation, Now, by statute, emissions of nitrogen oxides (NO x ) are also regulated as ozone precursor. Under the CAAA, new sources and modifications of existing sources are subject to Title I permitting requirements in ozone non-attainment areas if emissions of NO x and/or VOCs exceed certain triggering levels. For many new or facility expansion projects, especially power generation, the NO x thresholds are easily exceeded thus triggering Title I non-attainment new source review which requires application of control technology to new equipment which results in the Lowest Achievable Emission Rate (LAER), and securing emission reductions either internally or from other major sources to offset the increased emission from the new or modified source. The selection of a LAER technology is generally within an applicant's control. An applicant can determine up-front the engineering and cost considerations associated with LAER technology is assessing a project's viability. However, without a clear source of emission offsets of a means to secure them, assessing project viability could be difficult if not impossible. No available emission offsets means no industrial growth. For sources of NO x undergoing Title I new source review, a regional or state banking system that facilitates NO x emissions trading is needed as a precursor to future growth. This paper presents an overview of EPA's Emissions Trading Policy and Title I new source review offset provisions. Industry's concerns about emissions trading and recommendations for future trading programs are presented

  11. Greenhouse gas emissions trading and project-based mechanisms. Proceedings - CATEP

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2004-01-01

    Greenhouse gas emissions trading and project-based mechanisms for greenhouse gas reduction are emerging market-based instruments for climate change policy. This book presents a selection of papers from an international workshop co-sponsored by the OECD and Concerted Action on Tradeable Emissions Permits (CATEP), to discuss key research and policy issues relating to the design and implementation of these instruments. The papers cover the experience of developing and transition countries with greenhouse gas emissions trading and project-based mechanisms. In addition, the papers examine the use of tradeable permits in policy mixes and harmonisation of emissions trading schemes, as well as transition issues relating to greenhouse gas emissions trading markets.

  12. Trading CO2 emission; Verhandelbaarheid van CO2-emissies

    Energy Technology Data Exchange (ETDEWEB)

    De Waal, J.F.; Looijenga, A.; Moor, R.; Wissema, E.W.J. [Afdeling Energie, Ministerie van VROM, The Hague (Netherlands)

    2000-06-01

    Systems for CO2-emission trading can take many shapes as developments in Europe show. European developments for emission trading tend to comprehend cap and-trade systems for large emission sources. In the Netherlands a different policy is in preparation. A trading system for sheltered sectors with an option to buy reductions from exposed sectors will be further developed by a Commission, appointed by the minister of environment. Exposed sectors are committed to belong to the top of the world on the area of energy-efficiency. The authors point out that a cap on the distribution of energy carriers natural gas, electricity and fuel seems to be an interesting option to shape the trade scheme. A cap on the distribution of electricity is desirable, but not easy to implement. The possible success of the system depends partly on an experiment with emission reductions. 10 refs.

  13. Trader types and volatility of emission allowance prices. Evidence from EU ETS Phase I

    International Nuclear Information System (INIS)

    Balietti, Anca Claudia

    2016-01-01

    This paper studies the relation between the trading activity of market participants and the volatility of the European Emission Allowance price during Phase I of the European Union Emission Trading System (EU ETS). We focus on the contrasting roles of different trader types. We find evidence of a positive and significant trading activity–volatility relation, which appears to be stronger when accounting for trader type. The positive relation can be mainly attributed to energy providers. In contrast, industrial companies seem to have traded more frequently when volatility levels were lower. Finally, the non-liable players, represented by financial intermediaries, appear to have acted as a flexible counterparty, trading more with the energy sector when volatility was higher, and more with the industrial firms when volatility was lower. We discuss possible explanations for these contrasted positions. Understanding the trading activity–volatility link is relevant for evaluating the efficiency of the EU ETS. Although the relation is generally positive, many players remained often inactive and traded mostly when volatility levels were lower. Policies targeting the engagement of less active players could lead to a smoother incorporation of information into prices and to an increase in market efficiency. - Highlights: • We study the permit price volatility–trading activity link in the EU ETS Phase I. • We focus on the contrasting roles of different market players. • We show that the relation was overall positive, mainly due to energy providers. • Many other players remained inactive and traded more when volatility was lower. • Policies for the engagement of less active traders could increase market efficiency.

  14. Per capita emissions of greenhouse gases and international trade

    International Nuclear Information System (INIS)

    Karman, D.; Baptiste, S.

    1994-01-01

    The role played by international trade in Canada's emissions of greenhouse gases is investigated. Data used in the study include Environment Canada greenhouse gas emission estimates for 1990, a Statistics Canada input-output model linking greenhouse gas emissions to economic activity in different sectors, and monetary statistics on imports and exports. Subject to some simplifying assumptions, it is estimated that nearly 20% of Canada's greenhouse gas emissions can be attributed to the production of commodities destined for export to other countries. If the same greenhouse gas emission intensities are assumed for Canada's imports, the greenhouse gas emissions due to Canada's net trade is nearly 7% of the 660 megatonnes of CO 2 equivalent emissions for 1990. Commodities from natural resource exploitation head the list of greenhouse gas emissions attributed to international trade, as expected from their large export volumes and large greenhouse gas emission intensities. 4 refs., 1 fig

  15. Preparing for the emissions trading game

    International Nuclear Information System (INIS)

    Anon.

    2001-01-01

    Although the deadline (1 April 2001) for the introduction of the climate change levy (or UK greenhouse gas emissions trading scheme) is near, it is difficult to assess the likely impact of the legislation since some of the architecture and much of the detail have yet to be revealed. Meanwhile, there is a growing fear that emissions trading may work against the sectoral energy efficiency agreements and the risks and costs for individual companies are not clear. The views of the CBI are discussed in detail; it is apparently concerned that the DETR's proposals are incomplete in a number of respects and these are discussed. The subjects of grandfathering, outsourcing, electricity generation and plant closures receive special attention. Other aspects discussed are legal issues, sanctions and liability, trading and risks. Tim Denne of Oxera doubts that the UK scheme will achieve the hoped for level of trading. The scheme is likely to be a subject of boardroom debate for several years to come

  16. 75 FR 69909 - Approval and Promulgation of Implementation Plans; Texas; Emissions Banking and Trading of...

    Science.gov (United States)

    2010-11-16

    ... ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA-R06-OAR-2005-TX-0012; FRL-9226-3] Approval and Promulgation of Implementation Plans; Texas; Emissions Banking and Trading of Allowances Program AGENCY... four revisions to the Texas State Implementation Plan (SIP) that create and amend the Emissions Banking...

  17. An optimal control model for reducing and trading of carbon emissions

    Science.gov (United States)

    Guo, Huaying; Liang, Jin

    2016-03-01

    A stochastic optimal control model of reducing and trading for carbon emissions is established in this paper. With considerations of reducing the carbon emission growth and the price of the allowances in the market, an optimal policy is searched to have the minimum total costs to achieve the agreement of emission reduction targets. The model turns to a two-dimension HJB equation problem. By the methods of reducing dimension and Cole-Hopf transformation, a semi-closed form solution of the corresponding HJB problem under some assumptions is obtained. For more general cases, the numerical calculations, analysis and comparisons are presented.

  18. Sectoral and regional expansion of emissions trading

    Energy Technology Data Exchange (ETDEWEB)

    Boehringer, Christoph; Bouwe, Dijkstra; Rosendahl, Knut Einar

    2011-07-01

    We consider an international emissions trading scheme with partial sectoral and regional coverage. Sectoral and regional expansion of the trading scheme is beneficial in aggregate, but not necessarily for individual countries. We simulate international CO{sub 2} emission quota markets using marginal abatement cost functions and the Copenhagen 2020 climate policy targets for selected countries that strategically allocate emissions in a bid to manipulate the quota price. Quota exporters and importers generally have conflicting interests about admitting more countries to the trading coalition, and our results indicate that some countries may lose substantially when the coalition expands in terms of new countries. For a given coalition, expanding sectoral coverage makes most countries better off, but some countries (notably the USA and Russia) may lose out due to loss of strategic advantages. In general, exporters tend to have stronger strategic power than importers.(Author)

  19. Impact of trade in emission reduction credits on solar projects

    International Nuclear Information System (INIS)

    Kulkarni, P.

    1993-01-01

    Since the amendment of the Clean Air Act in 1990, the possibility of trading in Emission Reduction Credits has been looked upon as a strategy for improving the economic feasibility of solar projects. This paper discusses developments towards such a market and reviews current and proposed emission trading practices. The paper analyzes how the current characteristics of the market help or hinder the trading of credits generated by solar projects, and suggests possible solutions. Emission credits from four different solar projects and their trading potentials are presented

  20. Implications of CO2 Emissions Trading for Short-run Electricity Outcomes in Northwest Europe

    International Nuclear Information System (INIS)

    Chen, Y.; Sijm, J.P.M.; Hobbs, B.F.; Lise, W.

    2008-02-01

    We examine the short-run implications of CO2 trading for power production, prices, emissions, and generator profits in northwest Europe in 2005. Simulation results from a transmission-constrained oligopoly model are compared with theoretical analyses to quantify price increases and windfall profits earned by generators. The analyses indicate that the rates at which CO2 costs are passed through to wholesale prices are affected by market competitiveness, merit order changes, and elasticities of demand and supply. Emissions trading results in large windfall profits, much but not all of which is due to free allocation of allowances. Profits also increase for some generators because their generation mix has low emissions, and so they benefit from electricity price increases. Most emission reductions appear to be due to demand response, not generation redispatch

  1. Implications of CO2 Emissions Trading for Short-run Electricity Outcomes in Northwest Europe

    Energy Technology Data Exchange (ETDEWEB)

    Chen, Y. [School of Social Sciences, Humanities, and Arts and School of Engineering, Sierra Nevada Research Institute, University of California, Merced, 5200 N. Lake Rd., Merced, CA 95343 (United States); Sijm, J.P.M. [Policy Studies Unit, Energy Research Centre of the Netherlands ECN, P.O. Box 37154, 1020 Amsterdam (Netherlands); Hobbs, B.F. [Department of Geography and Environmental Engineering, The Johns Hopkins University, 3400 N. Charles St, Ames Hall, Baltimore, MD 21218 (United States); Lise, W. [IBS Research and Consultancy, Aga Hamami Caddesi, Aga Han 17/6, Cihangir, 34433 Beyoglu, Istanbul (Turkey)

    2008-02-15

    We examine the short-run implications of CO2 trading for power production, prices, emissions, and generator profits in northwest Europe in 2005. Simulation results from a transmission-constrained oligopoly model are compared with theoretical analyses to quantify price increases and windfall profits earned by generators. The analyses indicate that the rates at which CO2 costs are passed through to wholesale prices are affected by market competitiveness, merit order changes, and elasticities of demand and supply. Emissions trading results in large windfall profits, much but not all of which is due to free allocation of allowances. Profits also increase for some generators because their generation mix has low emissions, and so they benefit from electricity price increases. Most emission reductions appear to be due to demand response, not generation redispatch.

  2. Emissions trading with and without a cap

    International Nuclear Information System (INIS)

    Nentjes, A.; Boom, J.T.

    2000-01-01

    The authors try to reduce the confusion about all the proposals for the design of flexibility mechanisms with respect to the Kyoto Protocol and following Conventions of Parties (CoP) by sketching consistent views of International Emission Trading (IET) and Joint Implementation (JI). It is argued that environmentalists should change their views since it is feasible to design international emission trading in a way that should make it the favourite instrument of environmental organizations

  3. Growth in emission transfers via international trade from 1990 to 2008.

    Science.gov (United States)

    Peters, Glen P; Minx, Jan C; Weber, Christopher L; Edenhofer, Ottmar

    2011-05-24

    Despite the emergence of regional climate policies, growth in global CO(2) emissions has remained strong. From 1990 to 2008 CO(2) emissions in developed countries (defined as countries with emission-reduction commitments in the Kyoto Protocol, Annex B) have stabilized, but emissions in developing countries (non-Annex B) have doubled. Some studies suggest that the stabilization of emissions in developed countries was partially because of growing imports from developing countries. To quantify the growth in emission transfers via international trade, we developed a trade-linked global database for CO(2) emissions covering 113 countries and 57 economic sectors from 1990 to 2008. We find that the emissions from the production of traded goods and services have increased from 4.3 Gt CO(2) in 1990 (20% of global emissions) to 7.8 Gt CO(2) in 2008 (26%). Most developed countries have increased their consumption-based emissions faster than their territorial emissions, and non-energy-intensive manufacturing had a key role in the emission transfers. The net emission transfers via international trade from developing to developed countries increased from 0.4 Gt CO(2) in 1990 to 1.6 Gt CO(2) in 2008, which exceeds the Kyoto Protocol emission reductions. Our results indicate that international trade is a significant factor in explaining the change in emissions in many countries, from both a production and consumption perspective. We suggest that countries monitor emission transfers via international trade, in addition to territorial emissions, to ensure progress toward stabilization of global greenhouse gas emissions.

  4. Emission trading and Kyoto's protocol: discussions concerning rules and international coordination

    International Nuclear Information System (INIS)

    Baron, R.

    2000-01-01

    The Kyoto Protocol of the Climate Convention introduced the possibility to trade greenhouse gas emission reductions among industrialized countries, as a means to reduce the total cost of achieving the agreed emission goals. The rules for this international co-ordination regime are still debated, even if its principle is generally agreed. This article, written before the negotiation in the Hague, summarizes how the notion of emission trading made its way in the Framework Convention on Climate Change. The authors show what economic gains could realistically be expected from emission trading, based on macro-economic modelling results and a simulation of trading in the conditions of the Kyoto Protocol. They stress the critical contribution that emission trading could make, provided that the Protocol's environmental basis is not undermined. In the end, the negotiation collapsed over this issue. Beyond this near-term obstacle, the international emission trading system represents a significant progress towards an efficient resolution of man-made global climate change. (author)

  5. Impacts of the EU emissions trading scheme on the industrial competitiveness in Germany

    Energy Technology Data Exchange (ETDEWEB)

    Graichen, Verena; Schumacher, Katja; Matthes, Felix C.; Mohr, Lennart [Oeko Institut e.V., Berlin (Germany); Duscha, Vicky; Schleich, Joachim [Fraunhofer-Institut fuer Systemtechnik und Innovationsforschung (ISI), Karlsruhe (Germany); Diekmann, Jochen [DIW, Berlin (Germany)

    2008-09-15

    The authors of the contribution under consideration present a discussion of methods, and provide empirical results for the analysis of effects of the EU Emissions Trading Scheme on product costs and subsequent impacts on international competitiveness. The discussion shows that the combination of intensity of trade indicators and value at stake indicators reveals meaningful results that allow assessing the potential for distortion in competitiveness by the EU Emissions Trading Schemes. The analysis of trade intensities and value at stake showed that a small number of sectors may in fact be exposed to distortions in competitiveness due to both high trade intensity and high value at stake. For Germany, these include 'basic iron and steel', 'fertilizers and nitrogen compounds', 'paper and paperboard', 'aluminium and aluminium products' and 'other basic inorganic chemicals'. A number of other sectors reveal a high intensity of trade but low value at stake which implies that the increase in product costs due to the EU Emissions Trading Scheme is relatively small and negative effects on competitiveness may not be likely. For the sectors that reveal high values at stake and high trade intensities, market positions are likely to change under the EU Emissions Trading system due to increased production costs and high exposure to international competition. When deciding on which sectors are highly exposed to possible distortions in competitiveness and which measures should be implemented to address competitiveness and leakage it should be kept in mind that CO{sub 2} costs are only one of multiple factors affecting companies' production and investment decisions. Other factors that may deserve detailed investigation include product differentiation and market segmentation within a sector (including specialty products), close cooperation with domestic/European partners and intrafirm trade, differences across countries in the

  6. Buyer Liability and Voluntary Inspections in International Greenhouse Gas Emissions Trading. A Laboratory Study

    International Nuclear Information System (INIS)

    Cason, T.N.

    2003-01-01

    This paper reports a preliminary laboratory experiment in which traders make investments to increase the reliability of tradable instruments that represent greenhouse gas emissions allowances. In one half of the sessions these investments are unobservable, while in the other half traders can invite costless and accurate inspections that make reliability investments public. We implement a buyer liability rule, so that if emissions reductions are unreliable (i.e., sellers default), the buyer of the allowances cannot redeem them to cover emissions. We find that allowing inspections significantly increases the reliability investment rate and overall efficiency. Prices of uninspected allowances usually trade at a substantial discount due to the buyer liability rule, which provides a strong market incentive for sellers to invest in reliability

  7. Carbon emission allowance allocation with a mixed mechanism in air passenger transport.

    Science.gov (United States)

    Qiu, Rui; Xu, Jiuping; Zeng, Ziqiang

    2017-09-15

    Air passenger transport carbon emissions have become a great challenge for both governments and airlines because of rapid developments in the aviation industry in recent decades. In this paper, a mixed mechanism composed of a cap-and-trade mechanism and a carbon tax mechanism is developed to assist governments in allocating carbon emission allowances to airlines operating on the routes. Combined this mixed mechanism with an equilibrium strategy, a bi-level multi-objective model is proposed for an air passenger transport carbon emission allowance allocation problem, in which a government is considered as a leader and the airlines as the followers. An interactive solution approach integrating a genetic algorithm and an interactive evolutionary mechanism is designed to search for satisfactory solutions of the proposed model. A case study is then presented to show its practicality and efficiency in mitigating carbon emissions. Sensitivity analyses under different tradable and taxable levels are also conducted, which can give the government insights as to the tradeoffs between lowering carbon intensity and improving airlines' operations. The computational results demonstrate that the mixed mechanism can assist greatly in carbon emission mitigation for air passenger transport and therefore, it should be established as part of air passenger transport carbon emission policies. Copyright © 2017 Elsevier Ltd. All rights reserved.

  8. The Architecture of Emission Allowance Markets and Incentives for Investment in Electricity

    International Nuclear Information System (INIS)

    Palmer, Karen; Burtraw, Dallas

    2007-06-01

    Regulating emissions through a cap-and-trade mechanism provides firms with more options for coming into compliance with an environmental rule than just installing emissions controls. Research on the SO 2 and NO x cap and trade programs in the US suggest that by placing a price on each ton of emissions these programs encourage R and D into improving the emissions reducing capability of control technologies and encourage investment in other types of know how. This is exemplified, for example, by experiments with blending of low and medium sulphur coals, which allows for cost-effective reductions in emissions especially along a transition path to tighter SO 2 constraints over time. Looking ahead to future climate regulation, the importance of continuous incentives for control of emissions that are priced under the regulation should not be under-estimated. Some have suggested that binding restrictions on CO 2 emissions should be postponed until low-emitting technologies (carbon capture and sequestration) or non emitting technologies (renewables) experience a major technological break through and that the main focus of public resources should be on encouraging technological advance in these areas. Experience with SO 2 regulation suggests that pricing emissions will produce unexpected innovations to reduce emissions related costs and waiting for the 'big fix' will not be sufficient. How allowances are initially allocated can have an important influence on the turn-over of capital and what types of technologies firms choose to invest in. The EU ETS provision that discontinues allowance allocation to existing facilities that retire creates a disincentive to retire dirty plants. This may be partially offset by the new unit set aside feature of the ETS. An updating approach to allocation could lead the industry to prefer lower emitting technologies and fuels and could be structured in a way that encourages renewables, but this set of incentives comes at the cost of reduced

  9. Community system updating and extension concerning greenhouse gas emissions duties trading

    International Nuclear Information System (INIS)

    Arrieta-Langarika, I.

    2010-01-01

    Approving 29/2009/CE Directive, that amends Directive 2003/87/EC, relating to a trading system for allowances of greenhouse gas emissions in the Community, the European Union wants to improve this system, and, in that way, providing an appropriate tool for achieving the emissions reduction targets, set for 2020: in particular, reducing the emissions of carbon dioxide (CO 2 ) in a 20% compared to 1990 levels. Recognizing the virtues of this system as an innovative tool for reducing emissions, it should be harmonized through the use of common standards that ensure equal conditions of the facilities affected and their update, among others, increasing their scope and establishing a system of re-allocation to reduce emissions. At the same time, the regulation adopted by the EU should not address possible competition difficulties, that may arise for the industries affected by this emission trading system, more specifically, the problem of carbon leakage: the phenomenon refers to the risk that European industries must move outside the EU for not being able to cope with competition from other countries with less stringent limitations on this matter. In any case, the regime established by Directive 29/2009/CE is subject to possible changes in function of international countries might conclude. (Author) 8 refs.

  10. The impact of the EU emissions trading scheme on the price of electricity in the Netherlands

    International Nuclear Information System (INIS)

    Sijm, J.P.M.

    2004-02-01

    In this paper a specific aspect of the proposed EU Emissions Trading System (EU ETS) is discussed, namely the potential impact of the EU ETS on the price of electricity in the Netherlands and, hence, the potential implications for Dutch power producers and consumers. It shows that the EU ETS may lead to a significant increase in the price of electricity in the Netherlands (and other EU Member States), depending on the marginal costs of emissions trading (i.e. the price of an emission allowance), the emission factor of the marginal production technology to generate electricity, and the extent to which the costs of emissions trading will be passed on to the end-users of electricity. If, for one reason or another, these costs will not be passed on to power consumers, it will have an adverse impact on overall efficiency from both an energy and economic point of view. On the other hand, if - as expected - these costs are indeed passed on to end-users of electricity, it will benefit power producers (mainly owing to the economic rent of allocating emission allowances for free), while it will harm those energy-intensive industries that, in turn, are not able to pass the higher electricity costs to their customers (resulting in a loss of economic production and income). To some degree, these effects can be best avoided by auctioning emission allowances mandatory throughout the EU ETS and using the auction revenues to reduce the overall level of taxation and social premiums in order to improve the overall competitiveness of domestic industries and to (partly) compensate power consumers for the ET-induced increase in the price of electricity

  11. The political economy of emissions trading

    International Nuclear Information System (INIS)

    Hanoteau, J.

    2004-06-01

    This thesis is a positive analysis of emissions trading systems' implementation. We explain why allowances are generally granted for free even though normative economic analysis recommends their sale. We show empirically that free tradable permits, source of windfall profit, motivate rent seeking behaviours. The study focuses on the US market for SO 2 emissions allowances. The initial allocation rule resulted from parliamentary discussions that looked like a zero sum game. We formalize it as an endogenous sharing rule, function of lobbying effort, and we test it using political (money) contributions.We analyse theoretically the behaviour of an influenced regulator that has chosen to organize a market for permits and that must still decide on two policy variables: the whole quantity of permits and the way to allocate them initially. We formalize this decisions making process with the common agency model of politics.We show that the choice of an initial allocation rule is not neutral in presence of political market failures (lobbying). The decision to sell the permits or to grant them for free modifies the shareholders' incentive, in a polluting industry, to pressure for or against the reduction of legal emissions.Then, we analyse the public arbitration between the two policy variables when several industrial lobbies play a partially cooperative game for the free permits. The regulator chooses in priority to grant the rights for free rather than to manipulate their quantity, and this constitutes an efficient answer to the political influence. (author)

  12. Does trade matter for carbon emissions in OECD countries? Evidence from a new trade openness measure.

    Science.gov (United States)

    Gozgor, Giray

    2017-12-01

    This paper analyzes the impacts of the per capita income, the per capita energy consumption, and the trade openness on the level of per capita carbon emissions in the panel dataset of 35 Organization for Economic Cooperation and Development (OECD) countries over the period 1960-2013. Along with the nominal trade openness, the paper uses a different trade openness measure, so called as the "trade potential index" (TPI). To the best of our knowledge, this is the first paper that uses the TPI in the empirical environmental Kuznets curve (EKC) hypothesis literature. The paper finds that the EKC hypothesis is valid and there is an "inverted-U" relationship between the income and the carbon emissions. In addition, the paper observes that there is a positive effect of the energy consumption on the carbon emissions. Furthermore, the results indicate that both trade openness measures are negatively associated with the carbon emissions in the OECD countries in the long run.

  13. Policy design and performance of emissions trading markets: an adaptive agent-based analysis.

    Science.gov (United States)

    Bing, Zhang; Qinqin, Yu; Jun, Bi

    2010-08-01

    Emissions trading is considered to be a cost-effective environmental economic instrument for pollution control. However, the pilot emissions trading programs in China have failed to bring remarkable success in the campaign for pollution control. The policy design of an emissions trading program is found to have a decisive impact on its performance. In this study, an artificial market for sulfur dioxide (SO2) emissions trading applying the agent-based model was constructed. The performance of the Jiangsu SO2 emissions trading market under different policy design scenario was also examined. Results show that the market efficiency of emissions trading is significantly affected by policy design and existing policies. China's coal-electricity price system is the principal factor influencing the performance of the SO2 emissions trading market. Transaction costs would also reduce market efficiency. In addition, current-level emissions discharge fee/tax and banking mechanisms do not distinctly affect policy performance. Thus, applying emissions trading in emission control in China should consider policy design and interaction with other existing policies.

  14. Emissions trading and green power : profitability for buyers and sellers

    International Nuclear Information System (INIS)

    Haites, E.

    1998-01-01

    Proposed features of the competitive electricity market in Ontario were reviewed. The speaker predicted that demand for renewable energy in Ontario's competitive electricity market will be affected by green power, emissions trading, labelling, and renewables portfolio standard. Under current regulations retailers can charge customers a premium for purchasing electricity generated by 'green' sources. The existing limits on emissions of sulphur dioxide, nitrogen oxides and carbon dioxides will remain in place, but an emissions cap and trading program for all Ontario-based generation is an option to consider. Ontario's Market Design Committee (MDC) has recommended the implementation of emissions trading for electricity-related air pollutants for all generators located in Ontario. The complex mechanics of emission trading are explained. The MDC recommendation of the use of standard labels to disclose the mix of energy sources used by sellers of electricity and their associated pollution emissions are also summarized

  15. Understanding the side effects of emission trading: implications for waste management.

    Science.gov (United States)

    Braschel, Nina; Posch, Alfred; Pierer, Magdalena

    2014-01-01

    The trading of emission allowances is an important market instrument in climate policy. However, the inclusion of certain branches of industry in the trading system not only provides incentives for emission reduction, it also entails unwanted side effects. Thus, the objective of the present study is to identify such side effects-positive and negative-by examining the potential impact of waste management inclusion in the European Union Emissions Trading Scheme (EU ETS). Desk research was supplemented with qualitative and quantitative empirical analysis (based on expert interviews and a questionnaire) in order to analyse the related perceptions and expectations of actors and stakeholders. The impact of waste management inclusion in the EU ETS is analysed in terms of the following three areas: (i) costs and cost pass-through, (ii), competitiveness and market position, and (iii) carbon leakage. Concerning expectations in the area of costs, both the interviewed experts and the practitioners surveyed thought that costs were likely to increase or that they could be passed on to customers. However, experts and practitioners differed with respect to the possibility of carbon leakage. Clearly, increased knowledge of the possible impact arising from inclusion of the waste sector in the EU ETS would enable managers to become more proactive and to manage waste streams and treatment options more economically.

  16. National Framework for GHG Emission Trading in Russia

    International Nuclear Information System (INIS)

    Kotov, V.; Nikitina, E.

    2003-01-01

    If Russia ratifies the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC), domestic implementation of its international commitments under this international regime will require special national responses, i.e. institutional capacity building for application of its mechanisms. The Kyoto Protocol and its mechanisms, particularly, international emission trading (IET) and joint implementation (JI), mark a turning point, with opportunities for Russia to benefit from an economic and environmental standpoint from international cooperation. Russia might wish to sell to other parties a surplus in its assigned amount for the first commitment period in 2008-2012, as according to existing estimates its GHG emissions are expected to be below their 1990 base level. In order to participate in international emission trading, Russia has to meet several international requirements, including providing national inventory and reporting and establishing national registry compatible with the standard international format. It is to establish a domestic institutional regime defining laws and rules of behaviour for its participants, the administrative frameworks, and designing major schemes for domestic emission trading programme. Russia's emission trading system is not formed yet. This is a challenging innovation for Russia, as in its previous environmental management practices it did not have any experience in domestic emission trading with other air pollutants. The paper examines the key elements suggested in a number of existing proposals, assessments, and approaches of the government, parliamentarians and non-governmental experts for its institutional design which is at the core of ongoing climate policy debates in the country. These approaches and practical suggestions define the current state-of-the-art in domestic emission trading regime formation and channel the paths of its institutional development in the future. This paper analyses peculiarities

  17. For the Benefit of California Electricity Ratepayers: Electricity Sector Options for the Use of Allowance Value Created under California’s Cap-and-Trade Program

    OpenAIRE

    Burtraw, Dallas; McLaughlin, David; Szambelan, Sarah Joh

    2012-01-01

    California will implement a cap-and-trade program to limit emissions of carbon dioxide covering industry and electricity sector emissions in 2013, expanding to cover transportation and natural gas in 2015. Although cap-and-trade would increase annual electricity costs for the average customer by $30 to nearly $100, the allowance value created under the program can offset all of these costs and even reduce electricity bills. California’s Air Resources Board has directed electricity regulators ...

  18. Emissions trading and investment decisions in the power sector-a case study in Finland

    International Nuclear Information System (INIS)

    Laurikka, Harri; Koljonen, Tiina

    2006-01-01

    Organizations, which consider investment in or divestment of power production licences/capacity within the European Community, are exposed to the impacts of the European Union Emission allowance Trading Scheme (EU ETS). In this paper, the consequences of the EU ETS on investment decisions are explored in a country-specific setting in Finland. First, we review the general mechanisms through which the EU ETS influences size, timing and cashflows of an investment. Next, we discuss the projected changes in Finnish power producers' investment environment and examine the financial impacts due to the EU ETS on a case investment decision, a hypothetical condensing power plant (250 MW e ). The standard discounted cash flow (DCF) analysis is extended to take into account the value of two real options: the option to wait and the option to alter operating scale. In a quantitative investment appraisal, the impact of emissions trading not only depends on the expected level of allowance prices, but also on their volatility and correlation with electricity and fuel prices. The case study shows that the uncertainty regarding the allocation of emission allowances is critical in a quantitative investment appraisal of fossil fuel-fired power plants

  19. Information report submitted by the Commission for European Affairs on the reform of the emission allowances market. Nr 4569

    International Nuclear Information System (INIS)

    Leroy, Arnaud

    2017-01-01

    This parliamentary report first proposes a presentation of the European carbon emission allowances market or emission trading scheme (ETS) by recalling the context of its creation, and by describing its operation (a trading platform to reduce CO_2 emission in Europe), and commenting critics which are generally made about this market. Then, the authors present and comment proposals of reform with notably the creation of a reserve fund of stability, and a structural reform of the market. The authors then explain why and how the ETS reform must go beyond that if the European Union wants to meet commitments defined in the Paris agreement

  20. Advancing the experiment to reality: Perspectives on Shanghai pilot carbon emissions trading scheme

    International Nuclear Information System (INIS)

    Wu, Libo; Qian, Haoqi; Li, Jin

    2014-01-01

    Shanghai, as the most advanced mega city in China, has launched a pilot carbon emission trading scheme (SH-ETS) that is designed to achieve a compromise between the domestic context in Shanghai, and a need for national policy appeal. This paper gives an overview of the latest progress of the SH-ETS and sheds some light on the features of key design components, such as the threshold for inclusion, sector coverage, cap setting, allowance allocation and the Monitoring, Reporting and Verification (MRV) system. Based on a concern that manipulative principles and economic dynamics may lead to uncertainties and ultimately influence the emission reduction effect of the scheme, this paper conducts an evaluation of potential uncertainties, such as those caused by changes in patterns of economic growth, strategic trading activities related to the bankable allowances, carbon leakage risks and insufficient MRV capabilities. To advance the experiment to reality, this paper suggests some changes are made to the pilot, which include adjusting the allowance allocation principles to facilitate change in the domestic energy structure, improving the disclosure of emission data to guarantee information symmetry, gauging the carbon leakage risks to strengthen compliance, and introducing risk management for non-regulated players and derivatives products

  1. Eu emission trading scheme and its implications on energy sector of Lithuania

    International Nuclear Information System (INIS)

    Streimikiene, D.; Mikalauskiene, A.

    2004-01-01

    The main objectives of the article are to analyse the theoretical principles of emission trading and to emphasize the main features and requirements of EU emission trading scheme. The goal of the article to assess the impact of GHG emission trading on economy and GHG emission reduction in EU and Lithuania

  2. The emission trading E U system: Assessment and prospects

    International Nuclear Information System (INIS)

    Golini, G.

    2008-01-01

    The system of emission trading is a cap and trade mechanism aimed at reducing greenhouse gas emissions in an economically efficient way. It draws on Article 17 of the Kyoto Protocol and was established by directive 2003/87/CE amended by Directive 2004/101/EC. [it

  3. Virtual CO2 Emission Flows in the Global Electricity Trade Network.

    Science.gov (United States)

    Qu, Shen; Li, Yun; Liang, Sai; Yuan, Jiahai; Xu, Ming

    2018-05-14

    Quantifying greenhouse gas emissions due to electricity consumption is crucial for climate mitigation in the electric power sector. Current practices primarily use production-based emission factors to quantify emissions for electricity consumption, assuming production and consumption of electricity take place within the same region. The increasingly intensified cross-border electricity trade complicates the accounting for emissions of electricity consumption. This study employs a network approach to account for the flows in the whole electricity trade network to estimate CO 2 emissions of electricity consumption for 137 major countries/regions in 2014. Results show that in some countries, especially those in Europe and Southern Africa, the impacts of electricity trade on the estimation of emission factors and embodied emissions are significant. The changes made to emission factors by considering intergrid electricity trade can have significant implications for emission accounting and climate mitigation when multiplied by total electricity consumption of the corresponding countries/regions.

  4. Guidance to regulations on trade with emission permits for carbon dioxide; Vaegledning till lagstiftning om handel med utslaeppsraetter foer koldioxid

    Energy Technology Data Exchange (ETDEWEB)

    2008-07-15

    This guidance is intended to facilitate application of the rules on emissions trading. The guidance is principally concerned with issues relating to permit appraisal and monitoring, but also discusses some terms common to permits and allocations, such as installation and operator. The guidance follows the same structure as the Swedish Environmental Protection Agency regulations (NFS 2007:5) in order to provide direct support for the rules. The focus is on providing a general description of the responsibilities of the operator and application of the rules. In addition, some difficult terms and relationships are explained. However, no exhaustive description of the operator's responsibilities is given, nor are the rules on verification described. We therefore recommend that the guidance should be read in conjunction with the Trading Act, the Trading Ordinance and the Swedish Environmental Protection Agency regulations. The first chapter presents a brief description of the purpose of the trading scheme, and is followed by a chapter in which the rules on applying for permits and the application procedure are reviewed. The next chapter gives a description of how the operator should monitor emissions and how the rules for the monitoring plan work, as well as the options that exist for simplified monitoring. The next chapter looks at notifications the operator might have to make and what they should contain. Guidance is also provided on how the county administrative board should process these notifications. The conditions of the permit decision are also briefly described. This is followed by a short chapter on the emissions report and the materiality threshold. The final chapter comments on certain parts of the annexes to the regulations. The EU Emissions Trading Directive has been implemented in Sweden through the Emissions Trading Act (2004:1199) (the Trading Act), the Emissions Trading Ordinance (2004:1205), the Swedish Environmental Protection Agency regulations

  5. Demand and supply of wood fuels in the emission trade

    International Nuclear Information System (INIS)

    Ranta, T.; Lahtinen, P.; Laitila, J.

    2005-01-01

    The emission trade according to the EU directive on greenhouse gas emission allowance started at the beginning of the year 2005. This will boost the demand for wood fuels because of the addition-al value of CO 2 neutrality compared to fossil fuels. This bulletin covers the development of the demand and supply of wood fuels from 2002 to 2010 both at a national and a provincial level. The demand and supply balance of wood fuels will be evaluated both without the effect of emission trade and when the emission trade price level is 20 euro/ton- CO 2 for emission rights in 2010. The evaluations of fuel consumption for individual boilers were made with the help of the databases of Electrowatt-Ekono Ltd. The demand for wood fuels was estimated to double by the year 2010, being almost 50 TWh. The share of forest chips of the demand was one third, i.e. 17 TWh. The supply potential was divided into forest chips and solid by-products from forest industry. Forest chip sources included small diameter wood from young forests and logging residues and stumps from re-generation felling sites. The supply potential calculations of logging residues and stump biomass were based on databases of regeneration felling stands. The biomass potential from small diamreter wood was evaluated on the basis of field measurements of NFI 8 and 9 at a provincial level and multi-source data at a municipal level. In 2010, the supply potential of by-products was estimated to be 28 TWh of which 11 TWh was marketable out-side of the internal use of forest industry. Correspondingly, the theoretical potential of forest chips was estimated to be 51 TWh and the techno-economical potential 24 TWh. As a result of the regional optimization model, the energy use of wood fuels was 29 TWh, which was 59 % of the potential demand. In emission trade the demand was 33 TWh, which was 68 % of the potential demand. Regionally, the potential demand for wood fuels for energy use was higher than the supply in all provinces

  6. Building Trust in Emissions Reporting. Global Trends in Emissions Trading Schemes

    Energy Technology Data Exchange (ETDEWEB)

    Kruijd, J.; Walrecht, A.; Laseur, J.; Schoolderman, H.; Gledhill, R.

    2007-02-15

    This report highlights the key characteristics of the world's main emission trading schemes, presents a new vision for compliance in emissions trading and calls for global action to develop this. Climate change is now at the top of the political and business agenda. Al Gore's 'An Inconvenient Truth', the Stern Review and the now almost daily press coverage of climate change science and impacts have engaged many of the global leaders in government and in business. Emissions trading is increasingly seen as a central plank in the response to climate change. But market mechanisms like this depend on trust and confidence. Any widespread or systemic failure, as a result of deficient monitoring and reporting, flawed compliance processes or fraud, could undermine confidence in markets and regulation and jeopardise the crucial policy goals that they are designed to address. Key to this trust are the three central criteria of transparency, accountability and integrity. The PricewaterhouseCoopers report looks at how the patchwork of trading schemes that are emerging around the globe stacks up against these criteria. Despite good intentions across the board, the general picture is one of new and immature markets, inconsistent and complex compliance frameworks and risk. PricewaterhouseCoopers make the case for urgent and coordinated action to develop a framework of generally accepted principles and practice that will underpin trust and efficiency in these new markets - in effect, a new Global Emissions Compliance Language.

  7. Building Trust in Emissions Reporting. Global Trends in Emissions Trading Schemes

    International Nuclear Information System (INIS)

    Kruijd, J.; Walrecht, A.; Laseur, J.; Schoolderman, H.; Gledhill, R.

    2007-02-01

    This report highlights the key characteristics of the world's main emission trading schemes, presents a new vision for compliance in emissions trading and calls for global action to develop this. Climate change is now at the top of the political and business agenda. Al Gore's 'An Inconvenient Truth', the Stern Review and the now almost daily press coverage of climate change science and impacts have engaged many of the global leaders in government and in business. Emissions trading is increasingly seen as a central plank in the response to climate change. But market mechanisms like this depend on trust and confidence. Any widespread or systemic failure, as a result of deficient monitoring and reporting, flawed compliance processes or fraud, could undermine confidence in markets and regulation and jeopardise the crucial policy goals that they are designed to address. Key to this trust are the three central criteria of transparency, accountability and integrity. The PricewaterhouseCoopers report looks at how the patchwork of trading schemes that are emerging around the globe stacks up against these criteria. Despite good intentions across the board, the general picture is one of new and immature markets, inconsistent and complex compliance frameworks and risk. PricewaterhouseCoopers make the case for urgent and coordinated action to develop a framework of generally accepted principles and practice that will underpin trust and efficiency in these new markets - in effect, a new Global Emissions Compliance Language

  8. Limiting overselling in international emissions trading 1: Costs and environmental impacts of alternative proposals

    Energy Technology Data Exchange (ETDEWEB)

    Haites, E.; Missfeldt, F.

    2002-07-01

    Emission trading allows a country with an emission limitation commitment, an Annex B Party, to sell parts of its assigned amount (AAUs) to other Annex B Parties. If the seller subsequently does not have sufficient AAUs to cover its actual emissions it will be subject to the penalties for non-compliance. The revenue from the sale of AAUs may exceed the sanctions for non-compliance if these penalties are weak or difficult to enforce. Under these circumstances emission trading enables a country to benefit financially through non-compliance. Liability proposals seek to ensure that non-compliance is not rewarded, by limiting sales of AAUs to amounts surplus to the seller's compliance needs. This study develops and applies a model to assess the performance of different liability proposals. A simple model based on the Emissions Projection and Policy Analysis (EPPA) model of the Massachusetts Institute of Technology is used for the analysis. (BA)

  9. Korea's emission trading scheme and policy design issues to achieve market-efficiency and abatement targets

    International Nuclear Information System (INIS)

    Park, Hojeong; Hong, Won Kyung

    2014-01-01

    In 2008, the government of Republic of Korea (Korea) announced the national abatement target aiming at 30% reductions from the Business-as-Usual projections by 2020. Accordingly, the Emission Trading Scheme (ETS) will be implemented from 2015 onwards. As ETS performance substantially depends on the structural design, it is critically important to examine the details of Korean ETS for the achievement of cost effectiveness and concurrent development of an active emission trading market. This paper addresses several policy design issues for this purpose. After providing an overview on the current framework of Korean ETS, we propose ways to achieve flexibility, consistency and market efficiency of the program in consideration of the preexisting policies. Issues in policy design are discussed by focusing on allowance allocation, market stabilization measures and price mechanism in the emission and energy markets in Korea. This paper will serve as a practical guideline for establishing sustainable and market-efficient Korean ETS that can be compatible with the international standards as in the EU ETS. - Highlights: • Emission Trading Scheme (ETS) will be implemented from 2015 in Korea to reduce CO 2 . • ETS performance substantially depends on structural design. • We provide policy overview on the current framework of Korean ETS. • Several policy design issues are discussed for developing policy consistency. • We focus on allowance allocation, allowance reserve and market stabilization measures

  10. Developments in the emissions trading market 2009; Utvecklingen paa utslaeppsraettsmarknaden 2009

    Energy Technology Data Exchange (ETDEWEB)

    Bohnstedt, Sophie; Karlberg, Marie; Myrman, Johanna

    2010-07-01

    The Energy Agency has analyzed the development of emissions trading within the EU and globally in 2009. The analysis relates to larger events which mainly affected the prices and traded volumes during the year. The analysis includes the market for European emissions, markets for the project-based mechanisms, development of trade with the assigned emission units (AAUs), the unregulated market and developments in other trading in the world. The report is based on existing studies and monitoring of markets development during January to November 2009

  11. Testing the theory of emissions trading. Experimental evidence on alternative mechanisms for global carbon trading

    International Nuclear Information System (INIS)

    Klaassen, Ger; Nentjes, Andries; Smith, Mark

    2005-01-01

    Simulation models and theory prove that emission trading converges to market equilibrium. This paper sets out to test these results using experimental economics. Three experiments are conducted for the six largest carbon emitting industrialized regions. Two experiments use auctions, the first a single bid auction and the second a Walrasian auction. The third relies on bilateral, sequential trading. The paper finds that, in line with the standard theory, both auctions and bilateral, sequential trading capture a significant part (88% to 99%) of the potential cost savings of emission trading. As expected from trade theory, all experiments show that the market price converges (although not fully) to the market equilibrium price. In contrast to the theory, the results also suggest that not every country might gain from trading. In both the bilateral trading experiment and the Walrasian auction, one country actually is worse off with trade. In particular bilateral, sequential trading leads to a distribution of gains significantly different from the competitive market outcome. This is due to speculative behavior, imperfect foresight and market power

  12. Monitoring, Accounting and Enforcement in Emissions Trading Regimes

    International Nuclear Information System (INIS)

    Peterson, S.

    2003-01-01

    Monitoring, accounting and enforcement have been addressed in quite a number of presentations, papers and discussions in the past four CATEP workshops. Besides drawing conclusions from the experiences with existing trading regimes, different aspects of compliance have been analysed in more detail and finally there has been a special focus on standardised accounting systems. This paper tries to summarise the diverse findings to get a comprehensive picture of what is needed to assure high compliance in emissions trading regimes and identify any specific problems. The first section focuses on real trading regimes that are all local or at most national. It describes the monitoring, accounting and enforcement systems in existing and planned trading regimes to get an idea of what such systems include and to draw conclusions from experience. One focus is on enforcement mechanisms, as different from monitoring and accounting, which are basically a question of regulation and technology, penalties and compliance are a question of choices by participants and can be analysed with analytic tools. Section 3 deals with specific monitoring, accounting and enforcement problems in international emissions trading. It describes the development of internationally standardised systems and discusses the commitment period reserve as one instrument to avoid overselling of permits in international emission trading under the Kyoto Protocol. Section 5 provides a summary and conclusion

  13. Does trade openness affect CO2 emissions: evidence from ten newly industrialized countries?

    Science.gov (United States)

    Zhang, Shun; Liu, Xuyi; Bae, Junghan

    2017-07-01

    This paper examines whether the hypothetical environmental Kuznet curve (EKC) exists or not and investigates how trade openness affects CO 2 emissions, together with real GDP and total primary energy consumption. The study sample comprises ten newly industrialized countries (NICs-10) from 1971 to 2013. The results support the existence of hypothetical EKC and indicate that trade openness negatively and significantly affects emissions, while real GDP and energy do positive effects of emissions. Moreover, the empirical results of short-run causalities indicate feedback hypothetical linkage of real GDP and trade, unidirectional linkages from energy to emissions, and from trade to energy. The error correction terms (ECTs) reveal in the long run, feedback linkages of emissions, real GDP, and trade openness, while energy Granger causes emissions, real GDP, and trade, respectively. The study recommendations are that our policymakers should encourage and expand the trade openness in these countries, not only to restrain CO 2 emissions but also to boost their growth.

  14. Compulsory procurement of emission allowances. How will things will continue after the Copenhagen conference?; Emissionszertifikatepflichten fuer Kraftwerke. Wie geht es weiter nach der Kopenhagen-Konferenz?

    Energy Technology Data Exchange (ETDEWEB)

    Telke, Juergen [Kiel Univ. (Germany). Rechtswissenschaftliche Fakultaet

    2010-03-15

    German power plants are obliged to hold emission allowances for their carbon dioxide emissions. This obligation is largely established by the Kyoto Protocol, which was approved in 1997 and entered into force in 2005 and which specifies binding emission reduction goals for 37 industrial states. Because this agreement is only valid until the end of 2012, negotiations were held for a follow-on agreement in Copenhagen in mid-December 2009. This article explains the current legal situation as laid down in the Kyoto Protocol and the EU Emission Trade Directive that followed from it. It goes on to analyse the impact of the Copenhagen conference on the emission allowance trade and gives appropriate recommendations for action for German power plants.

  15. The Long Road from Ljubljana to Kyoto: Implementing Emission Trading Mechanisms and CO2 Tax

    Directory of Open Access Journals (Sweden)

    Tanja Markovič-Hribernik

    2006-03-01

    Full Text Available According to the Kyoto Protocol, Slovenia is required to reduce GHG emissions to an average of 8% below base year 1986 emissions in the period 2008-2012. Slovenia established different measures for reducing GHG emissions long before its ratification. It was first transition country who implemented CO2 tax in the 1997. Several changes in CO2 tax have not brought the desired results. CO2 emissions have actually increased. At the beginning of 2005, Slovenia joined other EU member states by implementing the emissions trading instrument, defined by new EU Directive. At the same time, Slovenia has adopted a new CO2 tax system, which is compatible with the new circumstances. The main purpose of this paper is to present the characteristics of Slovenian approach to national allocation plan for emissions trading and analyze the problems of the CO2 tax in Slovenia. Paper also describes the compliance cost of achieving the Kyoto target and expected movements on the Slovenian allowances market.

  16. NOx emission trade. What is the state-of-the-art?

    International Nuclear Information System (INIS)

    Witkamp, J.

    2003-01-01

    In Leiden, Netherlands, 28 November 2002, a symposium was organized on the subject of NOx emission trade in preparation of a NOx emission trade system. In this article an overview is given of the developments so far [nl

  17. Evaluation of policy options to reform the EU Emissions Trading System. Effects on carbon price, emissions and the economy

    Energy Technology Data Exchange (ETDEWEB)

    Verdonk, M.; Brink, C.; Vollebergh, H.; Roelfsema, M.

    2013-04-15

    The EU Emissions Trading System (EU ETS) is a key instrument of EU climate policy, providing a clear reduction pathway for CO2 emissions. The current carbon price (of about 3 euros per tonne of CO2, April 2013) is much lower than previously expected (which was around 30 euros) and is likely to remain low for a long time. This fuels doubts about whether the ETS will remain a key policy instrument in the long term. Such doubts also increase investment uncertainty, which is likely to have a negative impact on further investments in low-carbon technologies needed for a low-carbon economy in 2050. In November 2012, the European Commission put forward six options for a more structural reform of the EU ETS. The proposed options vary from reducing the cap and expanding the ETS to include other sectors, to strengthening the ETS by measures directly affecting allowance prices. The Dutch Ministry of Infrastructure and the Environment (IenM) asked the PBL Netherlands Environmental Assessment Agency to assess the impact of these options. Four categories of options for reforming the ETS were evaluated: (1) reducing the supply of emission allowances; (2) expanding the ETS by including other sectors; (3) a minimum price for auctioned allowances; and (4) combining ETS with a carbon tax. Recently, the European Parliament voted against the European Commission's proposal to temporarily set aside emission allowances. In an earlier assessment of this proposal, PBL concluded that the impact of this backloading proposal on CO2 prices is likely to be limited, because the total amount of allowances up to 2020 would remain unchanged. All options analysed would reduce emissions and cause the emission price to increase. A minimum price on carbon, however, would provide the best opportunity to make the ETS more robust against unforeseen events, such as a further deterioration of the economy. Such a minimum price would result in more emission reductions if abatement proves to be cheaper

  18. Border carbon adjustments: Addressing emissions embodied in trade

    International Nuclear Information System (INIS)

    Sakai, Marco; Barrett, John

    2016-01-01

    Approximately one fourth of global emissions are embodied in international trade and a significant portion flows from non-carbon-priced to carbon-priced economies. Border carbon adjustments (BCAs) figure prominently as instruments to address concerns arising from unilateral climate policy. Estimating the volume of emissions that could be potentially taxed under a BCA scheme has received little attention until now. This paper examines how a number of issues involved in the implementation of BCAs can affect their ability to cover emissions embodied in trade and thus address carbon leakage. These issues range from ensuring compliance with trade provisions and assumptions on the carbon intensity of imports, to determining which countries are included and whether intermediate and final demand are considered. Here we show that the volume of CO_2 captured by a scheme that involved all Annex B countries could be significantly reduced due to these issues, particularly by trade provisions, such as the principle of ‘best available technology’ (BAT). As a consequence, the tariff burdens faced by non-Annex B parties could dwindle considerably. These findings have important policy implications, as they question the effectiveness and practicalities of BCAs to reduce carbon leakage and alleviate competitiveness concerns, adding further arguments against their implementation. - Highlights: •We estimate the volume of emissions that could be potentially taxed by BCAs. •We study the effects of trade provisions and country and sectoral coverage on BCAs. •Trade provisions can significantly reduce the scope and effectiveness of BCAs. •Best available technology and exclusion of electricity reduce tariffs considerably. •BCAs are not optimal policy tools to address carbon leakage concerns.

  19. Reduction of greenhouse gas in power industry by emission trading system

    Energy Technology Data Exchange (ETDEWEB)

    Lee, Eun Myung; Lee, Kee Hoon [Korea Energy Economics Institute, Euiwang (Korea)

    1999-04-01

    The rules governing their implementation and operation for implementing the Kyoto Protocol including emissions permit trading, project-based credit trading and the Clean Development Mechanism are to be decided at future talks. How these policies are eventually designed will determine the effectiveness of the Protocol. However, it has been passive and insufficient to deal with the Kyoto Protocol since there is no obligation on reduction of greenhouse gas emissions. Therefore, the issues on emissions permit trading are analyzed and the strategies for utilizing the Kyoto mechanism effectively are presented through reviewing the existing negotiation strategies. Moreover, how to use emissions permit trading in the power industry, the largest greenhouse gas emissions industry, is examined by dividing into two sections, domestic and abroad. (author). 62 refs., 2 figs., 42 tabs.

  20. Initial scoping of GHG emissions trading potential in Alberta : CABREE discussion paper

    International Nuclear Information System (INIS)

    Armstrong, R.

    2002-03-01

    The past five years have seen the emergence of the concept of emissions trading for greenhouse gases, which would make possible a reduction of the costs required to meet emissions targets agreed upon under the Kyoto Protocol. Emissions trading potential and initial scoping in Alberta is examined in this document, with a special emphasis placed on greenhouse gases. The design of a system, encompassing the theory underlying the mechanism, the current developments, issues of importance in this context, as well as the potential for inclusion of other sectors in Alberta were also discussed. For the purpose of this document, emissions trading was defined as one party reducing its emissions levels then transferring the ownership of that reduction to another party who can then purchase this reduction to assist in meeting its own emissions target. Emission trading can be divided into two basic types called Cap and Trade, and Baseline and Credit. Market creation and behaviour, and regulatory behaviour are factors that can render a trading system more feasible. It is important to analyze the goals before designing the specifics of the system. The incorporation of the various sectors of the economy of Alberta would be affected by their unique features. The greatest promise for emissions trading in Alberta is shown by the energy sector. The percentage of emissions covered, the number of participants, the economic effectiveness are all criteria that affect the performance of any system. figs

  1. China’s provincial CO2 emissions embodied in international and interprovincial trade

    International Nuclear Information System (INIS)

    Guo Ju’e; Zhang Zengkai; Meng Lei

    2012-01-01

    Trades create a mechanism of embodied CO 2 emissions transfer among regions, causing distortion on the total emissions. As the world’s second largest economy, China has a large scale of trade, which results in the serious problem of embodied CO 2 emissions transfer. This paper analyzes the characteristics of China’s CO 2 emissions embodied in international and interprovincial trade from the provincial perspective. The multi-regional Input–Output Model is used to clarify provincial CO 2 emissions from geographical and sectoral dimensions, including 30 provinces and 28 sectors. Two calculating principles (production accounting principle and consumption accounting principle, ) are applied. The results show that for international trade, the eastern area accounts for a large proportion in China’s embodied CO 2 emissions. The sectors as net exporters and importers of embodied CO 2 emissions belong to labor-intensive and energy-intensive industries, respectively. For interprovincial trade, the net transfer of embodied CO 2 emissions is from the eastern area to the central area, and energy-intensive industries are the main contributors. With the largest amount of direct CO 2 emissions, the eastern area plays an important role in CO 2 emissions reduction. The central and western areas need supportive policies to avoid the transfer of industries with high emissions. - Highlights: ► China’s embodied CO 2 emissions are analyzed from the provincial perspective. ► Eastern provinces have larger CO 2 emissions embodied in international trade. ► Embodied CO 2 emissions are mainly transferred from eastern area to central area. ► Coastal provinces play important roles in CO 2 emissions reduction. ► Inland provinces need supportive policies on emissions reduction.

  2. EU Emission Trading: Starting with Carbon Dioxide

    DEFF Research Database (Denmark)

    Vesterdal, Morten; Svendsen, Gert Tinggaard

    2003-01-01

    The Commission of the European Union wants to start a limited emission trading scheme by 2005 within the Community to enable "learning-by-doing" prior to the Kyoto Protocol. This to accomplish the desired 8% target level for six different greenhouse gases. However, in the EU it is not clear whether...... all the six relevant greenhouse gases or only CO2 should be traded. What is the simplest and most practicable solution? We argue in favour of the latter option for three main reasons: the possible dominating global warming potential of CO2, expected future developments in CO2 emissions and the fact...

  3. CO2 emissions, energy consumption, income and foreign trade: A South African perspective

    International Nuclear Information System (INIS)

    Kohler, Marcel

    2013-01-01

    The effect of trade liberalisation on environmental conditions has yielded significant debate in the energy economics literature. Although research on the relationship between energy consumption, emissions and economic growth is not new in South Africa, no study specifically addresses the role that South Africa's foreign trade plays in this context. A surprising fact given trade is one of the most important factors that can explain the environmental Kuznets curve. This study employs recent South African trade and energy data and modern econometric techniques to investigate this. The main finding of interest in this paper is the existence of a long run relationship between environmental quality, levels of per capita energy use and foreign trade in South Africa. As anticipated per capita energy use has a significant long run effect in raising the country's CO 2 emission levels, yet surprisingly higher levels of trade for the country act to reduce these emissions. Granger causality tests confirm the existence of a positive bidirectional relationship between per capita energy use and CO 2 emissions. Whilst the study also finds positive bidirectional causality between trade and income per capita and between trade and per capita energy use, it appears however that trade liberalisation in South Africa has not contributed to a long run growth in pollution-intensive activities nor higher emission levels. - Highlights: • A long run relationship between CO 2 emissions, levels of energy use and trade in SA. • Per capita energy has a significant long run effect in raising SA's CO 2 levels. • Trade reduces CO 2 emissions through stimulating technological innovations. • Positive bidirectional causality between per capita energy use and CO 2 emissions. • Bidirectional causality between trade and income and trade and energy use

  4. Examining drivers of the emissions embodied in trade.

    Directory of Open Access Journals (Sweden)

    Leying Wu

    Full Text Available Emissions embodied in provincial trade (EEPT have important effects on provinces' responsibilities for carbon emission reductions. Based on a multi-regional input-output model, we calculated EEPT for China's 30 provinces in 2002, 2007 and 2010, and we attempted to determine the drivers of EEPT. The results showed that, during this period, the ratio of EEPT to production-based emissions increased over time, reaching 40.24% in 2010. In consideration of its important role in carbon emissions, we analyzed the factors attributable to EEPT through structure decomposition analysis. The decomposition results showed that final demand and carbon emission intensity were two major factors in EEPT, while the final demand in other provinces and the carbon emission intensity in the local province were major factors for Emissions embodied in provincial exports and the final demand in the local province and the carbon emission intensity in other provinces were major factors for Emissions embodied in provincial imports. Regarding the differences among the EEPT of different provinces, changes in the structure of trade were the primary reason.

  5. Emissions Trading - Growing Markets with Impacts on Energy and Biofuel Business

    International Nuclear Information System (INIS)

    Otterstroem, Tomas

    2006-01-01

    The markets for environmental derivatives are relatively new, e.g. in June 2006, the EU ETS has been operational for eighteen months and the Swedish electricity-certificate scheme has been operating for about three years. There is a clear trend towards an increasingly CO 2 -constrained economy, in which trading schemes are implemented with the purpose of reducing the overall cost of reaching the targets set. The business impacts of emissions trading are significant for many actors, both in terms of direct financial effects (e.g. need to buy or sell allowances) as indirect ones (e.g. changes in the competitiveness of fuels, the price of electricity and the demand for low-emission technologies). During 2005, almost 800 million tons of CO 2 equivalents have changed owner on the carbon markets. The market and variety of products are increasing and the market volume is expected to exceed 10 billion euros in 2006

  6. CO2 price dynamics. The implications of EU emissions trading for the price of electricity

    International Nuclear Information System (INIS)

    Sijm, J.P.M.; Bakker, S.J.A.; Harmsen, H.W.; Lise, W.; Chen, Y.

    2005-09-01

    The present study analyses the relationship between EU emissions trading and power prices, notably the implications of free allocation of emissions allowances for the price of electricity in countries of North-western Europe. To study this impact, it uses a variety of analytical approaches, including interviews with stakeholders, empirical and statistical analyses, theoretical explorations, and analyses by means of the COMPETES model. The study shows that a significant part of the costs of freely allocated allowances is passed through to power price and discusses its implications in terms of higher electricity prices for consumers and windfall profits for producers. It concludes that free allocation of emission allowances is a highly questionable policy option for a variety of reasons and suggests that auctioning might offer a better perspective

  7. Why quota trade should be restricted: The arguments behind the EU position on emissions trading

    International Nuclear Information System (INIS)

    Westskog, Hege

    2001-01-01

    In this paper I try to clarify the background and arguments behind the EU position on emissions trading in negotiating the Kyoto Protocol and their suggestions of how the supplementary cap in the Kyoto agreement can be operationalized. I discuss economic arguments for restricting quota trade with a focus on the market power issue, transaction costs, and ancillary benefits of reducing emissions of climate gases. I also address the problem of hot air as an important argument to restrict quota trade, and arguments for restrictions connected to technological innovation. Finally, I look into the ethical considerations of restrictions. (author)

  8. Why quota trade should be restricted: The arguments behind the EU position on emissions trading

    Energy Technology Data Exchange (ETDEWEB)

    Westskog, Hege

    2001-07-01

    In this paper I try to clarify the background and arguments behind the EU position on emissions trading in negotiating the Kyoto Protocol and their suggestions of how the supplementarity cap in the Kyoto agreement can be operationalized. I discuss economic arguments for restricting quota trade with a focus on the market power issue, transaction costs, and ancillary benefits of reducing emissions of climate gases. I also address the problem of hot air as an important argument to restrict quota trade, and arguments for restrictions connected to technological innovation. Finally, I look into the ethical considerations of restrictions. (author)

  9. Municipal solid waste management planning considering greenhouse gas emission trading under fuzzy environment.

    Science.gov (United States)

    Zhang, Xiaodong; Huang, Gordon

    2014-03-15

    Waste management activities can release greenhouse gases (GHGs) to the atmosphere, intensifying global climate change. Mitigation of the associated GHG emissions is vital and should be considered within integrated municipal solid waste (MSW) management planning. In this study, a fuzzy possibilistic integer programming (FPIM) model has been developed for waste management facility expansion and waste flow allocation planning with consideration of GHG emission trading in an MSW management system. It can address the interrelationships between MSW management planning and GHG emission control. The scenario of total system GHG emission control is analyzed for reflecting the feature that GHG emission credits may be tradable. An interactive solution algorithm is used to solve the FPIM model based on the uncertainty-averse preferences of decision makers in terms of p-necessity level, which represents the certainty degree of the imprecise objective. The FPIM model has been applied to a hypothetical MSW planning problem, where optimal decision schemes for facility expansion and waste flow allocation have been achieved with consideration of GHG emission control. The results indicate that GHG emission credit trading can decrease total system cost through re-allocation of GHG emission credits within the entire MSW management system. This will be helpful for decision makers to effectively determine the allowable GHG emission permits in practices. Copyright © 2014 Elsevier Ltd. All rights reserved.

  10. CH4 and N2O emissions embodied in international trade of meat

    International Nuclear Information System (INIS)

    Caro, Dario; Caldeira, Ken; LoPresti, Anna; Davis, Steven J; Bastianoni, Simone

    2014-01-01

    Although previous studies have quantified carbon dioxide emissions embodied in products traded internationally, there has been limited attention to other greenhouse gases such as methane (CH 4 ) and nitrous oxide (N 2 O). Following IPCC guidelines, we estimate non-CO 2 emissions from beef, pork and chicken produced in 237 countries over the period 1990–2010, and assign these emissions to the country where the meat is ultimately consumed. We find that, between 1990 and 2010, an average of 32.8 Mt CO 2 -eq emissions (using 100 year global warming potentials) are embodied in beef, pork and chicken traded internationally. Further, over the 20 year period, the quantity of CO 2 -eq emissions embodied in traded meat increased by 19%. The largest trade flows of emissions embodied in meat were from Brazil and Argentina to Russia (2.8 and 1.4 Mt of CO 2 -eq, respectively). Trade flows within the European region are also substantial: beef and pork exported from France embodied 3.3 Mt and 0.4 Mt of CO 2 -eq, respectively. Emissions factor of meat production (i.e. CO 2 -eq emissions per kg of meat) produced depend on ambient temperature, development level, livestock category (e.g. cattle, pork, and chicken) and livestock management practices. Thus, trade may result in an overall increase of GHG emissions when meat-consuming countries import meat from countries with a greater emissions intensity of meat production rather than producing the meat domestically. Comparing the emissions intensity of meat production of trading partners, we assess trade flows according to whether they tend to reduce or increase global emissions from meat production. (letter)

  11. Environmental benefits of distributed generation with and without emissions trading

    International Nuclear Information System (INIS)

    Tsikalakis, A.G.; Hatziargyriou, N.D.

    2007-01-01

    The need for improving energy efficiency and reducing CO 2 emissions and other pollutants, as well as the restructuring of energy markets has favoured the increase of distributed energy resources (DER). The co-ordinated control of these sources comprising renewable energy sources (RES) and distributed generators (DG) characterised by higher efficiencies and lower emissions compared to central thermal generation, when based on coal or oil provide several environmental benefits. These benefits can be quantified based on DER participation in the CO 2 emission trading market. This paper provides a method to calculate emissions savings achieved by the marginal operation of DER in liberalised market conditions using available emissions data. The participation of DER in emissions trading markets is also studied, with respect to profits, pollutants decrease and change in operating schedules. It is shown that the operation of DER can significantly reduce pollutants, provided sufficient remuneration from CO 2 emission trading market participation is provided. Moreover, it is shown that using average emissions values to calculate the environmental benefits of DER might provide misleading results. (author)

  12. Assessment of emission trading impacts on competitive electricity market price

    DEFF Research Database (Denmark)

    Singh, S.N.; Saxena, D.; Østergaard, Jacob

    2011-01-01

    analyzes the impact of electricity prices in the competitive electricity markets having a uniform market clearing price mechanism. Findings - It is found that the electricity prices depend on the system loading, generation mix, etc. at a particular hour. Various emission trading instruments are discussed...... side emission trading impact on electricity prices in the competitive power market. Design/methodology/approach - Various schemes are suggested and are being implemented to achieve this objective. It is expected that electricity price will increase due to imposition of emission taxes. This paper...... with a special emphasis on the European market. Research limitations/implications - Block bidding of the suppliers is considered whereas the demand is assumed to be inelastic. Originality/value - The emission trading impacts are analyzed on a simple example....

  13. Environmental regulations and emissions trading in China

    International Nuclear Information System (INIS)

    Chang, Y.-C.; Wang Nannan

    2010-01-01

    This paper begins with the international context concerning climate change and how China fits into this context. Concentration is then turning into the emissions control system in China including environmental planning, legislation, policy instruments and measures as well as institutional setting in China's environmental governance system. Special attentions also being paid to emissions control in China's power sector. It should be noted that the pollution discharge permit system in China only exists superficially in many places. Insufficient resources are applied to the implementation of the said permit system, which in turn means that the system is applied according to differing standards in different parts of the country. The findings of this paper suggested that emissions trading programmes are usually introduced alongside the existing policies. The power sector usually has numerous other policy objectives and therefore the design and implementation of emissions trading programmes in the sector will have to address concern about the compatibility of existing industry policies.

  14. A Global Maritime Emissions Trading System. Design and Impacts on the Shipping Sector, Countries and Regions

    Energy Technology Data Exchange (ETDEWEB)

    Faber, J.; Markowska, A.; Eyring, V.; Cionni, I.; Selstad, E. Shipping / Emissions trading / Economy / Costs / Effects / Developing countries Publication number:

    2010-01-15

    This report designs a global cap-and-trade scheme for maritime transport and assesses its impacts on the shipping sector, regions and groups of countries. It shows that it is feasible to implement a cap-and-trade scheme for greenhouse gas emissions in the maritime transport sector. Such a scheme ensures that the environmental target is met, while allowing the sector to grow and ensuring that the target is met in the most cost-effective way. An emissions trading scheme would result in an increase in the costs of shipping of less than 10%, depending on the price of allowances. The increase in import values is likely to be less than 1% for most commodity groups, and the impact on consumer prices even lower. Using new data on emissions of ships sailing to regions and country groups, this report demonstrates that the additional costs of imports for most regions and country groups are estimated to be less than 0.2% of GDP, with a few exceptions. This report demonstrates that it is possible to compensate developing countries for the increased costs of imports by using approximately two thirds of the revenues of the auction. The remainder of the revenues can be used for other aims, such as R and D into fuel-efficiency of ships.

  15. The IFIEC method for the allocation of CO2 allowances in the EU Emissions Trading Scheme. A review applied to the electricity sector

    International Nuclear Information System (INIS)

    Bart Wesselink; Sebastian Klaus Alyssa; Gilbert Kornelis Blok

    2008-03-01

    Recently the European Commission has published a proposal to improve the function of the EU-ETS by amending the Directive which establishes the EU-ETS. The main changes proposed are the establishment of one EU-wide cap and the use of auctioning for a much greater share of allowances than is currently the case, replacing most of the allocation free of charge. Auctioning of allowances will eliminate the so-called windfall profits that occur under the current allocation free of charge that is based on historic production and emission levels; a grandfathering approach. IFIEC EUROPE, the international federation of industrial energy consumers, asked Ecofys to review the method that IFIEC has developed in recent years to allocate CO2 allowances in the EU emissions trading scheme (EU-ETS). According to IFIEC, their allocation method guarantees the same environmental outcome as other methods, without causing windfall profits and with lower risks of competitiveness loss for so-called exposed industrial users of electricity. It was decided to focus this study on the European electricity sector. This was done for several reasons: CO2 emissions from electricity generation cover a large part of the overall emission under EU-ETS, the electricity sector has a single well defined output (electricity) that can be used to illustrate the potential impact of the IFIEC benchmark based allocation approach, and electricity is a substantial cost factor for IFIEC members. This evaluation covers many aspects of IFIEC's method and compares these with two other allocation methods: auctioning and historic grandfathering. Within the IFIEC method two example approaches are evaluated: a single benchmark for electricity production and fuel-specific benchmarks for coal and gas fired electricity production. In the evaluation, we cover the following aspects: What is the IFIEC method; how does it differ from other allocation methods in character (chapter 2); What is the impact of different allocation

  16. Developing emission reduction credit trading in Texas

    International Nuclear Information System (INIS)

    Dodds, J.E.

    1993-01-01

    The Texas Air Control Board has begun to develop a system of emission reduction credit training. The system will be developed incrementally over time. The first step, banking of VOC and NO x Emission Reduction Credits, began March 15, 1993. Additional programs under study and development include NO x RACT trading, emission credits for motor vehicle scrappage and alternative fuel conversion, and establishment of community organizations to generate and acquire emission reduction credits for economic development purposes

  17. Analyses of CO2 emissions embodied in Japan-China trade

    International Nuclear Information System (INIS)

    Liu Xianbing; Ishikawa, Masanobu; Wang Can; Dong Yanli; Liu Wenling

    2010-01-01

    This paper examines CO 2 emissions embodied in Japan-China trade. Besides directly quantifying the flow of CO 2 emissions between the two countries by using a traditional input-output (IO) model, this study also estimates the effect of bilateral trade to CO 2 emissions by scenario analysis. The time series of quantifications indicate that CO 2 emissions embodied in exported goods from Japan to China increased overall from 1990 to 2000. The exported CO 2 emissions from China to Japan greatly increased in the first half of the 1990s. However, by 2000, the amount of emissions had reduced from 1995 levels. Regardless, there was a net export of CO 2 emissions from China to Japan during 1990-2000. The scenario comparison shows that the bilateral trade has helped the reduction of CO 2 emissions. On average, the Chinese economy was confirmed to be much more carbon-intensive than Japan. The regression analysis shows a significant but not perfect correlation between the carbon intensities at the sector level of the two countries. In terms of CO 2 emission reduction opportunities, most sectors of Chinese industry could benefit from learning Japanese technologies that produce lower carbon intensities.

  18. Essays in renewable energy and emissions trading

    Science.gov (United States)

    Kneifel, Joshua D.

    Environmental issues have become a key political issue over the past forty years and has resulted in the enactment of many different environmental policies. The three essays in this dissertation add to the literature of renewable energy policies and sulfur dioxide emissions trading. The first essay ascertains which state policies are accelerating deployment of non-hydropower renewable electricity generation capacity into a states electric power industry. As would be expected, policies that lead to significant increases in actual renewable capacity in that state either set a Renewables Portfolio Standard with a certain level of required renewable capacity or use Clean Energy Funds to directly fund utility-scale renewable capacity construction. A surprising result is that Required Green Power Options, a policy that merely requires all utilities in a state to offer the option for consumers to purchase renewable energy at a premium rate, has a sizable impact on non-hydro renewable capacity in that state. The second essay studies the theoretical impacts fuel contract constraints have on an electricity generating unit's compliance costs of meeting the emissions compliance restrictions set by Phase I of the Title IV SO2 Emissions Trading Program. Fuel contract constraints restrict a utility's degrees of freedom in coal purchasing options, which can lead to the use of a more expensive compliance option and higher compliance costs. The third essay analytically and empirically shows how fuel contract constraints impact the emissions allowance market and total electric power industry compliance costs. This paper uses generating unit-level simulations to replicate results from previous studies and show that fuel contracts appear to explain a large portion (65%) of the previously unexplained compliance cost simulations. Also, my study considers a more appropriate plant-level decisions for compliance choices by analytically analyzing the plant level decision-making process to

  19. China's emissions trading takes steps towards big ambitions

    Science.gov (United States)

    Jotzo, Frank; Karplus, Valerie; Grubb, Michael; Löschel, Andreas; Neuhoff, Karsten; Wu, Libo; Teng, Fei

    2018-04-01

    China recently announced its national emissions trading scheme, advancing market-based approaches to cutting greenhouse gas emissions. Its evolution over coming years will determine whether it becomes an effective part of China's portfolio of climate policies.

  20. EU Emission Trading - better job second time around?

    International Nuclear Information System (INIS)

    Schleich, Joachim |; Betz, Regina; Rogge, Karoline |

    2007-01-01

    The EU Emission Trading Scheme (EU ETS) for CO 2 -emissions from energy and industry installations reflects a paradigm shift towards market-based instruments for environmental policy in the EU. The centerpieces of the EU ETS are National Allocation Plans (NAPs), which individual Member States (MS) design for each phase. NAPs state the total quantity of allowances available in each period (ET-budget) and determine how MS allocate allowances to individual installations. The NAPs thus govern investments and innovation in energy efficient technologies and the energy sector. In terms of distribution, they predetermine winners and losers. In this paper we analyze and evaluate 25 NAPs submitted to the European Commission (EC) for phase 2 (2008-2012) of the EU ETS. At the macro level, we assess whether the submitted ET-budgets are stringent, and whether they imply a cost-efficient split of the required emission reductions between the EU ETS sectors (energy and industry) and the remaining sectors (transportation, tertiary and households). Comparing the submitted ET-budgets with those already approved by the EC suggests that the EC's decisions significantly improved the effectiveness and economic efficiency of the EU ETS. But given the high share of Kyoto Mechanisms companies are allowed to use, the EU ETS is unlikely to require substantial emission reductions within the EU. At the micro level, we assess (across countries and phases) the allocation methods for existing and new installations, for closures and for clean technologies. A comparison of the NAPs for the second phase and the first phase (2005-2007) provides insights into the (limited) adaptability and flexibility of the scheme. The findings provide guidance for the future design of the EU ETS and applications to other sectors and regions

  1. EU Emission Allowances and the stock market Evidence from the electricity industry

    International Nuclear Information System (INIS)

    Oberndorfer, Ulrich

    2009-01-01

    This paper constitutes - to our best knowledge - the first econometric analysis on stock market effects of the EU Emission Trading Scheme (EU ETS). Our results suggest that EU Emission Allowance (EUA) price developments matter to the stock performance of electricity firms: EUA price changes and stock returns of the most important European electricity corporations are shown to be positively related. This effect does not work asymmetrically, so that stock markets do not seem to react differently to EUA appreciations in comparison to depreciations. The carbon market effect is shown to be both time- and country-specific: It is particularly strong for the period of EUA market shock in early 2006, and differs with respect to the countries where the electricity corporations analysed are headquartered. Stock market reactions to EUA volatility could not be shown. (author)

  2. Emissions Trading: Trends and Prospects

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2007-07-01

    This paper provides the latest developments of announced, proposed and existing greenhouse gas emissions trading schemes (ETS) around the world since 2006. It also examines different potential design options for ETS (e.g. coverage, allocation mode, provision for offsets), and how these options are treated in the existing, announced or proposed schemes.

  3. Emissions trading and innovation in the German electricity industry

    Energy Technology Data Exchange (ETDEWEB)

    Cames, Martin

    2010-07-01

    One major objective of the introduction of emissions trading in the European Union was to promote innovation towards mitigating climate change. Focusing on the German electricity industry, the extent to which this objective has been achieved up to now and how the design of the trading scheme could be improved towards achieving the intended objective shall be analyzed in this thesis. These questions are tackled in the thesis from a theoretical and an empirical perspective. The theoretical analysis was largely based on neoclassical environmental economics by using an algebraic model which allowed for comparison of the relevant companies' profits under various configurations of the analyzed design options. The empirical analysis was grounded on two surveys of the electricity industry - one before the start of emissions trading, the other after two and a half years of experience - which enabled identification of the concrete changes in the companies' perceptions and attitudes towards innovation due to the introduction of emissions trading. The analysis reveals some indications that the instrument has basically functioned as originally intended although it has certainly not yet developed its full potential in terms of promoting innovation towards a more climate friendly electricity system. From an environmental innovation perspective the following improvements are essential: (1) Closure provisions should be abolished as soon as possible because they basically extend the lifetime of old installations and thus rather delay innovation. (2) Fuel-specific allocation to new entrants should also be abandoned since it eliminates - at least partly - the incentives to shift investments towards technologies which use more carbon friendly fuels such as natural gas or biomass. (3) Introducing full auctioning for the electricity industry would remedy both of the above-mentioned weaknesses and at the same time eliminate the windfall profit generated by free allocation of allowances

  4. Emissions trading and innovation in the German electricity industry

    Energy Technology Data Exchange (ETDEWEB)

    Cames, Martin

    2010-07-01

    One major objective of the introduction of emissions trading in the European Union was to promote innovation towards mitigating climate change. Focusing on the German electricity industry, the extent to which this objective has been achieved up to now and how the design of the trading scheme could be improved towards achieving the intended objective shall be analyzed in this thesis. These questions are tackled in the thesis from a theoretical and an empirical perspective. The theoretical analysis was largely based on neoclassical environmental economics by using an algebraic model which allowed for comparison of the relevant companies' profits under various configurations of the analyzed design options. The empirical analysis was grounded on two surveys of the electricity industry - one before the start of emissions trading, the other after two and a half years of experience - which enabled identification of the concrete changes in the companies' perceptions and attitudes towards innovation due to the introduction of emissions trading. The analysis reveals some indications that the instrument has basically functioned as originally intended although it has certainly not yet developed its full potential in terms of promoting innovation towards a more climate friendly electricity system. From an environmental innovation perspective the following improvements are essential: (1) Closure provisions should be abolished as soon as possible because they basically extend the lifetime of old installations and thus rather delay innovation. (2) Fuel-specific allocation to new entrants should also be abandoned since it eliminates - at least partly - the incentives to shift investments towards technologies which use more carbon friendly fuels such as natural gas or biomass. (3) Introducing full auctioning for the electricity industry would remedy both of the above-mentioned weaknesses and at the same time eliminate the windfall profit generated by free allocation of

  5. An evaluation of the use of mobile source emissions trading: Locomotive case study

    International Nuclear Information System (INIS)

    West, W.R.; Brazell, M.M.

    1993-01-01

    There are many proposals for generating mobil source credits for use by stationary and other sources. This paper examines the benefits and practicality of including locomotive rail emissions in proposed emissions trading programs in california. In particular, this paper examines (1) if trading of locomotive rail emissions will result in lower compliance costs for railroads than traditional open-quotes command and controlclose quotes approaches, and (2) if emissions trading programs provide large enough incentives to entice railroads to seek to meet or exceed expected emissions reduction open-quotes command and controlclose quotes targets. The paper also examines under what circumstances stationary sources would be willing to purchase mobile source credits from railroads, in order to offset some of the stationary source's emissions reductions requirements. Stated simply, this analysis examines whether proposed trading programs offer enough benefits to both trading partners to warrant their use

  6. The EU system for emissions trading after year 2012; EU:s system foer handel med utslaeppsraetter efter 2012

    Energy Technology Data Exchange (ETDEWEB)

    Normand, Mathias; Mjureke, David (eds.)

    2007-01-15

    achieve emission reductions in line with Council Conclusions (7619/1/05) in the form of total emission reductions of the order of 15-30 % in the industrialised countries by 2020. Sweden should press for the Scheme to be linked with other trading schemes, subject to retention of climate integrity. Linking can strengthen global climate policy ties and influence countries not having internationally binding climate commitments towards participating in some climate policy agreement. Linking also helps to counter international distortion of competition. There should be considerable opportunities for the use of CDM (or equivalent) credits in the Scheme, given that the EU has strict commitments on emission reductions. In order to ensure the system's climate integrity and competition neutrality, efforts should be aimed at ensuring that the total quantity of allowances in the Trading Scheme is decided directly at EU level (i.e. top-down), instead of as today starting from national allocation plans (i.e. bottom-up). Sweden should promote continued expansion of the Scheme to other sectors and for other gases. In 2013, it should be expanded to include emissions of carbon dioxide and PFC from primary and secondary aluminium production, carbon dioxide from certain chemical industry sectors, nitrous oxide from certain chemical industry sectors and methane from active coal mines. The European road transport sector can be included in the Scheme. However, this will pose challenges in respect of the effects on industrial competitiveness and developments within the road transport sector. In order to be able to adopt a firm position in the matter of how the road transport sector should be treated in relation to the EU ETS, Sweden should initiate in-depth studies of consequences of different options, including a separate trading scheme for the European transport sector. Purely biofuelled combustion installations should be excluded from the Scheme, and the monitoring requirements for pure

  7. Trade pattern change impact on industrial CO2 emissions in Taiwan

    International Nuclear Information System (INIS)

    Wu, Jung-Hua; Huang, Yun-Hsun; Chen, Yen-Yin

    2007-01-01

    Input-output structural decomposition analysis (I-O SDA) is applied in this paper to analyze the sources of change in industrial CO 2 emissions in Taiwan from 1989 to 2001. Owing to the fact that Taiwan is an export-oriented, trade-dependent economy, the focus is on trade transformation over the past decade and its effect over industrial CO 2 emissions. Change in trade patterns has significantly impacted many aspects of the Taiwan economy, subsequently resulting in various influences on industrial CO 2 emissions, as shown by empirical analysis results. Change in export level increased industrial CO 2 emissions, above all other effects, by 72.1%. However, changes in export mix and import coefficients imposed effects of dragging down industrial CO 2 emissions by 5.7% and 11.7%, respectively. (author)

  8. Emission reduction trading - a power marketer`s perspective

    Energy Technology Data Exchange (ETDEWEB)

    Stewart, M. [Powerex Inc., Vancouver, BC (Canada)

    1999-10-01

    The current situation , and the short-term and long-term outlook in emission reduction trading are reviewed from the point of view of a power marketer. The author`s view is that while the concept of emission reduction credit (ERC) is easy enough to understand, i.e. a series of measures to reduce carbon dioxide production and enhance carbon sequestration, there is no standard definition, although there are a number of models under consideration. What is being sought is clear ownership and title, a clear understanding of what qualifies as a credit, credit for early action, commodity specifications and the ability to hedge. The author predicts that in the short-tem, industry will experiment with different types of transactions to gain experience and seek partners who are willing to share risk and development cost. In the longer-term, emission reduction credits will be bought and sold as commodities and traded, swapped or exchanged as part of a portfolio in bilateral trade transactions, and used in hedging against future liabilities.

  9. Electricity and emission allowance markets from Finnish viewpoint. Study

    International Nuclear Information System (INIS)

    Kara, M.

    2006-05-01

    During 1995.2005 the Nordic energy system has experienced two major changes, the opening of the electricity market for competition and emissions trading within the EU. The European Union's emissions trading scheme (EU ETS) that began operating at the beginning of 2005 has weakened the competitiveness of Finnish electricity production and raised electricity prices. Most electricity producers have accumulated large profits thanks to higher prices. The payers have been nearly all electricity users. This report studies the effects of emissions trading on the electricity market and the functionality of the power market. Very little investment has been made in power production capacity in the Nordic countries over the past ten years. Considerable increases have mainly been made in Danish wind power capacity. Simultaneously, the total consumption of electricity and maximum system load have increased more than installed capacity has grown. In the next few years the power and energy balances may be threatened. In previous years, Finland has often been separated as its own market price area on the Nordic power exchange. The formation of price areas has been affected by the limited capacity in transmission interconnectors, network reparation work and the operating method of the Swedish national system operator, Svenska Kraftnaet (transferring domestic bottlenecks to the borders). This study reviews the scale of price differences and the effect on market activities. On the common Nordic electricity market, Finnish coal and peat condensing power capacity is mainly used during poor precipitation years. These plants were once built for base load production. Carbon dioxide emissions trading has further weakened the competitiveness of these plants. The biggest problem for the Nordic power exchange, Nord Pool, is regarded to be that market concentration in electricity production is high. Market concentration decreases the investment willingness of existing players as new power

  10. European emissions trading - the business perspective

    International Nuclear Information System (INIS)

    Pocklington, D.

    2002-01-01

    Annex I parties to the Kyoto Protocol will commit to reducing the emissions of the basket of greenhouse gases by the equivalent of 135 MtC by the first commitment period of 2008-2012. Within the overall target, the EU has agreed to an average reduction of 8%, although this is subject to burden sharing within an EU ''bubble'', in which there are substantial differences in Member States' allocations. The instruments for reduction are emissions trading, industrial country joint implementation and clean development mechanism. By their nature, market instruments, such as emissions trading, are reliant upon the efficient operation of the market, which in turn depends upon the full involvement of the maximum number of participants to ensure liquidity. Although emissions trading has been generally welcomed by industry, when the proposals were published, many representative organisations expressed reservations concerning its format and details. The position papers of those organisations reviewed in this article demonstrate that within industry there is a high degree of unanimity on the majority of the critical issues within the current proposal, and agreement on the components that should be included in the final version. If the Commission's ambitious timetable is to be achieved, significant changes will need to be made to the proposal, for it is unlikely to achieve early adoption in its present form, and the longer the process takes, the more the national schemes will have the opportunity to develop and ultimately shape the EU scheme that is eventually agreed. In this respect, there certainly will be ''early mover advantage'' to those Member States that have or are currently establishing their own schemes, and have the requisite political weight to impose their views. (author)

  11. Revisiting the emissions-energy-trade nexus: evidence from the newly industrializing countries.

    Science.gov (United States)

    Ahmed, Khalid; Shahbaz, Muhammad; Kyophilavong, Phouphet

    2016-04-01

    This paper applies Pedroni's panel cointegration approach to explore the causal relationship between trade openness, carbon dioxide emissions, energy consumption, and economic growth for the panel of newly industrialized economies (i.e., Brazil, India, China, and South Africa) over the period of 1970-2013. Our panel cointegration estimation results found majority of the variables cointegrated and confirm the long-run association among the variables. The Granger causality test indicates bidirectional causality between carbon dioxide emissions and energy consumption. A unidirectional causality is found running from trade openness to carbon dioxide emission and energy consumption and economic growth to carbon dioxide emissions. The results of causality analysis suggest that the trade liberalization in newly industrialized economies induces higher energy consumption and carbon dioxide emissions. Furthermore, the causality results are checked using an innovative accounting approach which includes forecast-error variance decomposition test and impulse response function. The long-run coefficients are estimated using fully modified ordinary least square (FMOLS) method, and results conclude that the trade openness and economic growth reduce carbon dioxide emissions in the long run. The results of FMOLS test sound the existence of environmental Kuznets curve hypothesis. It means that trade liberalization induces carbon dioxide emission with increased national output, but it offsets that impact in the long run with reduced level of carbon dioxide emissions.

  12. Trading for a better environment. Feasibility of CO2 emission trade in the Netherlands

    International Nuclear Information System (INIS)

    Kolk, J. van der; Harmsen, H.

    2002-01-01

    July 1, 2000, the Committee CO2 trade was initiated by the Dutch Minister of Housing, Spatial Planning and the Environment (VROM) to investigate the desirability and feasibility of a national system for the trade of CO2 emission. Other greenhouse gases than carbon dioxide are not taken into account [nl

  13. Abatement Costs vs. Compliance Costs in Multi-Period Emissions Trading - The Firms' Perspective

    OpenAIRE

    Bode, Sven

    2003-01-01

    Greenhouse gas emission trading has become more and more important in the context of climate change. Recently, a discussion on trading on entity (i.e. company) level has started. Emitters likely to be obliged to participate have argued for an initial allocation of the emission rights free of charge. I analyse the implication of such an allocation based on historical emissions and on benchmarks in multi-period emission trading. Different allocation rules for successive periods are applied, nam...

  14. The future of emissions trading in light of the acid rain experience

    International Nuclear Information System (INIS)

    McLean, B.J.; Rico, R.

    1995-01-01

    The idea of emissions trading was developed more than two decades ago by environmental economists eager to provide new ideas for how to improve the efficiency of environmental protection. However, early emissions trading efforts were built on the historical open-quotes command and controlclose quotes infrastructure which has dominated U.S. environmental protection until today. The open-quotes command and controlclose quotes model initially had advantages that were of a very pragmatic character: it assured large pollution reductions in a time when large, cheap reductions were available and necessary; and it did not require a sophisticated government infrastructure. Within the last five years, large-scale emission trading programs have been successfully designed and started that are fundamentally different from the earlier efforts, creating a new paradigm for environmental control just when our understanding of environmental problems is changing as well. The purpose of this paper is to focus on the largest national-scale program--the Acid Rain Program--and from that experience, forecast when emission trading programs may be headed based on our understanding of the factors currently influencing environmental management. The first section of this paper will briefly review the history of emissions trading programs, followed by a summary of the features of the Acid Rain Program, highlighting those features that distinguish it from previous efforts. The last section addresses the opportunities for emissions trading (and its probable future directions)

  15. Auction design for the allocation of carbon emission allowances: uniform or discriminatory price?

    DEFF Research Database (Denmark)

    Cong, Ronggang; wei, yi-ming

    2010-01-01

    Only four states used auction in Phase Ⅰ (2005-2007) of the European Union Emission Trading System, of which four used a uniform-price sealed auction format. Here we discuss whether the auction should adopt a uniform-price or discriminatory-price format using an agent-based carbon allowances...... auction model established for the purpose. The main conclusions are as follows: (1) when carbon allowances are relatively scarce, the government should use a discriminatory-price auction; when carbon allowances are relatively abundant, the government should use a uniform-price auction. (2) Uncertainty......) The uniform-price auction is relatively insensitive to market structure. However, a monopoly market is more likely to develop under the discriminatory-price auction format. The results of the model have some policy implications for designing carbon market mechanisms in the future....

  16. Systems for carbon trading. An overview

    International Nuclear Information System (INIS)

    Hasselknippe, Henrik

    2003-12-01

    This paper focuses on the increasing number of regional, national and international systems for trading and transfer of greenhouse gas emission allowances and emission reduction credits. The paper will serve as a platform for further discussions on the development of the international carbon trading market. The analysis builds on the International Emissions Trading Association (IETA) Trading Schemes Database, which has been developed by Point Carbon, covering all known trading schemes and programs. A full overview of all existing trading schemes and proposals is presented, showing inter alia the outreach and judicial nature of the systems, the range and nature of emission reduction or credit purchase targets, allocation methods used, links to external systems, and possibilities for the use of project-based credits. A comparative assessment is performed on a number of design criteria, allowing for conclusions to be drawn on the level of harmonisation of these systems, and the identification of convergence or divergence of important operational features. The systems covered in the analysis display considerable variation when it comes to key design criteria and functionality. A rapid integration of many of the planned and active systems seems likely following the agreement on the EU emissions trading scheme, and will be further accelerated if the Kyoto Protocol is ratified

  17. The feasibility of domestic CO2 emissions trading in Poland

    International Nuclear Information System (INIS)

    Missfeldt, F.; Hauff, J.

    2000-09-01

    refineries, and with them the growing CO 2 emissions from transport, seem possible. Such a pilot program would allow firms and the policy maker to gather relevant experiences for the possible future introduction of a comprehensive system and for the emerging international emissions trading system. To determine whether a pilot system is desirable, however, an extensive and comparative analysis of different climate protection policy options is still needed for Poland. It should include a close look at the implications of EU climate protection policies and the effects of the liberalization of international electricity markets on domestic policy options. (au)

  18. An approach to evaluating the economic impact of emissions trading

    International Nuclear Information System (INIS)

    Lieu, S.; Johnson, S.L.; Dabirian, S.

    1993-01-01

    The command-and-control system to air quality controls is a mixture of technology-forcing standards for existing sources and offset for new sources. More stringent controls are required to achieve the ambient air quality standards in non-attainment urban areas which have been conformed with burgeoning economic growth. Due to the economy of scale and locale of polluting sources, some sources can implement these controls in a more cost-effective manner than others. In order to minimize the control costs of regulated sources, trading of emissions has been stipulated and has occurred among power plants to curb acid rain at the national level. Southern California is currently embarking on the trading of oxides of nitrogen, reactive organic compounds, and oxides of sulfur among existing and new stationary sources. New economic opportunities for entrepreneurs with advances control technology will arise under emissions trading. Trading will also result in the redistribution of emissions geographically and across industries. Through the linkage of a linear-programming trading model, a regional econometric model, and an urban airshed model, the impact of trading on the Southern California economy can thus be examined. This paper describes a framework which can be used to compare and contrast RECLAIM with the command-and-control system; and discusses a few issues which may arise in a trading market and how these issues can be dealt with are also examined

  19. Emissions Trading: The Ugly Duckling in European Climate Policy?

    Energy Technology Data Exchange (ETDEWEB)

    Wraake, Markus

    2009-07-15

    The initial years of the European Union's Emissions Trading System (EU ETS) have provided a large-scale testing ground for trading of a new environmental commodity, carbon dioxide. This paper provides an overview of the origins and characteristics of the EU ETS. It then goes on to analyse the most contentious issues that have been discussed in the economics literature and in the public debate surrounding the trading system. The lessons learned are diverse and not all experiences are positive. Nevertheless, invaluable information has been gained from the EU ETS and policy makers in Europe and elsewhere would be wise to make use of it, be they supporters of emissions trading or sceptics to such policies. The paper concludes with a look toward the future, highlighting some upcoming revisions of the EU ETS and at what issues remain unresolved

  20. Potential impact of (CET) carbon emissions trading on China’s power sector: A perspective from different allowance allocation options

    DEFF Research Database (Denmark)

    Cong, Ronggang; Wei, Yi-Ming

    2010-01-01

    of traditional methods. We establish an agent-based model, CETICEM (CET Introduced China Electricity Market), of introduction of CET to China. In CETICEM, six types of agents and two markets are modeled. We find that: (1) CET internalizes environment cost; increases the average electricity price by 12......In Copenhagen climate conference China government promised that China would cut down carbon intensity 40–45% from 2005 by 2020. CET (carbon emissions trading) is an effective tool to reduce emissions. But because CET is not fully implemented in China up to now, how to design it and its potential......%; and transfers carbon price volatility to the electricity market, increasing electricity price volatility by 4%. (2) CET influences the relative cost of different power generation technologies through the carbon price, significantly increasing the proportion of environmentally friendly technologies; expensive...

  1. Putting a price on carbon. Econometric essays on the European Union emissions trading scheme and its impacts

    Energy Technology Data Exchange (ETDEWEB)

    Aatola, P.

    2013-06-01

    This dissertation examines the main instrument of the European Union climate policy, the emissions trading scheme (EU ETS) during its first years. Emission trading provides a cost-efficient way to reduce emissions. It creates a price on carbon dioxide and thereby incentives for cleaner production. The four empirical studies in this dissertation provide new information on the price determination in the emissions trading market, market efficiency and market interactions with the electricity markets. This information is useful for many purposes. It benefits the market participants who make choice between trading of emission allowances in the market and abatement of emissions. For the authorities and policy planners the price signal and the efficiency of the markets reveal unique real-time information on marginal abatement costs, impacts of policy decisions and impacts of institutional design of this policy instrument. To be a well-functioning policy instrument the EU ETS should create a credible price signal and efficient markets for trading allowances. The objective of this dissertation is to analyze the EU ETS markets and the price of the European Union emissions allowance, EUA, with econometric time series models. A large data set on market fundamentals is used to analyze the price series. The results of this dissertation reveal that EU ETS is functions well. Carbon has a price that reflects to a large extent the market fundamentals in the study period. The markets are maturing even if not fully informational efficient yet. Interactions with electricity markets are close. The impact of price of carbon on the price of electricity is positive but spatially uneven. In the long run, also climate change affects the electricity bill. The first study of this dissertation investigates the price determination in the market. The empirical results based on years 2005-2011 show that the price of the EUA is largely determined by the market fundamentals. Especially the price of

  2. Investment appraisal of heat and power plants within an emissions trading scheme. Final Report of the INVIS Project

    International Nuclear Information System (INIS)

    Laurikka, H.; Pirilae, P.

    2005-04-01

    The opportunity cost for carbon dioxide (CO 2 ) emissions has become a new factor influencing investments in heat and power production capacity globally, and in particular in countries with a greenhouse gas emissions trading system, such as the European Union Emissions Trading Scheme (EU ETS). There is a considerable power capacity investment need in the coming decades in Finland, in Europe and globally. As the economic lifetime of an investment in heat and power capacity typically ranges from 20-40 years, 'carbon finance' and the EU ETS therefore introduce a considerable and fundamental price risk to the investment problem. In Europe, the price risk is present in all investments and divestments of power production licences or capacity, be it a green-field plant, a retrofit of an existing plant or an acquisition. The objective of the INVIS research project was to extend the knowledge on strategic implications of emissions trading in investments into heat and power generation. This report gives an overview on the main findings of the project. The focus of INVIS project was on (1) quantitative investment appraisal and (2) methods rather than tools or parameter values. Particular attention in the INVIS project was paid to the incorporation of emissions trading in new methods of investment appraisal, which aim at taking into account the value of real options, rights to postpone or revise decisions. The EU ETS modifies the quantitative investment appraisal of heat and power plants directly through the emission allowance price and the number of free allowances and indirectly through impacts on output prices, input prices, taxation, and subsidies. From the risk perspective, the most problematic impact seems to be the regulatory uncertainty in the number of free allowances, which can turn out to be a barrier for investment in fossil-fuel-fired thermal power plants - even combined-cycle gas turbines. The emission allowance price is a stochastic variable, which implies it is

  3. A Ten-Year Rule to guide the allocation of EU emission allowances

    International Nuclear Information System (INIS)

    Ahman, Markus; Burtraw, Dallas; Kruger, Joseph; Zetterberg, Lars

    2007-01-01

    Member States in the European Union (EU) are responsible for National Allocation Plans governing the initial distribution of emission allowances in the CO 2 Emission Trading System, including rules governing allocations to installations that close and to new entrants. The European Commission has provided guidelines to discourage the use of allocation methodologies that provide incentives affecting firms' compliance behavior, for example by rewarding one type of compliance investment over another. We find that the treatment of closures and new entrants by Member States is inconsistent with the general guidelines provided by the EU. We propose stronger EU guidance regarding closures and new entrants, a more precise compensation criterion on which to justify free allocations, and a Ten-Year Rule as a component of future EU policy that can guide a transition from current practice to an approach that places greater weight on efficiency

  4. Impact of Trade Openness and Sector Trade on Embodied Greenhouse Gases Emissions and Air Pollutants

    OpenAIRE

    Islam, Moinul; Kanemoto, Keiichiro; Managi, Shunsuke

    2016-01-01

    The production of goods and services generates greenhouse gases (GHGs) and air pollution both directly and through the activities of the supply chains on which they depend. The analysis of the latter—called embodied emissions—in the cause of internationally traded goods and services is the subject of this paper. We find that trade openness increases embodied emissions in international trade (EET). We also examine the impact of sector trade on EET. By applying a fixed-effect model using large...

  5. Emissions trading for business and industry. A new instrument to achieve environmental goals

    International Nuclear Information System (INIS)

    2001-05-01

    Key components of the Kyoto Protocol are the flexible instruments or mechanisms: namely trading emissions, Joint Implementation and the Clean Development Mechanism. These mechanisms make it possible to trade in CO2 emissions or emission permits, thereby enabling the Kyoto Protocol targets that have been imposed on all states, to be attained in the most cost-effective way. Although the Kyoto targets are binding only on states, it is likely that governments will pass responsibility for meeting them on to specific target groups and impose absolute or relative (energy efficiency or CO2 per unit) targets on them. Flexible instruments, especially Joint Implementation (JI) and the Clean Development Mechanism (CDM), can also be used by companies to achieve their emission targets. Until now, the VNO-NCW Confederation of Netherlands Industry has generally been positive about the use of flexible instruments. However, various developments have persuaded the VNO-NCW that it is a good idea to examine more specific questions with regard to flexible instruments. First, the CO2 trade committee (the Vogtlaender Committee) has been asked to issue recommendations concerning the possibilities inherent in a national system for emissions trading. A basic variant will be explored, in which protected sectors (households, the service industry, small industrial enterprises) will be assigned absolute ceilings and internationally operating companies will be assigned with relative targets. Second, in March 2000 the European Commission published a Green Paper on trade in greenhouse gas emissions within the European Union in order to launch an European Union (EU)-wide debate on the introduction of an EU system for trade in emissions in 2005. In common with the Netherlands, various EU member states are studying the possibilities for phasing in a system of trade in CO2 emissions; only in Denmark has such a system actually been introduced. In industry, too, many initiatives have been taken in

  6. Restricted linking of emissions trading systems

    NARCIS (Netherlands)

    Schneider, Lambert; Lazarus, Michael; Lee, Carrie; Asselt, van Harro

    2017-01-01

    With over 17 emissions trading systems (ETSs) now in place across four continents, interest in linking ETSs is growing. Linking ETSs offers economic, political, and administrative benefits. It also faces major challenges. Linking can affect overall ambition, financial flows, and the location and

  7. Responsibility and trade emission balances : An evaluation of approaches

    NARCIS (Netherlands)

    Serrano, Monica; Dietzenbacher, Erik

    2010-01-01

    This paper compares two concepts to evaluate the international responsibility of a country with respect to its emissions. Using a multi-regional input-output model, we show that the trade emission balance and the responsibility emission balance yield the same result. In practical work, however, a

  8. Project baselines and boundaries for project-based GHG emission reduction trading : a report to the Greenhouse Gas Emission Trading Pilot Program

    Energy Technology Data Exchange (ETDEWEB)

    Lazarus, M.; Kartha, S.; Bernow, S. [Tellus Inst., Boston, MA (United States)

    2001-04-01

    One of the great challenges for policy makers in the twenty first century is turning out to be global climate change caused by greenhouse gas emissions. Recent setbacks in international negotiations do not preclude the imposition of national emission targets. One option being studied to increase the economic efficiency of meeting these targets is the creation of emissions trading markets. The exploration of credit trading in the field of greenhouse gas emissions is carried out under the banner of the Greenhouse Gas Emission Reduction Trading (GERT) Pilot Project. One of its objectives is the development of the institutional framework required for the Clean Development Mechanism (CDM), Joint Implementation (JI), and other international credit trading programs. To ensure credits are awarded to projects in a fair and transparent manner, technical, methodological, and administrative processes must be put in place. The determination of project baselines and project boundaries represent two of the main challenges confronting policy makers in awarding the credits. A review of baseline and boundary methods was initiated by GERT, and this report also contains a description of the main advantages and drawbacks of the various methods being considered. Lessons learned and opportunities are especially important for GERT to provide proper guidance to developers. The context and rationale for baselines and boundary setting are first explored in this report, as well as the issues of importance, and common criteria for the evaluation of alternative methods. The principal options for baseline determination, advantages and disadvantages, and applicability in various contexts were reviewed in section 2. The topic of avoided electricity use, and how to set consistent baselines for it are discussed in section 3. Project boundary is the topic of section 4, including leakage, upstream and downstream emissions, rebound and positive spillover effects, and means by which these issues can de

  9. Analysis and Design of International Emission Trading Markets Applying System Dynamics Techniques

    Science.gov (United States)

    Hu, Bo; Pickl, Stefan

    2010-11-01

    The design and analysis of international emission trading markets is an important actual challenge. Time-discrete models are needed to understand and optimize these procedures. We give an introduction into this scientific area and present actual modeling approaches. Furthermore, we develop a model which is embedded in a holistic problem solution. Measures for energy efficiency are characterized. The economic time-discrete "cap-and-trade" mechanism is influenced by various underlying anticipatory effects. With a systematic dynamic approach the effects can be examined. First numerical results show that fair international emissions trading can only be conducted with the use of protective export duties. Furthermore a comparatively high price which evokes emission reduction inevitably has an inhibiting effect on economic growth according to our model. As it always has been expected it is not without difficulty to find a balance between economic growth and emission reduction. It can be anticipated using our System Dynamics model simulation that substantial changes must be taken place before international emissions trading markets can contribute to global GHG emissions mitigation.

  10. Carbon Footprint Management of Road Freight Transport under the Carbon Emission Trading Mechanism

    Directory of Open Access Journals (Sweden)

    Jin Li

    2015-01-01

    Full Text Available Growing concern over environmental issues has considerably increased the number of regulations and legislation that aim to curb carbon emissions. Carbon emission trading mechanism, which is one of the most effective means, has been broadly adopted by several countries. This paper presents a road truck routing problem under the carbon emission trading mechanism. By introducing a calculation method of carbon emissions that considers the load and speed of the vehicle among other factors, a road truck routing optimizing model under the cap and trade mechanism based on the Travelling Salesman Problem (TSP is described. Compared with the classical TSP model that only considers the economic cost, this model suggests that the truck routing decision under the cap and trade mechanism is more effective in reducing carbon emissions. A modified tabu search algorithm is also proposed to obtain solutions within a reasonable amount of computation time. We theoretically and numerically examine the impacts of carbon trading, carbon cap, and carbon price on truck routing decision, carbon emissions, and total cost. From the results of numerical experiments, we derive interesting observations about how to control the total cost and reduce carbon emissions.

  11. Pathways of human development and carbon emissions embodied in trade

    Science.gov (United States)

    Steinberger, Julia K.; Timmons Roberts, J.; Peters, Glen P.; Baiocchi, Giovanni

    2012-02-01

    It has long been assumed that human development depends on economic growth, that national economic expansion in turn requires greater energy use and, therefore, increased greenhouse-gas emissions. These interdependences are the topic of current research. Scarcely explored, however, is the impact of international trade: although some nations develop socio-economically and import high-embodied-carbon products, it is likely that carbon-exporting countries gain significantly fewer benefits. Here, we use new consumption-based measures of national carbon emissions to explore how the relationship between human development and carbon changes when we adjust national emission rates for trade. Without such adjustment of emissions, some nations seem to be getting far better development `bang' for the carbon `buck' than others, who are showing scant gains for disproportionate shares of global emissions. Adjusting for the transfer of emissions through trade explains many of these outliers, but shows that further socio-economic benefits are accruing to carbon-importing rather than carbon-exporting countries. We also find that high life expectancies are compatible with low carbon emissions but high incomes are not. Finally, we see that, despite strong international trends, there is no deterministic industrial development trajectory: there is great diversity in pathways, and national histories do not necessarily follow the global trends.

  12. Firm performance and employment in the EU emissions trading scheme: An empirical assessment for Germany

    International Nuclear Information System (INIS)

    Anger, Niels; Oberndorfer, Ulrich

    2008-01-01

    This paper empirically investigates the role of the EU Emissions Trading Scheme (EU ETS) for firm performance and employment in Germany. We provide an overview of relative allowance allocation within the EU ETS as well as an econometric analysis for a large sample of German firms covered by the scheme in order to assess the impacts of EU emissions regulation on both firm revenues and employment. The dataset indicates that the EU ETS was in an overall long position in 2005, although allowance allocation was very heterogeneous across member states. Our econometric analysis suggests that, within the first phase of the EU ETS, relative allowance allocation did not have a significant impact on firm performance and employment of regulated German firms

  13. Emissions trading and competitive positions. The European Proposal for a Directive establishing a Framework for Greenhouse Gas Emissions Trading and Methods for the initial Allocation of Pollution Rights

    International Nuclear Information System (INIS)

    Grimeaud, D.; Peeters, M.

    2002-10-01

    The study on the intention to introduce emissions trading on a European Union level was conducted on the basis of the following three questions: Which methods can be used (by the Member States) to distribute the tradable emissions rights en which legal preconditions should be observed considering the EU-Treaty and the relevant directive proposal? Whenever necessary and possible international agreements on climate change and international trade law will be mentioned. Which safeguards are available for fair competition and which system of emissions trading is advisable in this perspective? How should the PSR (performance standard rate) system, which is preferred by industry, be valued? The structure of this study is as follows: in chapter 2 insight is given into the various methods that can be used to start an emissions trading system, i.e. the way tradable pollution rights are distributed (initial allocation). Chapter 3 will further examine the system of the initial allocation of pollution rights as it has been chosen in the proposal for the European directive. The aim is to give an exact qualification of the method of emissions trading, especially the method of initial allocation, that is used in the directive proposal. Chapter 4 examines whether safeguards are available to prevent competition distortions between firms that fall under the scope of the emissions trading scheme. Special attention will be given to conditions that result from the EU-Treaty in this context, such as the prohibition of state aid. In this chapter the international trade law will be dealt with as well. Chapter 5 will present an executive summary and the specific question whether the PSR-system is legally acceptable or maybe even recommendable, will be answered

  14. The downside of emissions trading

    International Nuclear Information System (INIS)

    Viialainen, M.

    2004-01-01

    High unemployment and redundancies are a major problem in Finland today, and the economic downturn has only intensified as a result of the weak dollar and low investments. The growth of the global economy and the expansion of the EU are likely to see the shift in production and jobs away from Finland to low- cost countries, such as China or the countries of Eastern Central Europe, only intensily. The cost burden imposed by emissions trading will be an added problem. The disproportionally high emission reduction demands placed on Finland within the EU could lead to the loss of as many as 15,000 jobs, according to some estimates

  15. Strategic research on the sustainable development cost of manufacturing industry under the background of carbon allowance and trade policy

    Science.gov (United States)

    Ma, Zhongmin; Cheng, Mengting; Wang, Mei

    2017-08-01

    The important subjects of energy consumption and carbon emission are manufacturing enterprises, with the deepening of international cooperation, and the implementation of carbon limit and trade policy, costs of manufacturing industry will rise sharply. How can the manufacturing industry survive in this reform, and it has to be a problem that the managers of the manufacturing industry need to solve. This paper analyses sustainable development cost connotation and value basis on the basis of sustainable development concept, discusses the influence of carbon allowance and trade policy for cost strategy of manufacturing industry, thinks that manufacturing industry should highlight social responsibility and realize maximization of social value, implement cost strategy the sustainable development, and pointed out the implementation way.

  16. Energy and emissions trading. Proceedings; Energie und Klimawandel. Tagungsband

    Energy Technology Data Exchange (ETDEWEB)

    Ehlers, Dirk; Wolffgang, Hans-Michael; Schroeder, Ulrich Jan (eds.)

    2010-07-01

    Within the 14th Muensteraner Foreign Trade legislation conference at 15th and 16th October, 2009 in Muenster (Federal Republic of Germany), the following lectures were held: (1) National and European energy policy (Dieter Kunhenn); (2) Trade, transport and distribution of energy - actual and future legal aspects (Markus J. Kachel); (3) Liberalization and regulation of energy services at multilateral and bilateral level (Christian Pitschas); (4) Legal protection for foreign direct investigations in the energy sector (Richard Kreindler); (5) Energy cartels in the light of the WTO law (Joerg Philipp Terhechte); (6) Subsidisation of renewable energy in the area of attention between WTO and EU subsidy law (Martin Lukas); (7) Legal aspects of pipeline through the Baltic Sea (Barbara Kaech); (8) Sustainability standards and their compatibility with the WTO law (Lorenz Franken); (9) Economic instruments between Kyoto and Kopenhagen - Quo vadis climate protection? (Benjamin Goeerlach); (10) Emissions rights trading with developing countries (Peter Ebsen); (11) Legal aspects of the European emissions rights trading (Stefan Altenschmidt).

  17. Impact of Carbon Quota Allocation Mechanism on Emissions Trading: An Agent-Based Simulation

    Directory of Open Access Journals (Sweden)

    Wei Jiang

    2016-08-01

    Full Text Available This paper establishes an agent-based simulation system of the carbon emissions trading in accordance with the complex feature of the trading process. This system analyzes the impact of the carbon quota allocation mechanism on emissions trading for three different aspects including the amount of emissions reduction, the economic effect on the emitters, and the emissions reduction cost. Based on the data of the carbon emissions of different industries in China, several simulations were made. The results indicate that the emissions trading policy can effectively reduce carbon emissions in a perfectly competitive market. Moreover, by comparing separate quota allocation mechanisms, we obtain the result that the scheme with a small extent quota decrease in a comprehensive allocation mechanism can minimize the unit carbon emission cost. Implementing this scheme can also achieve minimal effects of carbon emissions limitation on the economy on the basis that the environment is not destroyed. However, excessive quota decrease cannot promote the emitters to reduce emission. Taking into account that several developing countries have the dual task of limiting carbon emissions and developing the economy, it is necessary to adopt a comprehensive allocation mechanism of the carbon quota and increase the initial proportion of free allocation.

  18. International trade in carbon emission rights and basic materials: General equilibrium calculations for 2020

    International Nuclear Information System (INIS)

    Perroni, C.; Rutherford, T.F.

    1993-01-01

    Restrictions on CO 2 emissions affect international trade and the pattern of comparative advantage. This paper, based on calculations with a static general equilibrium model, suggests that international trade in carbon rights is a substitute for trade in energy-intensive goods, and thus international trading in carbon rights reduces sectoral effects of emission reductions. In our model, we surprisingly find that free riding by non-signatory countries may not render unilateral action ineffective. If the OECD unilaterally cuts global emissions by 5 per cent from 1990 levels by the year 2020, emission by non-OECD regions increase but offset less than 15 per cent of this cutback. Moreover, carbon taxes depress international oil prices and create incentives for increased trade in natural gas. 14 refs, 7 figs

  19. The Social Cost of Trading: Measuring the Increased Damages from Sulfur Dioxide Trading in the United States

    Science.gov (United States)

    Henry, David D., III; Muller, Nicholas Z.; Mendelsohn, Robert O.

    2011-01-01

    The sulfur dioxide (SO[subscript 2]) cap and trade program established in the 1990 Clean Air Act Amendments is celebrated for reducing abatement costs ($0.7 to $2.1 billion per year) by allowing emissions allowances to be traded. Unfortunately, places with high marginal costs also tend to have high marginal damages. Ton-for-ton trading reduces…

  20. The Kyoto Agreement: Trade and Design

    DEFF Research Database (Denmark)

    Svendsen, Gert Tinggaard

    1999-01-01

    The Kyoto Agreement from 1997 allows trade of CO2 emission quotas between the 38 industrialized countries which have committed themselves to an emission ceiling. However, it does not define how this potential trade system should be designed. The intention was to clarify these matters during the 1...

  1. Emission reduction trading - a power marketer's perspective

    Energy Technology Data Exchange (ETDEWEB)

    Stewart, M. (Powerex Inc., Vancouver, BC (Canada))

    1999-01-01

    The current situation , and the short-term and long-term outlook in emission reduction trading are reviewed from the point of view of a power marketer. The author's view is that while the concept of emission reduction credit (ERC) is easy enough to understand, i.e. a series of measures to reduce carbon dioxide production and enhance carbon sequestration, there is no standard definition, although there are a number of models under consideration. What is being sought is clear ownership and title, a clear understanding of what qualifies as a credit, credit for early action, commodity specifications and the ability to hedge. The author predicts that in the short-tem, industry will experiment with different types of transactions to gain experience and seek partners who are willing to share risk and development cost. In the longer-term, emission reduction credits will be bought and sold as commodities and traded, swapped or exchanged as part of a portfolio in bilateral trade transactions, and used in hedging against future liabilities.

  2. The feasibility of domestic CO{sub 2} emissions trading in Poland

    Energy Technology Data Exchange (ETDEWEB)

    Missfeldt, F. [ed.; Hauff, J.

    2000-10-01

    component to include oil refineries, and with them the growing CO{sub 2} emissions from transport, seem possible. Such a pilot program would allow firms and the policy maker to gather relevant experiences for the possible future introduction of a comprehensive system and for the emerging international emissions trading system. To determine whether a pilot system is desirable, however, an extensive and comparative analysis of different climate protection policy options is still needed for Poland. It should include a close look at the implications of EU climate protection policies and the effects of the liberalization of international electricity markets on domestic policy options. (au)

  3. China's foreign trade and climate change: A case study of CO2 emissions

    International Nuclear Information System (INIS)

    Yan Yunfeng; Yang Laike

    2010-01-01

    The globalization of trade has numerous environmental implications. Trade creates a mechanism for consumers to shift environmental pollution associated with their consumption to other countries. Carbon leakage exerts great influences on international trade and economy. Applying an input-output approach, the paper estimates the amount of carbon dioxide (CO 2 ) embodied in China's foreign trade during 1997-2007. It is found that 10.03-26.54% of China's annual CO 2 emissions are produced during the manufacture of export goods destined for foreign consumers, while the CO 2 emissions embodied in China's imports accounted for only 4.40% (1997) and 9.05% (2007) of that. We also estimate that the rest of world avoided emitting 150.18 Mt CO 2 in 1997, increasing to 593 Mt in 2007, as a result of importing goods from China, rather than manufacturing the same type and quantity of goods domestically. During 1997-2007, the net 'additional' global CO 2 emissions resulting from China's exports were 4894 Mt. Then, the paper divides the trade-embodied emissions into scale, composition and technical effect. It was found that scale and composition effect increased the CO 2 emissions embodied in trade while the technical effect offset a small part of them. Finally, its mechanism and policy implications are presented.

  4. Emission Trading as a Basis for new Bioenergy Business Concepts in the Baltic Sea Region

    International Nuclear Information System (INIS)

    Vesterinen, Pirkko; Helynen, Satu

    2006-01-01

    The new EU Emission Trading system started in the beginning of 2005. This system will bring new challenges, but also new opportunities for the energy market in the Baltic Sea Region (BSR) countries. Typically in some EU countries the decreasing of greenhouse gas emissions tends to be more expensive to achieve than in the others. This brings about new trade schemes that could be implemented in the BSR. One important way of reducing emissions is to replace fossil fuels with biomass-based fuels in large scale power and steam production. As the availability of biomass, price level of biomass, electricity and steam, and national subsidies and taxation are different in different countries, it may be economically viable to create a framework for international trade. The product to be traded may be e.g. wood fuel (either as logs and chips or in refined form like pellets), energy (electricity), green certificates or emission allowances. It is also possible to implement so-called JI (Joint Implementation) projects to reach the emission reduction targets.All the above mentioned options may be realised in different ways. The purpose of the project is to find win-win opportunities, in which both the exporting and importing countries/regions will get profit from the system. These positive impacts may be quite impressive in regional level, as they directly boost several business areas like fuel production and transport, equipment manufacturing and maintenance, plant construction, as well as energy production and use. In addition, the impacts cover also forestry and agriculture, by bringing new value and utilisation options for their by-products.The paper presents the first results of an on-going project which is co-financed by the EU programme BSR INTERREG III B. The two-year project started in the beginning of 2005, and the main results will be available in autumn 2006

  5. How Can Economies in Transition Pursue Emissions Trading or Joint Implementation?

    International Nuclear Information System (INIS)

    Missfeldt, F.; Villavicenco, A.

    2002-07-01

    Under the 1997 Kyoto Protocol, economies in transition are eligible for both emissions trading (Article 17) and joint implementation (Article 6). Guiding rules for implementing these mechanisms were decided through the Marrakech Accords in November 2001. These countries may benefit substantially from those mechanisms if they are implemented appropriately. However, with the departure of the USA from the Kyoto Protocol, the likely revenues from international emissions trading for the economies in transition are likely to be limited at least during the first commitment period. A key criterion on whether countries should undertake emissions trading is the comparison of projections of emissions until 2012 with the target under the Kyoto Protocol. For joint implementation, the investment climate and the emission reductions potential of a specific project are more important. Countries that are bound by the Kyoto Protocol need to implement a clear institutional structure, which includes a JI office or a position solely in charge of JI. Even if a country decides not to engage in JI, such an office could help guide possible foreign investors

  6. Responsibility and trade emission balances. An evaluation of approaches

    International Nuclear Information System (INIS)

    Serrano, Monica; Dietzenbacher, Erik

    2010-01-01

    This paper compares two concepts to evaluate the international responsibility of a country with respect to its emissions. Using a multi-regional input-output model, we show that the trade emission balance and the responsibility emission balance yield the same result. In practical work, however, a lack of data availability implies that the same technology assumption has been commonly adopted. In that case, also a third alternative exists, which simply evaluates the emissions embodied in the trade balance of the country. This third alternative yields the same results as the other two approaches at the aggregate level. At the level of individual products, however, the results are clearly different and it turns out that the third alternative answers a different question. That is, it is appropriate for measuring the emission content of the products that cross the border. In our empirical application, we consider Spain in 1995 and 2000, distinguishing nine different gases: CO 2 , CH 4 , N 2 O, SF 6 , HFCs, PFCs, SO 2 , NO x , and NH 3 . (author)

  7. Output-based allocations and revenue recycling. Implications for the New Zealand Emissions Trading Scheme

    International Nuclear Information System (INIS)

    Lennox, James A.; Nieuwkoop, Renger van

    2010-01-01

    The New Zealand Emissions Trading Scheme (NZ ETS) is more comprehensive in its coverage of emissions than schemes introduced or proposed to date in any other country in that it includes agricultural greenhouse gases, which account for half of New Zealand's total emissions. But, motivated by concerns for the international competitiveness of emissions-intensive, trade-exposed industrial and agricultural activities, current legislation provides for substantial ongoing free allocations to such activities, linked to their output. Here we use a computable general equilibrium model to analyse the impacts of output-based allocation, given the possibility of recycling net revenues to reduce prior distorting taxes. Unlike previous modelling studies of alternative NZ ETS designs, we allow for a more realistic modelling both of capital and labour supply. We find that, as suggested by theoretical results, interactions between the ETS and existing taxes are important. Given any level of output-based allocation, the negative macroeconomic impacts can be reduced by recycling net revenues as efficiently as possible. Less obviously, we find that there may be an optimal non-zero level of output-based allocation. This optimal level increases as the carbon price and/or factor supply elasticities increase, but decreases if revenues are recycled with greater efficiency. (author)

  8. Output-based allocations and revenue recycling. Implications for the New Zealand Emissions Trading Scheme

    Energy Technology Data Exchange (ETDEWEB)

    Lennox, James A. [Landcare Research NZ, Lincoln (New Zealand); Nieuwkoop, Renger van [Center for Energy Policy and Economy, Zuerich (Switzerland)

    2010-12-15

    The New Zealand Emissions Trading Scheme (NZ ETS) is more comprehensive in its coverage of emissions than schemes introduced or proposed to date in any other country in that it includes agricultural greenhouse gases, which account for half of New Zealand's total emissions. But, motivated by concerns for the international competitiveness of emissions-intensive, trade-exposed industrial and agricultural activities, current legislation provides for substantial ongoing free allocations to such activities, linked to their output. Here we use a computable general equilibrium model to analyse the impacts of output-based allocation, given the possibility of recycling net revenues to reduce prior distorting taxes. Unlike previous modelling studies of alternative NZ ETS designs, we allow for a more realistic modelling both of capital and labour supply. We find that, as suggested by theoretical results, interactions between the ETS and existing taxes are important. Given any level of output-based allocation, the negative macroeconomic impacts can be reduced by recycling net revenues as efficiently as possible. Less obviously, we find that there may be an optimal non-zero level of output-based allocation. This optimal level increases as the carbon price and/or factor supply elasticities increase, but decreases if revenues are recycled with greater efficiency. (author)

  9. Corporate intentions to participate in emission trading

    NARCIS (Netherlands)

    Pinkse, J.M.

    2007-01-01

    The adoption of the Kyoto Protocol in 1997 has led to increasing business interest in the issue of climate change. It has also created much uncertainty for companies, particularly about the role of trading in realizing emission reductions. This paper investigates what drives multinational

  10. Combined Heat and Power and Emissions Trading

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2008-07-01

    The aim of this IEA Information Paper is to help policy makers and other stakeholders understand the challenges facing the incorporation of high efficiency combined heat and power (CHP) into greenhouse gas (GHG) Emissions Trading Schemes (ETSs) -- and to propose options for overcoming them.

  11. EU Action against Climate Change. EU emissions trading. An open scheme promoting global innovation

    International Nuclear Information System (INIS)

    2005-01-01

    The European Union is committed to global efforts to reduce the greenhouse gas emissions from human activities that threaten to cause serious disruption to the world's climate. Building on the innovative mechanisms set up under the Kyoto Protocol to the 1992 United Nations Framework Convention on Climate Change (UNFCCC) - joint implementation, the clean development mechanism and international emissions trading - the EU has developed the largest company-level scheme for trading in emissions of carbon dioxide (CO2), making it the world leader in this emerging market. The emissions trading scheme started in the 25 EU Member States on 1 January 2005

  12. The effect of trade between China and the UK on national and global carbon dioxide emissions

    International Nuclear Information System (INIS)

    Li, You; Hewitt, C.N.

    2008-01-01

    We estimate the amount of carbon dioxide embodied in bi-lateral trade between the UK and China in 2004. Developing and applying the method of Shui and Harriss [2006. The role of CO 2 embodiment in US-China trade. Energy Policy 34, 4063-4068], the most recently available data on trade and CO 2 emissions have been updated and adjusted to calculate the CO 2 emissions embodied in the commodities traded between China and the UK. It was found that through trade with China, the UK reduced its CO 2 emissions by approximately 11% in 2004, compared with a non-trade scenario in which the same type and volume of goods are produced in the UK. In addition, due to the greater carbon-intensity and relatively less efficient production processes of Chinese industry, China-UK trade resulted in an additional 117 Mt of CO 2 to global CO 2 emissions in the same one year period, compared with a non-trade scenario in which the same type and volume of goods are produced in the UK. This represents an additional 19% to the reported national CO 2 emissions of the UK (555 Mt/y in 2004) and 0.4% of global emissions. These findings suggest that, through international trade, very significant environmental impacts can be shifted from one country to another, and that international trade can (but does not necessarily) result in globally increased greenhouse gas emissions. These results are additional to the environmental consequences of transporting goods, which are not robustly quantified here. (author)

  13. The impact of China's carbon allowance allocation rules on the product prices and emission reduction behaviors of ETS-covered enterprises

    International Nuclear Information System (INIS)

    Zhang, Yue-Jun; Wang, Ao-Dong; Tan, Weiping

    2015-01-01

    It is an important task for China to allocate carbon emission allowance to realize its carbon reduction target and establish carbon trading market. China has designed several allocation rules within seven pilot regions. What influence those rules may cause is closely related with the enthusiasm of emission trading scheme (ETS) covered enterprises' participation in carbon market, and more importantly, with the mechanism design and sustainable development of carbon market. For this purpose, the multi-stage profit model is developed to analyze the ETS-covered enterprises' product prices and emission reduction behaviors under different allocation rules. The results show that, first, under the rules of grandfathering, self-declaration and auctioning, when deciding the optimal product price and optimal carbon emission reduction, those enterprises may focus on maximizing current stage profit; however, under the rule of benchmarking, those enterprises may care more about the impact of current decisions on the profit in next stage. Second, the optimal product price policy is positively correlated with the price of the same kind products, consumers' low-carbon awareness and government subsidy. Finally, along with the increase of carbon price, consumers' low-carbon awareness and government subsidy and the decrease of carbon emission cap, those enterprises tend to reduce carbon emissions. - Highlights: • Analyze the impact of carbon allowance allocation rules on ETS-covered enterprises. • For grandfather, self-declaration and auction, they may maximize current profits. • For benchmark, they care the effect of current decisions on the coming profits. • The optimal product price positively relates to low-carbon awareness and subsidy. • Carbon price, low-carbon awareness and subsidy rise leads their emission reduction.

  14. An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey

    International Nuclear Information System (INIS)

    Halicioglu, Ferda

    2009-01-01

    This study attempts to empirically examine the dynamic causal relationships between carbon emissions, energy consumption, income, and foreign trade in the case of Turkey using the time-series data for the period 1960-2005. This research tests the interrelationship between the variables using the bounds testing to cointegration procedure. The bounds test results indicate that there exist two forms of long-run relationships between the variables. In the case of first form of long-run relationship, carbon emissions are determined by energy consumption, income and foreign trade. In the case of second long-run relationship, income is determined by carbon emissions, energy consumption and foreign trade. An augmented form of Granger causality analysis is conducted amongst the variables. The long-run relationship of CO 2 emissions, energy consumption, income and foreign trade equation is also checked for the parameter stability. The empirical results suggest that income is the most significant variable in explaining the carbon emissions in Turkey which is followed by energy consumption and foreign trade. Moreover, there exists a stable carbon emissions function. The results also provide important policy recommendations. (author)

  15. Carbon emissions trading scheme exploration in China: A multi-agent-based model

    International Nuclear Information System (INIS)

    Tang, Ling; Wu, Jiaqian; Yu, Lean; Bao, Qin

    2015-01-01

    To develop a low-carbon economy, China launched seven pilot programs for carbon emissions trading (CET) in 2011 and plans to establish a nationwide CET mechanism in 2015. This paper formulated a multi-agent-based model to investigate the impacts of different CET designs in order to find the most appropriate one for China. The proposed bottom-up model includes all main economic agents in a general equilibrium framework. The simulation results indicate that (1) CET would effectively reduce carbon emissions, with a certain negative impact on the economy, (2) as for allowance allocation, the grandfathering rule is relatively moderate, while the benchmarking rule is more aggressive, (3) as for the carbon price, when the price level in the secondary CET market is regulated to be around RMB 40 per metric ton, a satisfactory emission mitigation effect can be obtained, (4) the penalty rate is suggested to be carefully designed to balance the economy development and mitigation effect, and (5) subsidy policy for energy technology improvement can effectively reduce carbon emissions without an additional negative impact on the economy. The results also indicate that the proposed novel model is a promising tool for CET policy making and analyses. -- Highlights: •A multi-agent-based model is proposed for carbon emissions trading (CET) in China. •Three agents are included: government, firms in different sectors and households. •The impacts of CET on the economy and environment in China are analyzed. •Different CET designs are simulated to find an appropriate policy for China. •Results confirm the effectiveness of the model and give helpful insights into CET design

  16. The market effectiveness of electricity reform: A case of carbon emissions trading market of Shenzhen city

    Science.gov (United States)

    Wang, Yongli; Wang, Gang; Zuo, Yi; Fan, Lisha; Xiao, Yao

    2017-03-01

    In the 13th Five-Year Plan, the Chinese government proposed to achieve the national carbon emission trading market established by 2017. The establishment of carbon emission trading market is the most important one in power reform, which helps to promote the power reform and achieve the goal of energy saving and emission reduction. As the bond of connecting environment energy issues and the economic development, carbon emissions trading market has become a hot research topic in the related fields, by market means, it incentive the lower cost subject emissions to undertake more reductions and therefore to benefit, the body of the high cost finished the task by buying quota reduction, to achieve the effect of having the least social total cost. Shenzhen has become the first city in China to start carbon trading pilot formally on June 16, 2013, online trading on June 18. The paper analyzes the market effectiveness of electricity reform in China, which takes carbon emissions trading market of Shenzhen city for example, and gives some suggestions for future development.

  17. Electricity trade and GHG emissions: Assessment of Quebec's hydropower in the Northeastern American market (2006-2008)

    International Nuclear Information System (INIS)

    Ben Amor, Mourad; Pineau, Pierre-Olivier; Gaudreault, Caroline; Samson, Rejean

    2011-01-01

    Worldwide electricity sector reforms open up electricity markets and increase trades. This has environmental consequences as exports and imports either increase or decrease local production and consequently greenhouse gas (GHG) emissions. This paper's objective is to illustrate the importance of electricity trade's impact on GHG emissions by providing an estimate of the net GHG emissions resulting from these trades. To achieve this objective, Quebec hourly electricity exchanges with adjacent jurisdictions were examined over the 2006-2008 period. In order to associate a specific GHG emission quantity to electricity trades, hourly marginal electricity production technologies were identified and validated using the Ontario hourly output per power plant and information released in the Quebec adjacent system operator reports. It is estimated that over three years, imports into Quebec were responsible for 7.7 Mt of GHG, while Quebec hydropower exports avoided 28.3 Mt of GHG emissions. Hence, the net result is 20.6 Mt of avoided emissions over 2006-2008, or about 7 Mt per year, which corresponds to more than 8% of the Quebec yearly GHG emissions. When GHG emissions from all life cycle stages (resource extraction to end-of-life) are accounted for, the net avoided GHG emissions increase by 35%, to 27.9 Mt. - Research highlights: → Environmental benefits of hydropower exports are considerable. → Detailed GHG assessment of such electricity trade is missing from the literature. → Net GHG emissions estimate resulting from such trade is provided. → GHG gains are significant in the Northeast American electricity market due to such electricity trade.

  18. Assessment of the impact of the European CO2 emissions trading scheme on the Portuguese chemical industry

    International Nuclear Information System (INIS)

    Tomas, R.A.F.; Ramoa Ribeiro, F.; Santos, V.M.S.; Gomes, J.F.P.; Bordado, J.C.M.

    2010-01-01

    This paper describes an assessment of the impact of the enforcement of the European carbon dioxide (CO 2 ) emissions trading scheme on the Portuguese chemical industry, based on cost structure, CO 2 emissions, electricity consumption and allocated allowances data from a survey to four Portuguese representative units of the chemical industry sector, and considering scenarios that allow the estimation of increases on both direct and indirect production costs. These estimated cost increases were also compared with similar data from other European Industries, found in the references and with conclusions from simulation studies. Thus, it was possible to ascertain the impact of buying extra CO 2 emission permits, which could be considered as limited. It was also found that this impact is somewhat lower than the impacts for other industrial sectors.

  19. Inter-trading permanent emissions credits and rented temporary carbon emissions offsets. Some issues and alternatives

    International Nuclear Information System (INIS)

    Sedjo, Roger A.; Marland, Gregg

    2003-01-01

    Permit trading among polluting parties is now firmly established as a policy tool in a range of environmental policy areas. The Kyoto Protocol accepts the principle that sequestration of carbon in the terrestrial biosphere can be used to offset emissions of carbon from fossil fuel combustion and outlines mechanisms. Although the lack of guaranteed permanence of biological offsets is often viewed as a defect, this paper argues that the absence of guaranteed permanence need not be a fundamental problem. We view carbon emissions as a liability issue. One purpose of an emissions credit system is to provide the emitter with a means to satisfy the carbon liability associated with her firm's (or country's) release of carbon into the atmosphere. We have developed and here expand on a rental approach, in which sequestered carbon is explicitly treated as temporary: the emitter temporarily satisfies his liability by temporarily 'parking' his liability, for a fee, in a terrestrial carbon reservoir, or 'sink,' such as a forest or agricultural soil. Finally, the paper relates the value of permanent and temporary sequestration and argues that both instruments are tradable and have a high degree of substitutability that allows them to interact in markets

  20. Inspection and market-based regulation through emissions trading. The striking reliance on self-monitoring, self-reporting and verification

    International Nuclear Information System (INIS)

    Peeters, M.

    2006-01-01

    This contribution discusses inspection with regard to emissions trading. It focuses on the EU greenhouse gas emissions trading scheme. The core rule of emissions trading is that industries need to cover their emissions with tradable emission rights. There are several options for the government to distribute those rights, basically through a free allocation or an auction. The need to cover emissions with a tradable right gives a financial incentive to firms to choose for the reduction of emissions, of course related to the market price of the tradable right. This price-incentive at the same time urges governments to put in place a sound enforcement approach. One of the characteristics of current emissions trading schemes is that they heavily rely on self-monitoring duties. Nevertheless, the ultimate responsibility to inspect rests on the government. However, with the introduction of emissions trading a remarkable shift takes place: instead of the more traditional control of the actual behaviour of industries, inspection by the government ranges under the greenhouse gas emissions-trading instrument much more towards the control of self-monitoring activities. The use of verifiers within the EU greenhouse gas emissions trading scheme is in this respect a unique new provision, but at the same time raises many practical and fundamental questions.

  1. Trading greenhouse gas emission benefits from biofuel use in US transportation: Challenges and opportunities

    International Nuclear Information System (INIS)

    Kumarappan, Subbu; Joshi, Satish

    2011-01-01

    Replacing petroleum fuels with biofuels such as ethanol and biodiesel has been shown to reduce greenhouse gas (GHG) emissions. These GHG benefits can potentially be traded in the fledgling carbon markets, and methodologies for quantifying and trading are still being developed. We review the main challenges in developing such carbon trading frameworks and outline a proposed framework for the US, the main features of which include, lifecycle assessment of GHG benefits, a combination of project-specific and standard performance measures, and assigning GHG property rights to biofuel producers. At carbon prices of 10 $ t −1 , estimated monetary benefits from such trading can be 4.5 M$ hm −3 and 17 M$ hm −3 of corn ethanol and cellulosic ethanol respectively. -- Highlights: ▶ Develops a biofuel GHG trading protocol using life-cycle emissions. ▶ Discusses the differences in feedstock and impacts on GHG trading potential. ▶ Compares the developed protocol for biofuels with other existing protocols. ▶ Estimates the market potential, and challenges associated with trading GHG emissions.

  2. An analysis of the driving forces of CO2 emissions embodied in Japan-China trade

    International Nuclear Information System (INIS)

    Dong Yanli; Ishikawa, Masanobu; Liu Xianbing; Wang Can

    2010-01-01

    By using the latest China-Japan input-output data sets and the index decomposition analysis (IDA) approach, this article analyzes the driving forces of CO 2 emissions embodied in trade between the two countries during 1990-2000. We found that the growth of trade volume had a large influence on the increase of CO 2 emissions embodiments in bilateral trade. The dramatic decline in carbon intensity of the Chinese economy is a primary cause in offsetting CO 2 emissions exported from China to Japan over 1995-2000. We argue that a better understanding of the factors affecting CO 2 emissions embodied in international trade will assist in seeking more effective climate policies with wider participation in the post-Kyoto regime.

  3. Designing an emissions trading scheme for China—An up-to-date climate policy assessment

    International Nuclear Information System (INIS)

    Hübler, Michael; Voigt, Sebastian; Löschel, Andreas

    2014-01-01

    We assess recent Chinese climate policy proposals in a multi-region, multi-sector computable general equilibrium model with a Chinese carbon emissions trading scheme (ETS). When the emissions intensity per GDP in 2020 is required to be 45% lower than in 2005, the model simulations indicate that the climate policy induced welfare loss in 2020, measured as the level of GDP and welfare in 2020 under climate policy relative to their level under business-as-usual (BAU) in the same year, is about 1%. The Chinese welfare loss in 2020 slightly increases in the Chinese rate of economic growth in 2020. When keeping the emissions target fixed at the 2020 level after 2020 in absolute terms, the welfare loss will reach about 2% in 2030. If China's annual economic growth rate is 0.5 percentage points higher (lower), the climate policy-induced welfare loss in 2030 will rise (decline) by about 0.5 percentage points. Full auctioning of carbon allowances results in very similar macroeconomic effects as free allocation, but full auctioning leads to higher reductions in output than free allocation for ETS sectors. Linking the Chinese to the European ETS and restricting the transfer volume to one third of the EU's reduction effort creates at best a small benefit for China, yet with smaller sectoral output reductions than auctioning. These results highlight the importance of designing the Chinese ETS wisely. - Highlights: • 45% Chinese carbon intensity target for 2020 implemented via emissions trading. • 1% GDP/welfare loss in 2020 and 2% in 2030 for a fixed emissions target after 2020. • 0.5 percentage points higher (lower) growth, increases (decreases) climate policy-induced welfare loss in 2030 by about 0.5 percentage points. • Similar macroeconomic effects for free allocation and full auctioning, but higher reductions in output under full auctioning in ETS sectors. • Restricted linking to EU emissions trading creates at best a small benefit for China

  4. Issues in the implementation of greenhouse gas emissions trading in Europe

    International Nuclear Information System (INIS)

    Ellerman, D.

    2001-01-01

    Ironically, emissions trading proposals to implement the Kyoto Protocol are being proposed in Europe, not among the nations usually associated with such measures. This article identifies and discusses very briefly the main issues that will have to be considered in adopting a national system of CO 2 emissions trading. These issues are: allocation of permits and monitoring, penalties and liability for non-compliance, comprehensiveness of the emissions cap, integration with renewable energy certificates, integration of sinks and other gases with carbon trading, and cost caps and escape valves. Assuming the current proposals are adopted, Europe bids fair to become the test-bed in which the rules of an eventual international system will be developed in process not unlike that characterizing the development of the European Union. The European challenge is then both inward, to Europe, to go beyond proposals and to resolve the issues identified here, and outward, to other nations, to take similar steps in matching deed with advocacy. (author)

  5. Emissions trading and transaction costs : analyzing the flaws in the discussion

    NARCIS (Netherlands)

    Woerdman, E.

    Although emissions trading lowers the costs of climate change mitigation, transaction costs (e.g. to find a trading partner) may reduce its cost-effectiveness. Some economists claim that transaction costs for Joint Implementation (JI) and Clean Development Mechanism (CDM) projects will be higher

  6. Analysis of the impacts of combining carbon taxation and emission trading on different industry sectors

    International Nuclear Information System (INIS)

    Lee, Cheng F.; Lin, Sue J.; Lewis, Charles

    2008-01-01

    Application of price mechanisms has been the important instrument for carbon reduction, among which the carbon tax has been frequently advocated as a cost-effective economic tool. However, blanket taxes applied to all industries in a country might not always be fair or successful. It should therefore be implemented together with other economic tools, such as emission trading, for CO 2 reduction. This study aims to analyze the impacts of combining a carbon tax and emission trading on different industry sectors. Results indicate that the 'grandfathering rule (RCE2000)' is the more feasible approach in allocating the emission permit to each industry sector. Results also find that the accumulated GDP loss of the petrochemical industry by the carbon tax during the period 2011-2020 is 5.7%. However, the accumulated value of GDP will drop by only 4.7% if carbon taxation is implemented together with emission trading. Besides, among petrochemical-related industry sectors, up-stream sectors earn profit from emission trading, while down-stream sectors have to purchase additional emission permits due to failure to achieve their emission targets

  7. Multi-lateral emission trading: lessons from inter-state NOx control in the United States

    International Nuclear Information System (INIS)

    Farrell, A.

    2001-01-01

    Marketable emission permit mechanisms are increasingly proposed as efficient means of managing environmental pollution problems such as greenhouse gas emissions. Existing examples of emissions trading in the literature have so far been limited to domestic efforts put in place through the action of a national legislature, which has no parallel in international politics. This paper examines two efforts to establish multi-lateral emissions trading for nitrogen oxides among various states with the US. One, the Ozone Transport Commission's NO x Budget program is a success. The other, the Ozone Transport Assessment Group and the federal government's subsequent NO x SIP Call has not resulted in a multi-lateral emissions control program, let alone an efficient, market-based one. Due to the relative similarities of the states (compared to highly heterogeneous nations of the world) these are ''best case'' examples, and explaining the vast differences in outcomes will help explain the potential and the challenges in developing an international emission trading program to control greenhouse gas emissions. (author)

  8. Emissions trading and firms' strategies. The case of power producers

    International Nuclear Information System (INIS)

    Rousse, O.

    2005-11-01

    This thesis deals with the impacts of a domestic emissions trading scheme on firms' strategies. As recent experiences of such programs (Acid Rain Program, RECLAIM Program, NOx Budget Program and the European Union Emissions Trading Scheme) concern mainly heat and power producers, we analyze especially strategies of these companies. In context of electricity market deregulation, our study takes two directions: uncertainty and competitive distortions. Concerning uncertainty, we are interested in portfolio management of emission permits, that is choice under uncertainty between buying, selling and banking permits. Concerning competitive distortions, we consider manipulations on the permits and/or products markets. Among others, we investigate interactions between a pollution market and the wholesale electricity market. From a general point of view, we show that a permits market, even competitive, gives to power producers more opportunities to act strategically on wholesale electricity markets. By this way, our study attempts to indicate when these market distortions are more likely to occur and to give some emissions market design instructions. (author)

  9. Papers of the Canadian Institute conference: Reduction, management and trading of greenhouse gas emissions

    International Nuclear Information System (INIS)

    2003-01-01

    This conference provided an opportunity for experts from various fields to discuss and exchange views and the latest information on a wide range of topics related to the reduction, management and trading of greenhouse gas emissions. The papers dealt with pertinent issues such as: (1) short and long term impacts of the Kyoto Protocol ratification for industries operating in Quebec, necessary changes and required investment, (2) calculation mechanisms for the allocation of permits, audit systems for the reduction and registration of emissions, (3) Canadian and international emission trading market, opportunities and associated risks, (4) preparation of an emission trading contract, (5) the establishment of a greenhouse gas (GHG) emission reduction and management system within companies, and (6) measures implemented by governments to assist industry in meeting emission reduction targets. Of the sixteen papers presented at the conference, 4 have been processed separately for inclusion in this database. refs., tabs., figs

  10. EU emissions trading: Distinctive behavior of small companies

    OpenAIRE

    Naegele, Helene; Zaklan, Aleksandar

    2016-01-01

    The EU Emissions Trading System (EU ETS) is the cornerstone of the European Union's climate policy and covers just under half of the EU's greenhouse gas emissions. More than ten years since the EU ETS was first introduced, there continues to be substantial research interest regarding its functioning and the behavior of participating companies. DIW Berlin conducted three econometric studies based on microdata at company and/or installation level. The findings suggest that, overall, there are o...

  11. Trading in the rain. Rainfall and European power sector emissions. Research note no. 9; Trading in the rain. Precipitations et emissions du secteur electrique europeen. Note d'etude n.9

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2006-07-01

    Analysts often say that temperature and rainfall have an impact on the price of CO{sub 2}, as they influence the conditions of electric power supply and demand. Rainfall mainly affects the capacity of hydropower production, the third largest source of electricity in Europe and by far the leading source of renewable energy. The variability of hydroelectric volumes is indeed usually offset by other, higher-emitting sources of electricity, which has repercussions on the European allowances trading market. In 2005, rainfall was unusually low in several European countries: in the Iberian peninsula and in France, drought is believed to have brought about a rise of approximately 15 Mt CO{sub 2} in power sector emissions. In contrast, hydrological conditions were particularly good in the Nordic countries, allowing them to reduce CO{sub 2} emissions in the region as a whole through hydropower-based exports. The additional allowances demand would therefore have been 'only' about 9 Mt CO{sub 2}. To make the interaction with the CO{sub 2} market easier to understand, an indicator of rainfall in Europe must include this compensating phenomenon resulting from the heterogeneity of the climatic conditions and volumes produced in Europe.

  12. Assessment of the impact of the European CO{sub 2} emissions trading scheme on the Portuguese chemical industry

    Energy Technology Data Exchange (ETDEWEB)

    Tomas, R.A.F. [Artenius Sines, Zona Industrial, 7520 Sines (Portugal); Ramoa Ribeiro, F.; Bordado, J.C.M. [Centro de Engenharia Quimica e Biologica, IBB-Instituto de Biotecnologia e Bioengenharia, Instituto Superior Tecnico, Av. Rovisco Pais, 1049-001 Lisboa (Portugal); Santos, V.M.S. [Instituto Superior de Economia e Gestao, R. do Quelhas, 6, 1200-781 Lisboa (Portugal); Gomes, J.F.P. [Centro de Engenharia Quimica e Biologica, IBB-Instituto de Biotecnologia e Bioengenharia, Instituto Superior Tecnico, Av. Rovisco Pais, 1049-001 Lisboa (Portugal); Departamento de Engenharia Quimica, Instituto Superior de Engenharia de Lisboa, R. Conselheiro Emidio Navarro 1949-014 Lisboa (Portugal)

    2010-01-15

    This paper describes an assessment of the impact of the enforcement of the European carbon dioxide (CO{sub 2}) emissions trading scheme on the Portuguese chemical industry, based on cost structure, CO{sub 2} emissions, electricity consumption and allocated allowances data from a survey to four Portuguese representative units of the chemical industry sector, and considering scenarios that allow the estimation of increases on both direct and indirect production costs. These estimated cost increases were also compared with similar data from other European Industries, found in the references and with conclusions from simulation studies. Thus, it was possible to ascertain the impact of buying extra CO{sub 2} emission permits, which could be considered as limited. It was also found that this impact is somewhat lower than the impacts for other industrial sectors. (author)

  13. The political economy of emissions trading; L'economie politique des marches de permis d'emissions negociables

    Energy Technology Data Exchange (ETDEWEB)

    Hanoteau, J

    2004-06-15

    This thesis is a positive analysis of emissions trading systems' implementation. We explain why allowances are generally granted for free even though normative economic analysis recommends their sale. We show empirically that free tradable permits, source of windfall profit, motivate rent seeking behaviours. The study focuses on the US market for SO{sub 2} emissions allowances. The initial allocation rule resulted from parliamentary discussions that looked like a zero sum game. We formalize it as an endogenous sharing rule, function of lobbying effort, and we test it using political (money) contributions.We analyse theoretically the behaviour of an influenced regulator that has chosen to organize a market for permits and that must still decide on two policy variables: the whole quantity of permits and the way to allocate them initially. We formalize this decisions making process with the common agency model of politics.We show that the choice of an initial allocation rule is not neutral in presence of political market failures (lobbying). The decision to sell the permits or to grant them for free modifies the shareholders' incentive, in a polluting industry, to pressure for or against the reduction of legal emissions.Then, we analyse the public arbitration between the two policy variables when several industrial lobbies play a partially cooperative game for the free permits. The regulator chooses in priority to grant the rights for free rather than to manipulate their quantity, and this constitutes an efficient answer to the political influence. (author)

  14. Real options theory to the pricing of allowances contract to carbon emission; Teoria de opcoes reais para a precificacao de contrato de permissoes de emissao de carbono

    Energy Technology Data Exchange (ETDEWEB)

    Horii, Leticia Takahashi; Parente, Virginia; Goldemberg, Jose [Universidade de Sao Paulo (IEE/USP), SP (Brazil). Inst. de Eletrotecnica e Energia

    2010-07-01

    The objective of this work is to develop a pricing model contract for allowances to emit carbon through Real Options. Emissions allowances are equivalent tons of carbon traded between Annex I countries from companies that have the ability to reduce their emissions beyond what is assigned to it. The surplus of emission reductions produced by these companies may be sold in the emissions market. Thus, this work can contribute to improving the management of contractual risk and enable companies estimated the price at which a contract can be signed. Properly evaluate the contracts that the market environment is a challenge for companies. The historic low of information and randomness in the price of carbon allowances in the spot market suggest extreme caution in its use. (author)

  15. Carbon emission, energy consumption and intermediate goods trade: A regional study of East Asia

    International Nuclear Information System (INIS)

    Zhang, Jingjing

    2015-01-01

    Using country level panel data from East Asia over the period 1998–2011, this paper examines the implications of international production fragmentation-induced intermediate goods trade on the link between energy consumption and carbon pollution. The paper focuses on the interaction effect between energy consumption and trade in intermediate goods on carbon emission. The empirical results presented suggest that international trade in intermediate goods decreases the positive impact on carbon emission of energy consumption. When compared with the trade in final goods, intermediate goods trade contributes to a greater decrease in carbon pollution resulting from energy consumption. These results confirm that the link between energy consumption and carbon pollution in East Asia is significantly affected by international production fragmentation-induced trade in intermediate goods. The results presented in this paper have some important policy implications. - Highlights: • This paper tests the role of intermediates trade in energy-development nexus. • Empirical study is based on data of East Asia. • International trade can reduce the carbon pollution caused by energy use. • Intermediates trade has higher moderating effect than non-intermediate trade.

  16. Study on the Coordination of Supply Chain Based on Carbon Emissions Trading Considering the Retailers’ Competition

    Directory of Open Access Journals (Sweden)

    Wang Daoping

    2017-01-01

    Full Text Available This paper studies the coordination of supply chain in the context of carbon emissions trading mechanism, which considering the competition between retailers. Centralized and decentralized supply chain models were constructed to discuss the price of product, to avoid the losses of profit from the decentralized decision-making, the revenue-sharing contract was introduced to coordinate the supply chain. Research shows that the carbon emissions trading reduce emissions effectively, but the higher price of carbon emissions trading cut down the total profit of supply chain; The competition between retailers upgrades the supply chain members’ profit; Coordination was achieved by introducing the revenue-sharing contract. Finally, numerical example was given to illustrate the validity of the revenue-sharing contract, and the sensitivity analysis of parameters such as the price of the emissions trading and the retailers’ competition were presented.

  17. Creating a level playing field? The concentration and centralisation of emissions in the European Union Emissions Trading System

    International Nuclear Information System (INIS)

    Bryant, Gareth

    2016-01-01

    This article questions the assumption that carbon markets create a level playing field by exploring the relationship between the organisation of capital and the organisation of emissions in the European Union Emissions Trading System (EU ETS). It constructs a database by matching installations and owners to reveal that a relatively small number of large-scale coal-fired power stations, owned by a very small group of states and corporations, are responsible for a significant proportion of greenhouse gas emissions. The findings are analysed by considering how technological dependence on coal together with the corporate institutional form combine to support the socio-spatial concentration and centralisation of capital and emissions. Case studies of the consolidation of the seven largest polluting owners from Europe's coal-dependent electricity sector and the carbon trading strategies of the two largest polluters, RWE and E.ON, then assess the impacts of energy liberalisation and emissions trading policies. The article concludes that EU energy and climate policies are pulling in different directions by clustering responsibility for greenhouse gas emissions and diffusing responsibility to address climate change. The uneven distribution of emissions within the EU ETS makes an alternative policy approach that directly targets the biggest corporate and state polluters both feasible and necessary. - Highlights: • 20 ultimate owners are responsible for one-half of 2005–12 EU ETS emissions. • 83 installations are responsible for one-third of 2005–12 EU ETS emissions. • Focus on technological dependence on coal and the corporate institutional form. • Energy liberalisation policy has consolidated responsibility for emissions. • Carbon markets have diffused responsibility for addressing climate change.

  18. A real option-based model to valuate CDM projects under uncertain energy policies for emission trading

    International Nuclear Information System (INIS)

    Park, Taeil; Kim, Changyoon; Kim, Hyoungkwan

    2014-01-01

    Highlights: • A real option-based model for the valuation of CDM projects is proposed. • This study investigates the impact of energy policies on the value of CDM projects. • Level of target emission and its schedule should be carefully designed. • Government subsidy facilitates the implementation of CDM projects. • Period for free emission allowance prevents promoting CDM projects. - Abstract: Emission trading has been considered a primary policy tool for emission reduction. Governments establish national targets for emission reduction and assign emission reduction goals to private entities to accomplish the targets. To attain the goal, private entities should perform offset projects that can produce emission credits or buy emission credits from the market. However, it is not easy for private entities to decide to implement the projects because energy policies associated with emission trading keep changing; thus, the future benefits of the offset projects are quite uncertain. This study presents a real option-based model to investigate how uncertain energy policies affect the financial viability of an offset project. A case study showed that the establishment of a target emission was attractive to the government because it could make the CDM project financially viable with a small amount of government subsidy. In addition, the level of the government subsidy could determine the investment timing for the CDM project. In this context, governments should be cautious in designing energy policies, because even the same energy policies could have different impacts on private entities. Overall, this study is expected to assist private entities in establishing proper investment strategies for CDM projects under uncertain energy policies

  19. Trading in the rain. Rainfall and European power sector emissions. Research note no. 9; Trading in the rain. Precipitations et emissions du secteur electrique europeen. Note d'etude n.9

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2006-07-01

    Analysts often say that temperature and rainfall have an impact on the price of CO{sub 2}, as they influence the conditions of electric power supply and demand. Rainfall mainly affects the capacity of hydropower production, the third largest source of electricity in Europe and by far the leading source of renewable energy. The variability of hydroelectric volumes is indeed usually offset by other, higher-emitting sources of electricity, which has repercussions on the European allowances trading market. In 2005, rainfall was unusually low in several European countries: in the Iberian peninsula and in France, drought is believed to have brought about a rise of approximately 15 Mt CO{sub 2} in power sector emissions. In contrast, hydrological conditions were particularly good in the Nordic countries, allowing them to reduce CO{sub 2} emissions in the region as a whole through hydropower-based exports. The additional allowances demand would therefore have been 'only' about 9 Mt CO{sub 2}. To make the interaction with the CO{sub 2} market easier to understand, an indicator of rainfall in Europe must include this compensating phenomenon resulting from the heterogeneity of the climatic conditions and volumes produced in Europe.

  20. Economic impact assessment of Turkey's post-Kyoto vision on emission trading

    International Nuclear Information System (INIS)

    Akın Olçum, Gökçe; Yeldan, Erinç

    2013-01-01

    For the post-Kyoto period, Turkey strongly emphasizes the establishment of national emission trading system by 2015 and its integration with the EU ETS along its accession process to the EU. In this paper, we study the mechanisms of adjustment and economic welfare consequences of various ETS regimes that Turkey considers to apply by 2020, i.e. regional ETS and international trading within the EU ETS. We conduct our analysis under the current EU 20–20–20 emission target, 20%, and also under its revised version, 30%. We find that Turkey has economic gains from linking with the EU ETS under the 20% cap, in comparison to the domestic ETSs. Despite the EU's welfare loss under linkage in comparison to the case where Turkey has domestic abatement efforts, it still prefers linking as it increases economic well being compared to the case where Turkey does not abate. Under 30% cutback, Turkey has critical output loss under linkage due to high abatement burden on the EU, while the EU is better off as it passes some of its abatement burden to Turkey. Therefore, emission quotas and their allocation across the ETS and non ETS sectors become highly critical in distributing the overall economic gains from bilateral trading. - Highlights: • We conduct welfare analysis of Turkey's post-Kyoto vision on emission trading. • Welfare impacts of having Turkey in the EU ETS via EU accession are analyzed. • Analysis is done with the current EU target of 20%, and the revised target of 30%. • Welfare impacts of linkage on both regions highly depend on the emission targets. • The EU has welfare gains when Turkey engages in abatement actions

  1. Emissions Trading Schemes under IFRS - Towards a “true and fair view”

    OpenAIRE

    Haupt, Madlen; Ismer, Roland

    2011-01-01

    This research paper seeks to contribute to the latest discussions on the financial reporting for emissions trading schemes. It starts out by giving an overview of the International Financial Reporting Standards (IFRS) accounting policies, which are currently applied by the majority of participants in the EU Emissions Trading Scheme. It then argues that in order to fulfil the aims of financial reporting under IFRS, namely to provide a true and fair view, accounting must depict CO2 as a cost of...

  2. Emissions Trading Regimes and Incentives to Participate in International Climate Agreements

    International Nuclear Information System (INIS)

    Buchner, B.; Carraro, C.

    2003-11-01

    This paper analyses whether different emissions trading regimes provide different incentives to participate in a cooperative climate agreement. Different incentive structures are discussed for those countries, namely the US, Russia and China, that are most important in the climate negotiation process. Our analysis confirms the conjecture that, by appropriately designing the emission trading regime, it is possible to enhance the incentives to participate in a climate agreement. Therefore, participation and optimal policy should be jointly analysed. Moreover, our results show that the US, Russia and China have different most preferred climate coalitions and therefore adopt conflicting negotiation strategies

  3. Extension of EU Emissions Trading Scheme to Other Sectors and Gases: Consequences for Uncertainty of Total Tradable Amount

    International Nuclear Information System (INIS)

    Monni, S.; Syri, S.; Pipatti, R.; Savolainen, I.

    2007-01-01

    Emissions trading in the European Union (EU), covering the least uncertain emission sources of greenhouse gas emission inventories (CO 2 from combustion and selected industrial processes in large installations), began in 2005. During the first commitment period of the Kyoto Protocol (2008-2012), the emissions trading between Parties to the Protocol will cover all greenhouse gases (CO 2 , CH 4 , N 2 O, HFCs, PFCs, and SF 6 ) and sectors (energy, industry, agriculture, waste, and selected land-use activities) included in the Protocol. In this paper, we estimate the uncertainties in different emissions trading schemes based on uncertainties in corresponding inventories. According to the results, uncertainty in emissions from the EU15 and the EU25 included in the first phase of the EU emissions trading scheme (2005-2007) is ±3% (at 95% confidence interval relative to the mean value). If the trading were extended to CH 4 and N 2 O, in addition to CO 2 , but no new emissions sectors were included, the tradable amount of emissions would increase by only 2% and the uncertainty in the emissions would range from -4 to +8%. Finally, uncertainty in emissions included in emissions trading under the Kyoto Protocol was estimated to vary from -6 to +21%. Inclusion of removals from forest-related activities under the Kyoto Protocol did not notably affect uncertainty, as the volume of these removals is estimated to be small

  4. The surveillance of the electricity wholesale market and emission trading market

    International Nuclear Information System (INIS)

    Luedemann, Volker

    2015-01-01

    The Regulation on Wholesale Market Integrity and Transparency (REMIT) and the German Law on the Establishment of a Market Transparency Office for Wholesale Trade in Electricity and Gas (MTS-G) have fundamentally changed the surveillance of electricity wholesale trade in Germany. From now on the Federal Network Agency and the Federal Cartel Office will be jointly responsible for monitoring the electricity wholesale trade for suspicious market phenomena and abusive behaviour. The REMIT specifies that the electricity trade must be surveilled ''with due consideration to interactions'' with the emission trade system. However, occurrences observed in recent years have shown that the emission trading system is in need of reform. This has also been recognised and has prompted extensive corrective action by the regulatory authorities of the European Union. These changes have yet to be transposed into the national surveillance regimes. The present article explains why the new role accorded to the Federal Network Agency under the REMIT fails to eliminate the structural shortcomings of the old surveillance system. At least the decision to put the collection and evaluation of data exclusively in the hands of the market transparency office and the cooperation this will prompt between the supervisory authorities responsible will make the task of surveilling the energy wholesale trading market a lot easier for the authorities. The energy transition and its exigencies will yet lead to further changes in the market and its surveillance regime.

  5. Factors affecting the carbon allowance market in the US

    Energy Technology Data Exchange (ETDEWEB)

    Kim, Hyun Seok; Koo, Won W. [Center for Agricultural Policy and Trade Studies, Department of Agribusiness and Applied Economics, North Dakota State University, Dept 7610, P.O. Box 6050, Fargo, ND 58103-6050 (United States)

    2010-04-15

    The US carbon allowance market has different characteristic and price determination process from the EU ETS market, since emitting installations voluntarily participate in emission trading scheme. This paper examines factors affecting the US carbon allowance market. An autoregressive distributed lag model is used to examine the short- and long-run relationships between the US carbon allowance market and its determinant factors. In the long-run, the price of coal is a main factor in the determination of carbon allowance trading. In the short-run, on the other hand, the changes in crude oil and natural gas prices as well as coal price have significant effects on carbon allowance market. (author)

  6. Factors affecting the carbon allowance market in the US

    International Nuclear Information System (INIS)

    Kim, Hyun Seok; Koo, Won W.

    2010-01-01

    The US carbon allowance market has different characteristic and price determination process from the EU ETS market, since emitting installations voluntarily participate in emission trading scheme. This paper examines factors affecting the US carbon allowance market. An autoregressive distributed lag model is used to examine the short- and long-run relationships between the US carbon allowance market and its determinant factors. In the long-run, the price of coal is a main factor in the determination of carbon allowance trading. In the short-run, on the other hand, the changes in crude oil and natural gas prices as well as coal price have significant effects on carbon allowance market.

  7. Fraud risks in emissions trading; Frauderisico's bij handel in emissierechten

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2010-09-15

    The system of emission trading is a complex composed entity with on the one hand a strong environmental component and on the other hand a financial world that hooked on this instrument. In chapter 2 an introduction is provided to the emission trading system. The subsequent chapters elaborate Types of Fraud (Chapter 3), Powers (Chapter 4), and Instruments (Chapter 5). The report shows that various forms of fraud are occurring in emission trading, such as VAT fraud and identity theft. [Dutch] Het systeem van emissiehandel is een complex samengesteld geheel met aan de ene kant een belangrijke milieucomponent en aan de andere kant een financiele wereld die ingehaakt heeft op dit instrument. In hoofdstuk 2 wordt een introductie gegeven op het systeem van emissiehandel. In de volgende hoofdstukken wordt dieper ingegaan op Fraudevormen (hoofdstuk 3), Bevoegdheden (hoofdstuk 4), en Instrumentarium (hoofdstuk 5). Uit het rapport blijkt dat verschillende vormen van fraude zijn optreden bij de handel in emissierechten, zoals BTW-fraude en identiteitsfraude.

  8. Carbon trading thickness and market efficiency

    International Nuclear Information System (INIS)

    Montagnoli, Alberto; De Vries, Frans P.

    2010-01-01

    This note tests for the efficient market hypothesis (EMH) in the market for CO 2 emission allowances in Phase I and Phase II of the European Union Emissions Trading Scheme (EU ETS). As usually is the case in emerging and non-competitive markets such as the EU ETS, trading often not occurs on a frequent basis. This has adverse implications for both the gains from permit trade as well as biases the EMH tests. Variance ratio tests are employed to adjust for the thin trading effect. The results indicate that Phase I - the trial and learning period - was inefficient, whereas the first period under Phase II shows signs of restoring market efficiency. (author)

  9. The Impact of the EU Emissions Trading System on CO{sub 2} Intensity in Electricity Generation

    Energy Technology Data Exchange (ETDEWEB)

    Widerberg, Anna (Dept. of Economics, Goeteborgs Univ., Goeteborg (Sweden)); Wraake, Markus (Swedish Environmental Research Institute Ltd., Stockholm (Sweden)). e-mail: markus.wrake@ivl.se

    2009-07-15

    Prior to the launch of the EU Emissions Trading System (EU ETS) in 2005, the electricity sector was widely proclaimed to have more low-cost emission abatement opportunities than other sectors. If this were true, effects of the EU ETS on carbon dioxide (CO{sub 2}) emissions would likely be visible in the electricity sector. Our study looks at the effect of the price of emission allowances (EUA) on CO{sub 2} emissions from Swedish electricity generation, using an econometric time series analysis for the period 2004-2008. We control for effects of other input prices and hydropower reservoir levels. Our results do not indicate any link between the price of EUA and the CO{sub 2} emissions of Swedish electricity production. A number of reasons may explain this result and we conclude that other determinants of fossil fuel use in Swedish electricity generation probably diminished the effects of the EU ETS

  10. Testing the theory of emissions trading : Experimental evidence on alternative mechanisms for global carbon trading

    NARCIS (Netherlands)

    Klaassen, Ger; Nentjes, Andries; Smith, Mark

    2005-01-01

    Simulation models and theory prove that emission trading converges to market equilibrium. This paper sets out to test these results using experimental economics. Three experiments are conducted for the six largest carbon emitting industrialized regions. Two experiments use auctions, the first a

  11. The enlargement of the European Union. Effects on trade and emissions of greenhouse gases

    International Nuclear Information System (INIS)

    Zhu, Xueqin; Van Ierland, Ekko

    2006-01-01

    With the gradual accession of various Central and Eastern European Countries (CEECs) to the European Union (EU), international trade between the EU and the CEECs will change as a result of trade liberalisation and the mobility of production factors within the EU. The EU and most of the CEECs have already committed themselves to reduce by 2008-2012 their emissions of greenhouse gases (GHGs) by 8% compared to the 1990 level. This paper reports on an investigation of the potential consequences of the enlargement of the EU and of the emission reduction target set by the Kyoto Protocol on the sectoral production patterns and international trade. A comparative-static general equilibrium model was developed to examine the impacts under different scenarios. For illustrative purposes, two regions (the EU and the CEECs) and three categories of goods and services (agricultural goods, industrial goods, and services) were included. The model was calibrated by the 1998 data. The model was subsequently applied to study the effects of free trade, the mobility of factors and the environmental constraints on production and international trade in light of the enlargement of the EU. We show that in this specific context, free trade is beneficial to economic welfare and does not necessarily increase emissions of greenhouse gases. The mobility of factors also increases economic welfare, but in the case of fixed production technology it may harm the environment through more emissions of GHGs. (author)

  12. EU climate policy impact in 2020. With a focus on the effectiveness of emissions trading policy in an economic recession scenario

    International Nuclear Information System (INIS)

    Graus, W.; Sreenivasamurthy, U.; Wesselink, B.

    2009-06-01

    PBL's Environmental Balance 2009 provides information on the current status and trends of environmental and climate policies. Ecofys contributes to the climate policy section of the report by developing the following three indicators: (1) ex-post and ex-ante policy impacts until 2020 at EU level (wedge diagram); (2) business-as-usual emissions of EU ETS sectors until 2020, revised for the current economic recession; (3) a latest literature review of EUA (EU emission allowances) price band expected until 2020. Based on the latter two analyses, a brief note on the impact of the current economic recession on the effectiveness of the EU emission trading scheme until 2020 is presented.An economic recession of two years or longer will considerably decrease the effectiveness of the Emissions Trading Scheme (ETS) in stimulating low-carbon technologies. In order to meet EU climate targets in the longer term, new governmental policies will be needed to compensate for this.

  13. Testing the assumptions behind emissions trading in non-market goods: the RECLAIM program in Southern California

    International Nuclear Information System (INIS)

    Lejano, Raul P.; Hirose, Rei

    2005-01-01

    Emissions trading is, essentially, a policy instrument that is designed to simulate a market for an otherwise public good. Conceptually, its justification hinges on a number of key assumptions, namely the negligibility of local impacts, the ability to separate and commodify the good in question, and characteristics of a well-functioning market. The authors examine the performance of RECLAIM, a NO x emissions trading program in Southern California, USA, and illustrate how to test these assumptions. There is some evidence that the trading of NO x generates new externalities, such as the possibility that other air pollutants, e.g. volatile organics, are essentially traded along with it. Moreover, the RECLAIM program has recently begun to experience difficulties due to the fact that the market is relatively thin. This analysis provides ways to assess more deeply and reform these trading regimes, including opening up RECLAIM to public review. The case study speaks to a wider arena, as emissions trading is presently being considered in other parts of the world to address issues ranging from acid rain to non-point source pollution to greenhouse gases. The analytic approach, illustrated herein, is a general one that has a wider applicability than the particular case of NO x trading. It is hoped that this kind of critical inquiry can lead to a more careful deliberation of the merits and challenges of emissions trading

  14. EU emissions trading. The need for cap adjustment in response to external shocks and unexpected developments?

    Energy Technology Data Exchange (ETDEWEB)

    Diekmann, Jochen [DIW, Berlin (Germany)

    2012-11-15

    In this paper the advantages and disadvantages of the various adaptation options will be discussed from an economic perspective. Firstly, the criteria for identifying a need for potentially legitimate adaptation should be investigated. Furthermore, the issue of appropriate timely intervention points prior to or within the trading period will be discussed. In what periods and scenarios are adjustments to the cap worthwhile from an economic perspective? To what extent could minimum prices or price ranges make sense? What role could a strategic reserve play? By addressing these issues, it will be fundamentally discussed as to how the emissions trading scheme could be further developed and strengthened by greater flexibility. After a brief characterisation of emissions trading in theory and practice in Chapter 2, Chapter 3 will identify potential external shocks and unexpected developments which may impair the functioning of an emissions trading scheme. The current problems of cap setting for the third trading period of the EU ETS will be described in Chapter 4. Against this background, cap adjustments will be discussed in Chapter 5, minimum and maximum prices in Chapter 6 and strategic reserves in emissions trading in Chapter 7. The conclusions are summarised in Chapter 8.

  15. Emission trading scheme: market analysis and forecasting scenarios

    International Nuclear Information System (INIS)

    Clo, Stefano

    2006-01-01

    This article offers an economic analysis of the Emission Trading Scheme (ETS) and its institutional framework; we introduce an economic model able to simulate some possible market price's scenarios. The aim of this article is to offer a better market fundamentals' comprehension and to help economic agents building their expectations about market's development [it

  16. CO2 credit or energy credit in emission trading?

    International Nuclear Information System (INIS)

    Hu, E.

    2002-01-01

    Emission trading is a good concept and approach to tackle global warming. However, what ''currency'' or ''credit'' should be used in the trading has remained a debatable topic. This paper proposed an ''Energy Credit'' concept as an alternative to the ''CO 2 credit'' that is currently in place. From the thermodynamic point of view, the global warming problem is an ''energy balance'' problem. The energy credit concept is thought to be more thermodynamically correct and tackles the core of the global warming problem more directly. The Energy credit concept proposed can be defined as: the credit to offset the extra energy trapped/absorbed in the earth (and its atmosphere) due to the extra anthropogenic emission (or other activities) by a country or company. A couple of examples are given in the paper to demonstrate the concept of the Energy credit and its advantages over the CO 2 credit concept. (author)

  17. Models of Co2 emission trading system for projections in MSG6. Documentation and guidance; Utviklingen i stroemforbruket, prisfoelsomheten og stroemmarkedet

    Energy Technology Data Exchange (ETDEWEB)

    Faehn, Taran; Stroem, Birger

    2012-08-15

    Present context of the EU Co2 Emission Trading System (EU ETS) from 2008, involves new measures directed towards a large portion of present emissions sources. Currently there is no basis in statistics figures to offset the consequences of these international obligations in SSB models. In the model projections is nevertheless necessary to model both the current instruments and expected future changes in the rules and forms of association. This paper documents the Ministry of Finance to establish a arrangements for implementing Norway's association with the EU ETS in the model MSG6. It also addresses the EU ETS policy instruments interacting with other objectives and instruments of climate policy, including the Kyoto commitments and various domestic Climate tax systems. The European emissions trading price affect the Norwegian economy through several channels. Firstly, allowances mean that the EU ETS will cover activities that gets an emission rate equal to the permit price, which will influence the players to reduce emissions through various adaptations. Second, the remaining emissions occur subject to quotas, and the proportion who do not receive free allowances will give the state the auction revenue / proceeds. Third, quotas purchased in international markets will affect account surplus. This paper outlines various solutions and concludes by recommending a system that easily can be adapted for studies of any interaction between the EU ETS system and other climate policy objectives. The system can also be easily updated to new data.(eb)

  18. Empirical Evidence on Time-Varying Hedging Effectiveness of Emissions Allowances under Departures from the Cost-of-Carry Theory

    Directory of Open Access Journals (Sweden)

    Kai Chang

    2013-01-01

    Full Text Available Under departures from the cost-of-carry theory, traded spot prices and conditional volatility disturbed from futures market have significant impacts on futures price of emissions allowances, and then we propose time-varying hedge ratios and hedging effectiveness estimation using ECM-GARCH model. Our empirical results show that conditional variance, conditional covariance, and their correlation between between spot and futures prices exhibit time-varying trends. Conditional volatility of spot prices, conditional volatility disturbed from futures market, and conditional correlation of market noises implied from spot and futures markets have significant effects on time-varying hedge ratios and hedging effectiveness. In the immature emissions allowances market, market participants optimize portfolio sizes between spot and futures assets using historical market information and then achieve higher risk reduction of assets portfolio revenues; accordingly, we can obtain better hedging effectiveness through time-varying hedge ratios with departures from the cost-of-carry theory.

  19. China's foreign trade and climate change. A case study of CO{sub 2} emissions

    Energy Technology Data Exchange (ETDEWEB)

    Yunfeng, Yan [Business School, East China Normal University, 500 Dongchuan Rd., Shanghai 200241 (China); Laike, Yang [Center of International Finance and Risk Management, East China Normal University, 500 Dongchuan Rd., Shanghai 200241 (China)

    2010-01-15

    The globalization of trade has numerous environmental implications. Trade creates a mechanism for consumers to shift environmental pollution associated with their consumption to other countries. Carbon leakage exerts great influences on international trade and economy. Applying an input-output approach, the paper estimates the amount of carbon dioxide (CO{sub 2}) embodied in China's foreign trade during 1997-2007. It is found that 10.03-26.54% of China's annual CO{sub 2} emissions are produced during the manufacture of export goods destined for foreign consumers, while the CO{sub 2} emissions embodied in China's imports accounted for only 4.40% (1997) and 9.05% (2007) of that. We also estimate that the rest of world avoided emitting 150.18 Mt CO{sub 2} in 1997, increasing to 593 Mt in 2007, as a result of importing goods from China, rather than manufacturing the same type and quantity of goods domestically. During 1997-2007, the net 'additional' global CO{sub 2} emissions resulting from China's exports were 4894 Mt. Then, the paper divides the trade-embodied emissions into scale, composition and technical effect. It was found that scale and composition effect increased the CO{sub 2} emissions embodied in trade while the technical effect offset a small part of them. Finally, its mechanism and policy implications are presented. (author)

  20. China's foreign trade and climate change: A case study of CO{sub 2} emissions

    Energy Technology Data Exchange (ETDEWEB)

    Yan Yunfeng, E-mail: yyf007@126.co [Business School, East China Normal University, 500 Dongchuan Rd., Shanghai 200241 (China); Yang Laike, E-mail: lkyang@bs.ecnu.edu.c [Center of International Finance and Risk Management, East China Normal University, 500 Dongchuan Rd., Shanghai 200241 (China)

    2010-01-15

    The globalization of trade has numerous environmental implications. Trade creates a mechanism for consumers to shift environmental pollution associated with their consumption to other countries. Carbon leakage exerts great influences on international trade and economy. Applying an input-output approach, the paper estimates the amount of carbon dioxide (CO{sub 2}) embodied in China's foreign trade during 1997-2007. It is found that 10.03-26.54% of China's annual CO{sub 2} emissions are produced during the manufacture of export goods destined for foreign consumers, while the CO{sub 2} emissions embodied in China's imports accounted for only 4.40% (1997) and 9.05% (2007) of that. We also estimate that the rest of world avoided emitting 150.18 Mt CO{sub 2} in 1997, increasing to 593 Mt in 2007, as a result of importing goods from China, rather than manufacturing the same type and quantity of goods domestically. During 1997-2007, the net 'additional' global CO{sub 2} emissions resulting from China's exports were 4894 Mt. Then, the paper divides the trade-embodied emissions into scale, composition and technical effect. It was found that scale and composition effect increased the CO{sub 2} emissions embodied in trade while the technical effect offset a small part of them. Finally, its mechanism and policy implications are presented.

  1. Trading in the rain. Rainfall and European power sector emissions. Research note no. 9

    International Nuclear Information System (INIS)

    2006-01-01

    Analysts often say that temperature and rainfall have an impact on the price of CO 2 , as they influence the conditions of electric power supply and demand. Rainfall mainly affects the capacity of hydropower production, the third largest source of electricity in Europe and by far the leading source of renewable energy. The variability of hydroelectric volumes is indeed usually offset by other, higher-emitting sources of electricity, which has repercussions on the European allowances trading market. In 2005, rainfall was unusually low in several European countries: in the Iberian peninsula and in France, drought is believed to have brought about a rise of approximately 15 Mt CO 2 in power sector emissions. In contrast, hydrological conditions were particularly good in the Nordic countries, allowing them to reduce CO 2 emissions in the region as a whole through hydropower-based exports. The additional allowances demand would therefore have been 'only' about 9 Mt CO 2 . To make the interaction with the CO 2 market easier to understand, an indicator of rainfall in Europe must include this compensating phenomenon resulting from the heterogeneity of the climatic conditions and volumes produced in Europe

  2. The impact of international trade on China's industrial carbon emissions since its entry into WTO

    International Nuclear Information System (INIS)

    Ren, Shenggang; Yuan, Baolong; Ma, Xie; Chen, Xiaohong

    2014-01-01

    This paper employs the input–output (IO) approach to analyze the scale and structure of embodied carbon emissions of China's 19 industry sectors during 2001–2011 and constructs a regression model to establish the relationship between energy intensity, per capita output, trade openness, foreign direct investment (FDI), trade comparative advantage, environmental regulation, technology, and CO 2 emission intensity. Our results suggest that: China's international embodied carbon emission balance has been in a state of continuous growth for the period 2001–2011, and China has become a pollution haven; the relationship between per capita output and CO 2 emission is inverse N-typed and China's industries are in the rising stage of the curve; FDI and trade comparative advantage are two main elements boosting China's carbon emissions; trade openness, environmental regulation, and technology will lower the growth rate of China's industrial carbon emissions (ICEs). Consequently, China's policies should center on adjusting the industry structure and scale of FDI inflows, transforming industries with trade comparative advantages into a clean type, facilitating environmental regulation level, and bringing in and developing low-carbon technology to avert China from being a pollution haven. - Highlights: • We first employ a panel dataset of 19 industry sectors in China. • The relationship between per capita output and CO 2 emission is inverse N-typed. • China’s industries are in the rising stage of the inverse N-typed curve. • FDI and trade comparative advantage increase industrial carbon emissions in China

  3. Game theoretic analysis for carbon emission permits trading among multiple world regions with an optimizing global energy model; Saitekikagata sekai energy model ni motozuku tachiikikan CO2 haishutsu kyokasho torihiki no game ronteki bunseki

    Energy Technology Data Exchange (ETDEWEB)

    Akimoto, K.; Matsunaga, A.; Fujii, Y. [Yokohama National University, Yokohama (Japan); Yamaji, K. [The University of Tokyo, Tokyo (Japan)

    1998-10-01

    Carbon emissions which would cause global warming were agreed to be constrained at COP3 in Kyoto. In addition, carton emission permits trading was also approved to be introduced. The emission permits trading is expected to achieve efficient carbon emission reduction, equalizing the marginal costs of the emission reduction for the participating countries. In other words, the permits trading allows participants to reduce emissions where it is least expensive to do so. However, the inadequate introduction of the trading systems may impose unfairly greater burden on some countries, and therefore careful evaluation of the system would be indispensable for its implementation. In this paper, we attempt to analyze the emission permits trading. using the theory of cooperative games with a global energy model of optimization type. We assumed that seven world regions as players participate the permits trading system under the condition of the emission reduction target presented at COP3 and so on, and show the nucleolus of the grand coalition games, and the computational results of primary energy supplies and CO2 shadow prices. The insights of this research indicate that in order to stabilize the grand coalition, a noticeable amount of additional transfer of money would be needed besides the payments associated with the emission permits trading. 10 refs., 7 figs., 5 tabs.

  4. Integration of CCS, emissions trading and volatilities of fuel prices into sustainable energy planning, and its robust optimization

    International Nuclear Information System (INIS)

    Koo, Jamin; Han, Kyusang; Yoon, En Sup

    2011-01-01

    In this paper, a new approach has been proposed that allows a robust optimization of sustainable energy planning over a period of years. It is based on the modified energy flow optimization model (EFOM) and minimizes total costs in planning capacities of power plants and CCS to be added, stripped or retrofitted. In the process, it reduces risks due to a high volatility in fuel prices; it also provides robustness against infeasibility with respect to meeting the required emission level by adopting a penalty constant that corresponds to the price level of emission allowances. In this manner, the proposed methodology enables decision makers to determine the optimal capacities of power plants and/or CCS, as well as volumes of emissions trading in the future that will meet the required emission level and satisfy energy demand from various user-sections with minimum costs and maximum robustness. They can also gain valuable insights on the effects that the price of emission allowances has on the competitiveness of RES and CCS technologies; it may be used in, for example, setting appropriate subsidies and tax policies for promoting greater use of these technologies. The proposed methodology is applied to a case based on directions and volumes of energy flows in South Korea during the year 2008. (author)

  5. Modelling Energy Systems and International Trade in CO2 Emission Quotas - The Kyoto Protocol and Beyond

    International Nuclear Information System (INIS)

    Persson, Tobias A.

    2002-01-01

    A transformation of the energy system in the 21st century is required if the CO 2 concentration in the atmosphere should be stabilized at a level that would prevent dangerous anthropogenic interference with the climate system. The industrialized countries have emitted most of the anthropogenic CO 2 released to the atmosphere since the beginning of the industrial era and still account for roughly two thirds of global fossil fuel related CO 2 emissions. Industrial country CO 2 emissions on a per capita basis are roughly five to ten times higher than those of developing countries. However, a global atmospheric CO 2 concentration target of 450 ppm, if adopted would require that global average per capita CO 2 emissions by the end of this century have to be comparable to those of developing countries today. The industrialized countries would have to reduce their emissions substantially and the emissions in developing countries could not follow a business-as-usual scenario. The transformation of the energy system and abatement of CO 2 emissions would need to occur in industrialized and developing countries. Energy-economy models have been developed to analyze of international trading in CO 2 emission permits. The thesis consists of three papers. The cost of meeting the Kyoto Protocol is estimated in the first paper. The Kyoto Protocol, which defines quantitative greenhouse gas emission commitments for industrialized countries over the period 2008-2012, is the first international agreement setting quantitative goals for abatement of CO 2 emissions from energy systems. The Protocol allows the creation of systems for trade in emission permits whereby countries exceeding their target levels can remain in compliance by purchasing surplus permits from other developed countries. However, a huge carbon surplus, which has been christened hot air, has been created in Russia and Ukraine since 1990 primarily because of the contraction of their economies. The current Unites States

  6. Trading off Aircraft Fuel Burn and NO x Emissions for Optimal Climate Policy.

    Science.gov (United States)

    Freeman, Sarah; Lee, David S; Lim, Ling L; Skowron, Agnieszka; De León, Ruben Rodriguez

    2018-03-06

    Aviation emits pollutants that affect the climate, including CO 2 and NO x , NO x indirectly so, through the formation of tropospheric ozone and reduction of ambient methane. To improve the fuel performance of engines, combustor temperatures and pressures often increase, increasing NO x emissions. Conversely, combustor modifications to reduce NO x may increase CO 2 . Hence, a technology trade-off exists, which also translates to a trade-off between short-lived climate forcers and a long-lived greenhouse gas, CO 2 . Moreover, the NO x -O 3 -CH 4 system responds in a nonlinear manner, according to both aviation emissions and background NO x . A simple climate model was modified to incorporate nonlinearities parametrized from a complex chemistry model. Case studies showed that for a scenario of a 20% reduction in NO x emissions the consequential CO 2 penalty of 2% actually increased the total radiative forcing (RF). For a 2% fuel penalty, NO x emissions needed to be reduced by >43% to realize an overall benefit. Conversely, to ensure that the fuel penalty for a 20% NO x emission reduction did not increase overall forcing, a 0.5% increase in CO 2 was found to be the "break even" point. The time scales of the climate effects of NO x and CO 2 are quite different, necessitating careful analysis of proposed emissions trade-offs.

  7. The impact of CO{sub 2} emissions trading on the European transport sector

    Energy Technology Data Exchange (ETDEWEB)

    Kaageson, Per

    2001-07-01

    The objective of this report is to analyse how a common European scheme for CO{sub 2} emissions trading covering all sectors of society would affect the transport sector. Transport externalities other than CO{sub 2} are assumed to be internalised by kilometer charging. This means road fuels will no longer be subject to taxation. The European Union's commitment under the 1997 Kyoto Protocol can be reached at a marginal abatement cost around 65 Euro per tonne of CO{sub 2} in a case where emissions trading replaces all current taxes on fossil fuels. In a case where emissions trading is supplementary to today's energy and carbon taxes, the current average taxation (45-50 Euro per tonne CO{sub 2}) and the shadow price of the emission permits (33 Euro per tonne) would together give a total marginal abatement cost around 80 Euro per tonne Of CO{sub 2}. Having to buy emission permits would significantly raise the cost of fuel and electricity used in rail, aviation and short sea shipping, as these modes are currently not taxed at all. The resulting long-term (2025) improvement in specific energy efficiency is estimated at around 25 per cent compared to trend for rail and 20 and 40 per cent respectively for aviation and sea transport. A combination of CO{sub 2} emissions trading and km charging would moderately raise the variable cost of driving a gasoline car. The cost of using diesel vehicles would rise considerably in most Member States. Annual mileage per car would therefore decline somewhat. The fuel, however, would become cheaper than today (especially gasoline) and this would reduce the incentive to buy fuel-efficient vehicles. The reform would thus hamper the introduction of new, more efficient, technologies that might be needed for meeting more long-term commitments. Emissions trading would not encourage the introduction of biofuels in road transport. The incremental cost of producing ethanol or RME is much too high and cannot be expected to fall to the

  8. Allowable carbon emissions for medium-to-high mitigation scenarios

    Energy Technology Data Exchange (ETDEWEB)

    Tachiiri, Kaoru; Hargreaves, Julia C.; Annan, James D.; Kawamiya, Michio [Research Inst. for Global Change, Japan Agency for Marine-Earth Science and Technology, Yokohama, (Japan)], e-mail: tachiiri@jamstec.go.jp; Huntingford, Chris [Centre for Ecology and Hydrology, Wallingford (United Kingdom)

    2013-11-15

    Using an ensemble of simulations with an intermediate complexity climate model and in a probabilistic framework, we estimate future ranges of carbon dioxide (CO{sub 2}) emissions in order to follow three medium-high mitigation concentration pathways: RCP2.6, RCP4.5 and SCP4.5 to 2.6. Uncertainty is first estimated by allowing modelled equilibrium climate sensitivity, aerosol forcing and intrinsic physical and biogeochemical processes to vary within widely accepted ranges. Results are then constrained by comparison against contemporary measurements. For both constrained and unconstrained projections, our calculated allowable emissions are close to the standard (harmonised) emission scenarios associated with these pathways. For RCP4.5, which is the most moderate scenario considered in terms of required emission abatement, then after year 2100 very low net emissions are needed to maintain prescribed year 2100 CO{sub 2} concentrations. As expected, RCP2.6 and SCP4.5 to 2.6 require more strict emission reductions. The implication of this is that direct sequestration of carbon dioxide is likely to be required for RCP4.5 or higher mitigation scenarios, to offset any minimum emissions for society to function (the 'emissions floor'). Despite large uncertainties in the physical and biogeochemical processes, constraints from model-observational comparisons support a high degree of confidence in predicting the allowable emissions consistent with a particular concentration pathway. In contrast the uncertainty in the resulting temperature range remains large. For many parameter sets, and especially for RCP2.6, the land will turn into a carbon source within the twenty first century, but the ocean will remain as a carbon sink. For land carbon storage and our modelling framework, major reductions are seen in northern high latitudes and the Amazon basin even after atmospheric CO{sub 2} is stabilised, while for ocean carbon uptake, the tropical ocean regions will be a

  9. The political economy of emissions trading; L'economie politique des marches de permis d'emissions negociables

    Energy Technology Data Exchange (ETDEWEB)

    Hanoteau, J

    2004-06-15

    This thesis is a positive analysis of emissions trading systems' implementation. We explain why allowances are generally granted for free even though normative economic analysis recommends their sale. We show empirically that free tradable permits, source of windfall profit, motivate rent seeking behaviours. The study focuses on the US market for SO{sub 2} emissions allowances. The initial allocation rule resulted from parliamentary discussions that looked like a zero sum game. We formalize it as an endogenous sharing rule, function of lobbying effort, and we test it using political (money) contributions.We analyse theoretically the behaviour of an influenced regulator that has chosen to organize a market for permits and that must still decide on two policy variables: the whole quantity of permits and the way to allocate them initially. We formalize this decisions making process with the common agency model of politics.We show that the choice of an initial allocation rule is not neutral in presence of political market failures (lobbying). The decision to sell the permits or to grant them for free modifies the shareholders' incentive, in a polluting industry, to pressure for or against the reduction of legal emissions.Then, we analyse the public arbitration between the two policy variables when several industrial lobbies play a partially cooperative game for the free permits. The regulator chooses in priority to grant the rights for free rather than to manipulate their quantity, and this constitutes an efficient answer to the political influence. (author)

  10. Review of hidden carbon emissions, trade, and labor income share in China, 2001–2011

    International Nuclear Information System (INIS)

    Wang, Shu-Hong; Song, Ma-Lin

    2014-01-01

    Coordinated development between the economy and the environment is currently one of the most important issues in China. By establishing models concerning labor income share and hidden carbon emissions, and taking trade as the link in their relationship, this study puts forward the scale effects, technological effects, and structural effects that relate to labor income share under the function of trade. We then establish multi-index and multi-indicator constitutive (MIMIC) equation to measure the ratio of hidden carbon emissions to total emissions, which is further considered the basis of the measurement model. Results of regression analysis carried out on labor income share show that hidden carbon emissions do have a positive effect on labor income share. In the meantime, we also prove that under scale effects, technological effects, and the structural effects of trade, hidden carbon emissions affect labor income shares in different directions. Our conclusions and policy implications are obtained from the calculated results. - Highlights: • This study establishes models concerning labor income share and hidden carbon emissions. • MIMIC is established to measure the ratio of hidden carbon emissions to total discharge. • Hidden carbon emissions have a positive effect on labor income share. • Hidden carbon emissions have various effects on the labor income share

  11. Incentives for energy efficiency in the EU emission trading scheme

    Energy Technology Data Exchange (ETDEWEB)

    Schleich, Joachim [Fraunhofer-Institut fuer Systemtechnik und Innovationsforschung (ISI), Karlsruhe (Germany); Virginia Polytechnic Inst. and State Univ., Blacksburg, VA (United States); Rogge, Karoline [Fraunhofer-Institut fuer Systemtechnik und Innovationsforschung (ISI), Karlsruhe (Germany); ETH Zurich (Switzerland). Group for Sustainability and Technology; Betz, Regina [New South Wales Univ. (Australia). Centre for Energy and Environmental Markets

    2008-07-01

    This paper explores the incentives for energy efficiency induced by the European Union Emissions Trading Scheme (EU ETS) for installations in the energy and industry sectors. Our analysis of the National Allocation Plans for 27 EU Member States for phase 2 of the EU ETS (2008-2012) suggests that the price and cost effects for improvements in carbon and energy efficiency in the energy and industry sectors will be stronger than in phase 1 (2005-2007), but only because the European Commission has substantially reduced the number of allowances to be allocated by the Member States. To the extent that companies from these sectors (notably power producers) pass through the extra costs for carbon, higher prices for allowances translate into stronger incentives for demand- side energy efficiency. With the cuts in allocation to energy and industry sectors these will be forced to greater reductions, thus the non-ET sectors like household, tertiary and transport will have to reduce less, which is more in line with the cost-efficient share of emission reductions. The findings also imply that domestic efficiency improvements in the energy and industry sectors may remain limited since companies can make substantial use of credits from the Kyoto mechanisms. The analysis of the rules for existing installations, new projects and closures suggests that incentives for energy efficiency are higher in phase 2 than in phase 1 because of the increased application of benchmarking to new and existing installations and because a lower share of allowances will be allocated for free. Nevertheless, there is still ample scope to further improve the EU ETS so that the full potential for energy efficiency can be realized. (orig.)

  12. Forecasting the market for SO2 emission allowances under uncertainty

    International Nuclear Information System (INIS)

    Hanson, D.; Molburg, J.; Fisher, R.; Boyd, G.; Pandola, G.; Lurie, G.; Taxon, T.

    1991-01-01

    This paper deals with the effects of uncertainty and risk aversion on market outcomes for SO 2 emission allowance prices and on electric utility compliance choices. The 1990 Clean Air Act Amendments (CAAA), which are briefly reviewed here, provide for about twice as many SO 2 allowances to be issued per year in Phase 1 (1995--1999) than in Phase 2. Considering the scrubber incentives in Phase 1, there is likely to be substantial emission banking for use in Phase 2. Allowance prices are expected to increase over time at a rate less than the return on alternative investments, so utilities which are risk neutral, or potential speculators in the allowance market, are not expected to bank allowances. The allowances will be banked by utilities that are risk averse. The Argonne Utility Simulation Model (ARGUS2) is being revised to incorporate the provisions of the CAAA acid rain title and to simulate SO 2 allowance prices, compliance choices, capacity expansion, system dispatch, fuel use, and emissions using a unit level data base and alternative scenario assumptions. 1 fig

  13. Influencing Factors of Companies’ Behavior for Mitigation: A Discussion within the Context of Emission Trading Scheme

    Directory of Open Access Journals (Sweden)

    Yidan Chen

    2018-02-01

    Full Text Available China built pilot carbon emission trading schemes in seven regions and established a national carbon trading market in electricity sector in December 2017. This study conducted a questionnaire survey of 570 companies in 29 regions nationwide and found that companies still need to improve mitigation measures regarding fossil fuel combustion, production technology, output adjustment and environmental management. By establishing regression models, influencing factors of carbon emission reduction are identified. Pilot emission trading policy has a significant impact on company emission reduction behaviors. Companies inside or outside the pilot region respond differently to the influencing factors. Companies inside emphasize more on energy price and mitigation potential, while enterprises outside pay more attention to investment and familiarity with technology and policy.

  14. Upstream vs. downstream CO2 trading: A comparison for the electricity context

    International Nuclear Information System (INIS)

    Hobbs, Benjamin F.; Bushnell, James; Wolak, Frank A.

    2010-01-01

    In electricity, 'downstream' CO 2 regulation requires retail suppliers to buy energy from a mix of sources so that their weighted emissions satisfy a standard. It has been argued that such 'load-based' regulation would solve emissions leakage, cost consumers less, and provide more incentive for energy efficiency than traditional source-based cap-and-trade programs. Because pure load-based trading complicates spot power markets, variants (GEAC and CO 2 RC) that separate emissions attributes from energy have been proposed. When all generators and consumers come under such a system, these load-based programs are equivalent to source-based trading in which emissions allowances are allocated by various rules, and have no necessary cost advantage. The GEAC and CO 2 RC systems are equivalent to giving allowances free to generators, and requiring consumers either to subsidize generation or buy back excess allowances, respectively. As avoided energy costs under source-based and pure load-based trading are equal, the latter provides no additional incentive for energy efficiency. The speculative benefits of load-based systems are unjustified in light of their additional administrative complexity and cost, the threat that they pose to the competitiveness and efficiency of electricity spot markets, and the complications that would arise when transition to a federal cap-and-trade system occurs.

  15. National CO2 emissions trading in European perspective; Nationale CO2-emissiehandel in Europees perspectief

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2003-06-01

    This report is the reaction of the Social and economic council (SER) in the Netherlands to the request of the Dutch Ministry of Housing, Spatial Planning en Environment (VROM) to formulate an advice on the final report of the Committee CO2 Trade (a.k.a the Vogtlander Committee). This Committee has drafted a proposal for a CO2 emission trade system in the Netherlands. The SER has also taken into account the proposal of the European Committee on a guideline for CO2 emission trade in the European Union (EU)

  16. Biomass District Energy Trigeneration Systems: Emissions Reduction and Financial Impact

    International Nuclear Information System (INIS)

    Rentizelas, A.; Tolis, A.; Tatsiopoulos, I.

    2009-01-01

    Biomass cogeneration is widely used for district heating applications in central and northern Europe. Biomass trigeneration on the other hand, constitutes an innovative renewable energy application. In this work, an approved United Nations Framework Convention on Climate Change baseline methodology has been extended to allow the examination of biomass trigeneration applications. The methodology is applied to a case study in Greece to investigate various environmental and financial aspects of this type of applications. The results suggest that trigeneration may lead to significant emissions reduction compared to using fossil fuels or even biomass cogeneration and electricity generation. The emissions reduction achieved may be materialized into a considerable revenue stream for the project, if traded through a trading mechanism such as the European Union Greenhouse Gas Emission Trading Scheme. A sensitivity analysis has been performed to compensate for the high volatility of the emission allowances' value and the immaturity of the EU Trading Scheme, which prevent a reliable estimation of the related revenue. The work concludes that emission allowances trading may develop into one of the major revenue streams of biomass trigeneration projects, significantly increasing their financial yield and attractiveness. The impact on the yield is significant even for low future values of emission allowances and could become the main income revenue source of such projects, if emission allowances increase their value substantially. The application of trigeneration for district energy proves to lead to increased environmental and financial benefits compared to the cogeneration or electricity generation cases

  17. Climate protection and emission trading in the agriculture; Klimaschutz und Emissionshandel in der Landwirtschaft

    Energy Technology Data Exchange (ETDEWEB)

    Luenenbuerger, Benjamin

    2013-01-15

    The percentage of the agriculture in the greenhouse-gas emissions in Germany amounts 7.1% in the year 2010. Despite its importance, climate protection instruments in the area of the German agriculture are still not developed. There are hardly special regulatory, informational or market-based instruments for the climate protection in the agriculture. The question arises whether the emission trading can be a suitable instrument for climate protection in the agriculture. Thus, the opportunities of the emission trading in the agriculture are investigated. Moreover, alternative and additional instruments of climate protection are considered with respect to the agriculture.

  18. Cost, Emissions, and Customer Service Trade-Off Analysis In Pickup and Delivery Systems.

    Science.gov (United States)

    2011-05-01

    This research offers a novel formulation for including emissions into fleet assignment and vehicle routing, and for the : trade-offs faced by fleet operators between cost, emissions, and service quality. This approach enables evaluation of : the impa...

  19. Benchmarking and the allocation of emission rights. European Parliament agreement on CO2 emission trade

    International Nuclear Information System (INIS)

    Harmsen, H.

    2003-01-01

    July 2, 2003, the Parliament of the European Union approved the directive for CO2 emission trade, which means that the energy-intensive industry and businesses in Europe have to deal with cost for CO2 emission from 2005 onwards. It is estimated that the Dutch government will have to distribute circa 90 million ton of CO2 emission rights (1.8 billion euro at a price of 20 euro per ton CO2). In order to realize a fair and transparent distribution of the rights use can be made of the Covenant Benchmarking for Energy Efficiency [nl

  20. Carbon Emission Trading. A survey of regional and national emission trading schemes outside the European Union; Handel med utslaeppsraetter. Kartlaeggning av EU-externa regionala och nationella system foer handel med koldioxidutslaepp

    Energy Technology Data Exchange (ETDEWEB)

    Widegren, Karin

    2007-03-15

    For those countries that ratified the Kyoto Protocol this is naturally one of the most important incentives for the introduction of mandatory measures such as emissions trading schemes. At the same time, there are major similarities between the political discussions in countries that ratified the Kyoto Protocol and countries that did not. In all countries there is a great interest in market-based regulation such as emissions trading, at the same time as the political difficulties in achieving unity on the limits and shaping of the systems are very substantial. In countries with a federal government, operators at the regional level frequently have a prominent role. The driving force for the regional players is frequently a desire to influence the federal policy from below at the same time as goodwill is created and a learning process is developed that may become a competitive advantage the day a federal system is introduced. Regional initiatives and the introduction of different voluntary programs for emissions trading have also contributed to an increased interest on the part of industry and industrial operators. They have in several cases actively participated in the design of such programs. When it comes to the operational status of the different schemes none of the studied countries is expected to have a nationally compulsory trading system in operation prior to 2010. Most initiatives are at the initial stage and have been delayed many times on account of significant administrative and political difficulties. It may be established that as regards market volume, liquidity and practical experiences EU ETS is in a class of its own. The most common trading system that is planned or debated is of the type 'cap and trade'. Systems focus almost without exception on the energy sector and on emissions of carbon dioxide. Frequently, proposals include a wide variety of approved emission credits (offset). The design of these emission credits often reflects other

  1. Carbon Emission Trading. A survey of regional and national emission trading schemes outside the European Union; Handel med utslaeppsraetter. Kartlaeggning av EU-externa regionala och nationella system foer handel med koldioxidutslaepp

    Energy Technology Data Exchange (ETDEWEB)

    Widegren, Karin

    2007-03-15

    For those countries that ratified the Kyoto Protocol this is naturally one of the most important incentives for the introduction of mandatory measures such as emissions trading schemes. At the same time, there are major similarities between the political discussions in countries that ratified the Kyoto Protocol and countries that did not. In all countries there is a great interest in market-based regulation such as emissions trading, at the same time as the political difficulties in achieving unity on the limits and shaping of the systems are very substantial. In countries with a federal government, operators at the regional level frequently have a prominent role. The driving force for the regional players is frequently a desire to influence the federal policy from below at the same time as goodwill is created and a learning process is developed that may become a competitive advantage the day a federal system is introduced. Regional initiatives and the introduction of different voluntary programs for emissions trading have also contributed to an increased interest on the part of industry and industrial operators. They have in several cases actively participated in the design of such programs. When it comes to the operational status of the different schemes none of the studied countries is expected to have a nationally compulsory trading system in operation prior to 2010. Most initiatives are at the initial stage and have been delayed many times on account of significant administrative and political difficulties. It may be established that as regards market volume, liquidity and practical experiences EU ETS is in a class of its own. The most common trading system that is planned or debated is of the type 'cap and trade'. Systems focus almost without exception on the energy sector and on emissions of carbon dioxide. Frequently, proposals include a wide variety of approved emission credits (offset). The design of these emission credits often reflects other political

  2. EU Energy Law. Volume 4. The EU Greenhouse Gas Emissions Trading Scheme

    International Nuclear Information System (INIS)

    Delbeke, J.; Hartridge, O.; Lefevere, J.; Meadows, D.; Runge-Metzger, A.; Slingenberg, Y.; Vainio, M.; Vis, P.; Zapfel, P.

    2006-06-01

    Gives valuable insights in the why's, how's, trade-offs, and critical design choices of the Emission Trading System of the European Union (EU ETS). The chapters deal with (1) The EU ETS: the result of a decade of policy action on the economic dimension of EU environmental policy; (2) The international climate policy developments of the 1990s: UNFCCC, the Kyoto Protocol, the Marrakech Agreements and the EU's Kyoto ratification decision; (3) Emissions trading: What is it? Design options and misconceptions; (4) The EU ETS Directive 2003/87/EEC explained; (5) The EU ETS Linking Directive explained; (6) The economic efficiency benefits of the EU ETS; (7) The NAP I experience; (8) The key importance of the Registry Regulation and of solid monitoring and verification; and (9) The potential role of the EU ETS for the elaboration of the post-2012 international climate regime. Conclusions are in chapter 10

  3. Cooperative Emissions Trading Game: International Permit Market Dominated by Buyers.

    Science.gov (United States)

    Honjo, Keita

    2015-01-01

    Rapid reduction of anthropogenic greenhouse gas emissions is required to mitigate disastrous impacts of climate change. The Kyoto Protocol introduced international emissions trading (IET) to accelerate the reduction of carbon dioxide (CO2) emissions. The IET controls CO2 emissions through the allocation of marketable emission permits to sovereign countries. The costs for acquiring additional permits provide buyers with an incentive to reduce their CO2 emissions. However, permit price has declined to a low level during the first commitment period (CP1). The downward trend in permit price is attributed to deficiencies of the Kyoto Protocol: weak compliance enforcement, the generous allocation of permits to transition economies (hot air), and the withdrawal of the US. These deficiencies created a buyer's market dominated by price-making buyers. In this paper, I develop a coalitional game of the IET, and demonstrate that permit buyers have dominant bargaining power. In my model, called cooperative emissions trading (CET) game, a buyer purchases permits from sellers only if the buyer forms a coalition with the sellers. Permit price is determined by bargaining among the coalition members. I evaluated the demand-side and supply-side bargaining power (DBP and SBP) using Shapley value, and obtained the following results: (1) Permit price is given by the product of the buyer's willingness-to-pay and the SBP (= 1 - DBP). (2) The DBP is greater than or equal to the SBP. These results indicate that buyers can suppress permit price to low levels through bargaining. The deficiencies of the Kyoto Protocol enhance the DBP, and contribute to the demand-side dominance in the international permit market.

  4. Unilateral regulation of bilateral trade in greenhouse gas emission permits

    International Nuclear Information System (INIS)

    Rehdanz, Katrin; Tol, Richard S.J.

    2005-01-01

    This paper considers the coordination of domestic markets for tradable emission permits where countries determine their own emission reduction targets, using a two-country model. Linking such schemes is beneficial to both countries but may cause the exporting country to decrease its emission reduction target and export more permits. This in turn would not only reduce the costs for both countries as less emissions have to be reduced, but it also lowers the environmental benefits of the importing country. One price instrument (tariff) and two quantity instruments (discount, quota) to prevent the exporting country from issuing more permits are examined. Each instrument restricts trade and alters the terms of trade for the two countries. The importing country (and regulator) prefers an import tariff and an import quota to a carbon discount. If the exporting country releases additional permits, the importing country should not try to keep total emissions constant, as that would be ineffective and maybe even counterproductive. Instead, the importing country should aim to keep the total import constant; this would impose costs on the exporting country that are independent of the policy instrument; an import quota would be the cheapest option for the importing country. An import quota would also stress the idea of supplementary of the flexible mechanism as it increases the share of emissions reduced domestically. Compliance and liability issues constrain the market further. However, both the importing and the exporting country would prefer that the permit seller is liable in case of non-compliance, as sellers' liability would less constrain the market

  5. The central importance of the EU emission trading scheme for achievement of the German climate protection target of 40% until 2020

    International Nuclear Information System (INIS)

    Hermann, Hauke; Cludius, Johanna

    2014-02-01

    Both Germany and the European Union have set themselves targets for the reduction of greenhouse gas (GHG) emissions. The EU was the forerunner in 2008 when it adopted the Climate and Energy package and set a target of reducing GHG emissions by 20 % by 2020 compared to 1990. Two years later, Germany adopted a range of national GHG targets in the context of the German government's Energy Concept. This includes a 40% emissions reduction target to be met by 2020. One of the main instruments for achieving GHG emissions reduction targets is the EU Emissions Trading Scheme (EU ETS), which covers all large industrial and combustion installations in Europe. According to the agreement made in 2008 (Climate and Energy Package), the effort to achieve the EU's 20 % reduction target by 2020 was split between the ETS sector (2/3 of the reduction effort, representing a 21 % reduction in GHG emissions for installations covered under the ETS compared to 2005) and the non-ETS sector (1/3 of the reduction effort, representing a 10 % reduction compared to 2005). Logically, GHG emissions reductions occurring in German ETS installations count both towards the EU and the national target. This research project has been commissioned to analyse whether the ETS in its cur-rent design can contribute its fair share in efforts to meet the national emissions reduc-tion target. This question is particularly relevant in light of the following considerations: - The new German Coalition Agreement, signed in December 2013, reiterated the national target of a 40 % reduction of GHG emissions by 2020 compared to 1990 levels. - At the same time, the new Coalition Agreement stated that changes to the ETS are only to be considered if the EU GHG emissions reduction target will not be met. - There is a surplus of CO2 allowances on the ETS market, which undermines the credibility of the instrument as well as the integrity of the emissions reduction tar-gets (both European and national). At the same time, the

  6. Norway and the EU may trade emission quotas from 2005

    International Nuclear Information System (INIS)

    Tjernshaugen, Andreas

    2002-01-01

    The EU commission wants to implement quota trade with climate gases from 2005. The proposal, which came in October 2001, describes a quota system limited to the emission of CO 2 in certain industrial sectors. Sources like road traffic and heating of buildings are not comprised by the proposal. It is intended that the agreement will later include more climate gases and more types of activities. This expansion of the implementation becomes most important from 2008-2012, for then the Kyoto Protocol sets the limits for six types of climate gases and lays down rules for international trade with emission quotas. Norway is likely to go in for a limited quota system for 2005 to 2007 and apply for an agreement with the quota market of the EU. It is not certain, however, that the Norwegian authorities will limit the national quota system the same way

  7. How to design greenhouse gas trading in the EU?

    DEFF Research Database (Denmark)

    Svendsen, Gert Tinggaard; Vesterdal, Morten

    2001-01-01

    A new and remarkable Green Paper about how to trade Greenhouse gases (GHG) in the EU has recently been published by the Commission of the European Union. This to achieve the stated 8% reduction target level. The Green Paper raises ten questions about how greenhouse gas permit trading should...... be designed in the EU before year 2005. These ten questions can be compressed into four main issues, namely target group, allocation of emission allowances, how to mix emission trading with other instruments and fourth enforcement. In the literature, there is a strong need to guide decision...... concerning the future design of GHG permit trading in the EU....

  8. How to Design Greenhouse Gas Trading in the EU?

    DEFF Research Database (Denmark)

    Svendsen, Gert Tinggaard; Vesterdal, Morten

    2003-01-01

    A new and remarkable Green Paper about how to trade Greenhouse gases (GHG) in the EU has recently been published by the Commission of the European Union. This to achieve the stated 8% reduction target level. The Green Paper raises ten questions about how greenhouse gas permit trading should...... be designed in the EU before year 2005. These ten questions can be compressed into four main issues, namely target group, allocation of emission allowances, how to mix emission trading with other instruments and fourth enforcement. In the literature, there is a strong need to guide decision...... concerning the future design of GHG permit trading in the EU. Udgivelsesdato: NOV...

  9. Explaining European Emission Allowance Price Dynamics: Evidence from Phase II

    OpenAIRE

    Wilfried Rickels; Dennis Görlich; Gerrit Oberst

    2010-01-01

    In 2005, the European Emission Trading Scheme (EU-ETS) established a new commodity: the right to emit a ton of CO2 (EUA). Since its launch, the corresponding price has shown rather turbulent dynamics, including nervous reactions to policy announcements and a price collapse after a visible over-allocation in Phase I. As a consequence, the question whether fundamental factors (fossil fuel prices, economic activity, weather) affect the EUA price remained partially unresolved. Today, being halfwa...

  10. Emissions trading to combat climate change: The impact of scheme design on transaction costs

    OpenAIRE

    Betz, Regina

    2006-01-01

    This paper explores the likely impact of emissions trading design on transaction costs. Transaction costs include both the costs for the private sector to comply with the scheme rules and the costs of scheme administration. In economic theory transaction costs are often assumed to be zero. But transaction costs are real costs and there is no reason for treating them differently to other costs. Thus, in setting up an emissions trading scheme, transaction costs have to be taken into account in ...

  11. Emission trading schemes: potential revenue effects, compliance costs and overall tax policy issues

    International Nuclear Information System (INIS)

    Pope, Jeff; Owen, Anthony D.

    2009-01-01

    The case for the imposition of carbon (emission) taxes or tradable carbon permits in important tax jurisdictions is arguably strong, based upon the polluter pays principle first proposed by Pigou almost a century ago. This paper briefly reviews the arguments for and against these market-based instruments, and discusses their relative advantages and disadvantages in a practical context. In the case of Australia, the revenue effect of the proposed tradable carbon permits scheme is estimated to be A$11.5 billion in 2010-11. For comparison, this is roughly equivalent to a quarter of the revenue from the Goods and Services Tax. The paper focuses on three neglected aspects of climate change taxation discussion to date: how much tax revenue is likely to be raised, and the administrative and compliance costs of an emissions trading scheme, with particular reference to Australia. In discussing these issues, the paper draws upon selected and relevant international experience, particularly the European Union emissions trading scheme. The challenges of an emissions trading scheme, including integration with the existing tax system, particularly in an Australian context, are also discussed. The paper concludes by emphasising the key challenges and issues facing this 'ultimate externality' debate, particularly from a taxation policy perspective.

  12. Environmental challenges and opportunities of the evolving North American electricity market : Design and legal considerations for North American emissions trading

    International Nuclear Information System (INIS)

    Russell, D.

    2002-06-01

    When considering a multi-pollutant emissions trading system covering Mexico, the United States and Canada, several issues must be looked at. Such a system would result from the changing environment in the electricity sector. An understanding of the architectural elements involved in the design of an emissions trading regime was the stated goal for the preparation of this working paper. In the event of the implementation of a North American emissions trading system, some potential interface issues resulting from the North American Free Trade Agreement (NAFTA) were identified. An overview of the emissions trading systems currently in place in North America and their results was included in a background paper, as well as a description of architectural elements comprised in the design of an emissions trading system, the implications of cross-border harmonization taking into account environmental integrity and economic efficiency, and potential trade issues. This paper was circulated among a broad section of policy experts in environmental matters, and was then discussed at an informal workshop in December 2001, attended by 25 cross-sectoral experts. The author also identified several areas where further work is required. refs., 2 tabs

  13. International trade and carbon emissions: The role of Chinese institutional and policy reforms.

    Science.gov (United States)

    Andersson, Fredrik N G

    2018-01-01

    The carbon dioxide embodied in Chinese exports to developed countries increased rapidly from 1995 to 2008. We test the extent to which institutional reforms in China can explain this increase. We focus on five areas of reforms: trade liberalization, environmental institutions, legal and property rights, institutional risk and exchange rate policy. Our results show that trade liberalization, weak environmental institutions, exchange rate policy, and legal and property rights affect emissions. Our results also indicate that the lack of reform in the utilities sector is an important factor in the rapid increase in embodied emissions. Copyright © 2017 Elsevier Ltd. All rights reserved.

  14. Evaluating carbon dioxide emissions in international trade of China

    International Nuclear Information System (INIS)

    Lin Boqiang; Sun Chuanwang

    2010-01-01

    China is the world's largest emitter of carbon dioxide (CO 2 ). As exports account for about one-third of China's GDP, the CO 2 emissions are related to not only China's own consumption but also external demand. Using the input-output analysis (IOA), we analyze the embodied CO 2 emissions of China's import and export. Our results show that about 3357 million tons CO 2 emissions were embodied in the exports and the emissions avoided by imports (EAI) were 2333 million tons in 2005. The average contribution to embodied emission factors by electricity generation was over 35%. And that by cement production was about 20%. It implies that the production-based emissions of China are more than the consumption-based emissions, which is evidence that carbon leakage occurs under the current climate policies and international trade rules. In addition to the call for a new global framework to allocate emission responsibilities, China should make great efforts to improve its energy efficiency, carry out electricity pricing reforms and increase renewable energy. In particular, to use advanced technology in cement production will be helpful to China's CO 2 abatement.

  15. Impact of inter-sectoral trade on national and global CO2 emissions: An empirical analysis of China and US

    International Nuclear Information System (INIS)

    Guo Jie; Zou Lele; Wei Yiming

    2010-01-01

    This paper attempts to discuss the CO 2 emissions embodied in Sino-US international trade using a sector approach. Based on an input-output model established in this study, we quantify the impact of Sino-US international trade on national and global CO 2 emissions. Our initial findings reveal that: In 2005, the US reduced 190.13 Mt CO 2 emissions through the consumption of imported goods from China, while increasing global CO 2 emissions by about 515.25 Mt. Similarly, China reduced 178.62 Mt CO 2 emissions through the consumption of US goods, while reducing global CO 2 emissions by 129.93 Mt. Sino-US international trade increased global CO 2 emissions by 385.32 Mt as a whole, of which the Chemical, Fabricated Metal Products, Non-metallic Mineral Products and Transportation Equipment sectors contributed an 86.71% share. Therefore, we suggest that accelerating the adjustment of China's trade structure and export of US advanced technologies and experience related to clean production and energy efficiency to China as the way to reduce the negative impact of Sino-US trade on national and global CO 2 emissions. This behavior should take into account the processing and manufacturing industries as a priority, especially the Chemical, Fabricated Metal Products, Non-metallic Mineral Products and Transportation Equipment sectors.

  16. Emission Permits trade between the Nordic and Baltic Countries

    Energy Technology Data Exchange (ETDEWEB)

    Alm, Leif Kristian

    2000-05-01

    A bottom-up technology oriented model of the energy systems in the Nordic and Baltic countries have been constructed and used for analysing an optimal set of energy and emission trading within the region. The model used is MARKAL, which has been developed within the IEA-ETSAP. The analyses are based on national emission levels agreed on in the Kyoto protocol (and the following burden sharing negotiations within the European Union), and with an additional strengthening after 2010. Only energy related CO{sub 2} emissions are explicitly considered. Nuclear power in Sweden is assumed to be phased out. The results show that especially Norway and Sweden have large abatement costs when acting alone, whale the Baltic countries will probably not need to take domestic actions due to the Kyoto protocol if they act alone, as the restructuring of their economies in the beginning of the 1990ties cut emissions (and their economies) dramatically. It is shown that emission trading among the Nordic and Baltic countries can reduce abatement costs among the Nordic countries significantly, possibly down to a level equivalent to a world market (Annex I) permit price. Extending the Nordic common electricity market to Balticum will have minor influence on overall energy system costs. There is no pronounced direction for net electricity flow between the Nordic and Baltic countries. High marginal costs during peak hours in Balticum indicate that imports of Nordic hydro power during peak-hours could be a cost-effective option. This possibility could be implemented with a subsea AC/DC connection between Sweden and Latvia. It is politically viable to develop more hydropower in Norway, this country will be the major electricity exporter in the region, while Sweden will be the main importer. Changing scenario assumptions, i.e. no more Norwegian hydropower, but life extension of Swedish nuclear power, could change this picture. (author)

  17. Assessment of China's virtual air pollution transport embodied in trade by using a consumption-based emission inventory

    Science.gov (United States)

    Zhao, H. Y.; Zhang, Q.; Guan, D. B.; Davis, S. J.; Liu, Z.; Huo, H.; Lin, J. T.; Liu, W. D.; He, K. B.

    2015-05-01

    Substantial anthropogenic emissions from China have resulted in serious air pollution, and this has generated considerable academic and public concern. The physical transport of air pollutants in the atmosphere has been extensively investigated; however, understanding the mechanisms how the pollutant was transferred through economic and trade activities remains a challenge. For the first time, we quantified and tracked China's air pollutant emission flows embodied in interprovincial trade, using a multiregional input-output model framework. Trade relative emissions for four key air pollutants (primary fine particle matter, sulfur dioxide, nitrogen oxides and non-methane volatile organic compounds) were assessed for 2007 in each Chinese province. We found that emissions were significantly redistributed among provinces owing to interprovincial trade. Large amounts of emissions were embodied in the imports of eastern regions from northern and central regions, and these were determined by differences in regional economic status and environmental policy. It is suggested that measures should be introduced to reduce air pollution by integrating cross-regional consumers and producers within national agreements to encourage efficiency improvement in the supply chain and optimize consumption structure internationally. The consumption-based air pollutant emission inventory developed in this work can be further used to attribute pollution to various economic activities and final demand types with the aid of air quality models.

  18. Blockchain Enhanced Emission Trading Framework in Fashion Apparel Manufacturing Industry

    Directory of Open Access Journals (Sweden)

    Bailu Fu

    2018-04-01

    Full Text Available Motivated by the recent blockchain technology originally built for bitcoin transactions, various industries are exploring the opportunities to redefine their existing operational systems. In this study, an innovative environmentally sustainable solution is proposed for the fashion apparel manufacturing industry (FAMI, which is energized by blockchain. Incorporating the Emission Trading Scheme (ETS, and a novel “emission link” system, the proposed framework exposes carbon emission to the public and establishes a feature to reduce the emissions for all key steps of clothing making. Fully compatible with Industry 4.0, blockchain provides decentralization, transparency, automation, and immutability characteristics to the proposed framework. Specifically, the blockchain supported ETS framework, the carbon emissions of clothing manufacturing life cycle, and the emission link powered procedures are introduced in detail. A case study is provided to demonstrate the carbon emission evaluation procedure. Finally, a multi-criteria evaluation is performed to demonstrate the benefits and drawbacks of the proposed system.

  19. International greenhouse gas emissions trading. Who should be held liable for the non-compliance by sellers?

    International Nuclear Information System (INIS)

    Zhang, Zhong Xiang

    1999-01-01

    Article 17 of the Kyoto Protocol authorizes emissions trading, but the rules governing emissions trading have been deferred to subsequent conferences. In designing and implementing an international greenhouse gas (GHG) emissions trading scheme, assigning liability has been considered to be one of the most challenging issues. This article discusses a variety of the rules for accountability under international GHG emissions trading. It indicates that a 'buyer beware' liability is effective only to the extent that it puts additional pressure on sellers to comply with their commitments because after all sellers exercise great, if not complete, control over whether or not they comply with their commitments. Because putting such a pressure on sellers to develop effective compliance systems is not without costs to buyers, a 'buyer beware' liability should thus be imposed only in the case where non-compliance of sellers is virtually certain to occur. Moreover, in determining the optimal combination of these not-mutually-exclusive rules for accountability that are discussed in the article, the marginal benefits of adding one rule needs to be weighted against the increased costs of doing so. 12 refs

  20. A basis for greenhouse gas trading in agriculture : Final report of the emission reduction trading protocol team

    International Nuclear Information System (INIS)

    2002-01-01

    A link has been established between increasing levels of greenhouse gases in the atmosphere and the rise in global temperatures. The burning of fossil fuels, land use changes, agricultural and industrial activities play a large part in the increase of greenhouse gases and result in in changes to temperature, precipitation and weather patterns. The two methods that can be used to reduce the buildup of greenhouse gases in the atmosphere are the reduction of the gases and the sequestration of carbon dioxide (carbon dioxide is absorbed) into terrestrial processes. Several policy options are being considered to effect this reduction in buildup, and one of those includes the implementation of a tradable system of emission permits. Such a scenario would involve the agricultural sector removing and reducing on-farm emissions of greenhouse gases, thereby earning it credits that could then be sold to those industries that face tougher greenhouse gases control costs. The study led to several findings: (1) trades in carbon dioxide in the Albertan agricultural sector and changes in agricultural practices could lead to reductions of up to 5 million tonnes per year to 2008, (2) the sector is in a good position to trade carbon removals and credits into a large final emitter cap and trade system, (3) some uncertainties in the policy area remain, (4) the early years of trading are not risk-free, and (5) the risks are being hedged through a number of mechanisms and tools that have already been identified. 18 refs., 3 tabs., 3 figs

  1. Rise and fall of the NOx emissions trade; Opkomst en ondergang van NOx-emissiehandel

    Energy Technology Data Exchange (ETDEWEB)

    Van der Velde, R. [Royal Haskoning DHV, Amersfoort (Netherlands); Van der Kolk, J. [Van der Kolk Advies, Soest (Netherlands)

    2013-04-15

    In 2005, the Netherlands started NOx emission trading. In 2014 they are terminating these activities. Are they stopping because the targets have been realized? This article provides an overview of the developments and experiences that have ultimately led to the termination of the NOx emission trade in the Netherlands [Dutch] In 2005 is Nederland begonnen in NOx-emissiehandel. In 2014 stoppen we er weer mee. Stoppen we omdat de doelen zijn gehaald? Een overzicht wordt gegeven van de ontwikkelingen en ervaringen die uiteindelijk hebben geleid tot beeindiging van de NOx-emissiehandel in Nederland.

  2. CO2 emissions, energy consumption, trade and income: A comparative analysis of China and India

    International Nuclear Information System (INIS)

    Jayanthakumaran, Kankesu; Verma, Reetu; Liu Ying

    2012-01-01

    In order to prevent the destabilisation of the Earth's biosphere, CO 2 emissions must be reduced quickly and significantly. The causes of CO 2 emissions by individual countries need to be apprehended in order to understand the processes required for reducing emissions around the globe. China and India are the two largest transitional countries and growing economies, but are in two entirely different categories in terms of structural changes in growth, trade and energy use. CO 2 emissions from the burning of fossil fuels have significantly increased in the recent past. This paper compares China and India using the bounds testing approach to cointegration and the ARDL methodology to test the long- and short-run relationships between growth, trade, energy use and endogenously determined structural breaks. The CO 2 emissions in China were influenced by per capita income, structural changes and energy consumption. A similar causal connection cannot be established for India with regard to structural changes and CO 2 emissions, because India's informal economy is much larger than China's. India possesses an extraordinarily large number of micro-enterprises that are low energy consumers and not competitive enough to reach international markets. Understanding these contrasting scenarios is prerequisite to reaching an international agreement on climate change affecting these two countries. - Highlights: ► The bounds testing approach to cointegration and the ARDL methodology were used to test CO 2 emissions–energy consumption–income–international trade nexus in China and India. ► The CO 2 emissions in China were influenced by structural changes and associated energy consumption, income and foreign trade. ► A similar causal connection (structural change) cannot be established in India. ► Understanding these contrasting scenarios is prerequisite to reaching an international agreement on climate change affecting these countries.

  3. Carbon dioxide emission and economic growth of China-the role of international trade.

    Science.gov (United States)

    Boamah, Kofi Baah; Du, Jianguo; Bediako, Isaac Asare; Boamah, Angela Jacinta; Abdul-Rasheed, Alhassan Alolo; Owusu, Samuel Mensah

    2017-05-01

    This study investigates the role of international trade in mitigating carbon dioxide emission as a nation economically advances. This study disaggregated the international trade into total exports and total imports. A multivariate model framework was estimated for the time series data for the period of 1970-2014. The quantile regression detected all the essential relationship, which hitherto, the traditional ordinary least squares could not capture. A cointegration relationship was confirmed using the Johansen cointegration model. The findings of the Granger causality revealed the presence of a uni-directional Granger causality running from energy consumption to economic growth; from import to economic growth; from imports to exports; and from urbanisation to economic growth, exports and imports. Our study established the presence of long-run relationships amongst carbon dioxide emission, economic growth, energy consumption, imports, exports and urbanisation. A bootstrap method was further utilised to reassess the evidence of the Granger causality, of which the results affirmed the Granger causality in the long run. This study confirmed a long-run N-shaped relationship between economic growth and carbon emission, under the estimated cubic environmental Kuznet curve framework, from the perspective of China. The recommendation therefore is that China as export leader should transform its trade growth mode by reducing the level of carbon dioxide emission and strengthening its international cooperation as it embraces more environmental protectionisms.

  4. Clean coal technologies and possible emission trading regimes in the Asia-Pacific region

    International Nuclear Information System (INIS)

    Torok, S.

    1992-01-01

    After reviewing clean coal technologies currently under study in the United States, Australia, and Japan, under the current climate of global warming concerns, one concludes that some of these technologies might well be commercialised soon, especially if some kind of 'emission trading' regime is encouraged after the 1992 United Nations Conference on Environmental and Development (UNCED, Rio de Janeiro, Brazil, June 1992). Some alternative financing possibilities under various emission trading regimes are studied for a 'sample' technology to illustrate the issues involved in clean-coal technology penetration. It is concluded that a financial 'carbon saving credit' alone might prove sufficient to stimulate such penetration. (author)

  5. Federal NOx Budget Trading Program and CAIR NOx and SO2 Trading Programs (40 CFR Part 97)

    Science.gov (United States)

    This part establishes general provisions and the applicability, permitting, allowance, excess emissions, monitoring, and opt-in provisions for the federal NOx Budget Trading Program as a means of mitigating interstate transport of ozone and nitrogen oxides

  6. Regional allocation of CO2 emissions allowance over provinces in China by 2020

    International Nuclear Information System (INIS)

    Wang, Ke; Zhang, Xian; Wei, Yi-Ming; Yu, Shiwei

    2013-01-01

    The mitigation efforts of China are increasingly important for meeting global climate target since the rapid economic growth of China has led to an increasing share in the world's total CO 2 emissions. This paper sets out to explore the approach for realizing China's national mitigation targets submitted to the UNFCCC as part of the Copenhagen Accord; that is, to reduce the intensity of CO 2 emissions per unit of GDP by 40–45% by 2020, as well as reducing the energy intensity and increasing the share of non-fossil fuel consumption, through regional allocation of emission allowance over China's provinces. Since the realization of China's mitigation target essentially represents a total amount emission allowance allocation problem, an improved zero sum gains data envelopment analysis optimization model, which could deal with the constant total amount resources allocation, is proposed in this study. By utilizing this model and based on several scenarios of China's economic growth, CO 2 emissions, and energy consumption, a new efficient emission allowance allocation scheme on provincial level for China by 2020 is proposed. The allocation results indicate that different provinces have to shoulder different mitigation burdens in terms of emission intensity reduction, energy intensity reduction, and share of non-fossil fuels increase. - Highlights: ► We explore the approach to realize national CO 2 emissions reduction target of China by 2020. ► The CO 2 emissions allowance is allocated over China's 30 administrative regions. ► Several scenarios of China's regional economy, emission, energy consumption are given. ► The zero sum gains data envelopment analysis model is applied in emission allowance allocation. ► An efficient emission allowance allocation scheme on provincial level is proposed

  7. Greenhouse gas trading

    Energy Technology Data Exchange (ETDEWEB)

    Drazilov, P. [Natsource-Tullett Emissions Brokerage, Toronto, ON (Canada)

    2001-07-01

    Natsource-Tullett Emissions Brokerage is a market leader in natural gas, electricity, coal, and weather, emissions with a total of more than $2 billion by volume in emissions transactions in the United States, Canada, Australia, Japan, and Europe. This power point presentation addressed issues dealing with global warming, the Kyoto Protocol, and explained where we are in terms of reaching commitments for the first compliance period between 2008-2012. The paper focused on international emissions trading (IET), joint implementation (JI) and the clean development mechanism (CDM) and explained how greenhouse gases are traded. Emissions trading refers to the trade of carbon dioxide, methane, nitrous oxides, perfluoro-carbons, hydrofluorocarbons, and sulphur hexafluorides. The motivational drivers for trading were outlined in terms of liability for buyers and assets for sellers. To date, trading activity is nearly 120 transactions with nearly 70 million tons of carbon dioxide equivalent. tabs., figs.

  8. Carbon dioxide emissions embodied in international trade in Central Europe between 1995 and 2008

    Directory of Open Access Journals (Sweden)

    Vlčková Jana

    2015-12-01

    Full Text Available Climate change and environmental policies are widely discussed, but much less is known about emissions embodied in goods traded internationally, and the distinction between emission producers and consumers. The carbon dioxide emissions embodied in international trade in Central European countries are subject to examination in this paper. As a result of industrial restructuring and environmental legislation, air pollution has improved significantly in Central European countries since the 1989 transition. On the other hand, economic growth has been accompanied by a rise in consumerism. Despite the increasing role of exports, the Visegrad group countries have become net importers of carbon dioxide emissions between 1995 and 2008. This seems to be the ‘standard trajectory’ of a country’s transition toward a more developed and consumption-oriented economy. The global patterns of carbon dioxide emissions embodied in manufacturing exports are also mapped, using network analysis and constructing ‘product space’. The analysis confirms that industrial re-structuring played an important role in lowering the production of carbon dioxide emissions in the Visegrad countries.

  9. CO2 price dynamics. A follow-up analysis of the implications of EU emissions trading for the price of electricity

    International Nuclear Information System (INIS)

    Sijm, J.P.M.; Ten Donkelaar, M.; Hers, J.S.; Scheepers, M.J.J.; Chen, Y.

    2006-03-01

    The present study discusses the results of some follow-up analyses on the relationship between EU emissions trading and power prices, notably the implications of free allocations of CO2 emissions allowances for the price of electricity in Germany and the Netherlands. These analyses include: An update of the empirical and statistical analyses of the price trends and pass through rates of CO2 costs in the power sector of Germany and the Netherlands; An analysis by means of the model COMPETES of the potential effects of CO2 emissions trading on the wholesale market shares of the major power producers in the Netherlands; An analysis of two policy options to cope with certain adverse effects of passing through the opportunity costs of freely allocated CO2 emission allowances, i.e. less grandfathering to the major power producers - in favour of major electricity users - by either a more stringent allocation to the power generators or auctioning part of the allowances to these generators. A major finding of the present study is that dark/spark spreads of power production in Germany and the Netherlands have improved substantially in 2005, especially during the period August-December. Whereas valid CO2 pass through rates of 40 to 70 percent have been estimated for the first period of 2005 (January- July), estimates for the year 2005 as a whole - and particularly for the latter period August-December - seem to be less or not valid since other factors, such as market power or scarcity, seem also (or even more) responsible for the improvement of dark/spark spreads in the latter period of 2005 (while data are lacking to abstract for these other factors). Regarding the policy options to address adverse effects of CO2 cost pass through, the report concludes that a small degree of less grandfathering to the power producers (i.e. 10-20 percent of the allowances needed) will reduce their windfall profits accordingly, without a major, decisive impact on the operational and investment

  10. Assessment of China's virtual air pollution transport embodied in trade by a consumption-based emission inventory

    Science.gov (United States)

    Zhao, H. Y.; Zhang, Q.; Davis, S. J.; Guan, D.; Liu, Z.; Huo, H.; Lin, J. T.; Liu, W. D.; He, K. B.

    2014-10-01

    High anthropogenic emissions from China have resulted in serious air pollution, and it has attracted considerable academic and public concern. The physical transport of air pollutants in the atmosphere has been extensively investigated, however, understanding the mechanisms how the pollutants were transferred through economic and trade activities remains challenge. In this work, we assessed China's virtual air pollutant transport embodied in trade, by using consumption-based accounting approach. We first constructed a consumption-based emission inventory for China's four key air pollutants (primary PM2.5, sulfur dioxide (SO2), nitrogen oxides (NOx) and non-methane volatile organic compounds (NMVOC)) in 2007, based on the bottom-up sectoral emission inventory concerning their production activities - a production-based inventory. We used a multiregional input-output (MRIO) model to integrate the sectoral production-based emissions and the associated economic and trade activities, and finally obtained consumption-based inventory. Unlike the production-based inventory, the consumption-based inventory tracked emissions throughout the supply chain related to the consumption of goods and services and hereby identified the emission flows followed the supply chains. From consumption-based perspective, emissions were significantly redistributed among provinces due to interprovincial trade. Large amount of emissions were embodied in the net imports of east regions from northern and central regions; these were determined by differences in the regional economic status and environmental policies. We also calculated the emissions embodied in exported and imported goods and services. It is found that 15-23% of China's pollutant emissions were related to exports for foreign consumption; that proportion was much higher for central and export-oriented coastal regions. It is suggested that measures should be introduced to reduce air pollution by integrating cross-regional consumers

  11. Greenhouse gas emissions trading and complementary policies. Developing a smart mix for ambitious climate policies

    Energy Technology Data Exchange (ETDEWEB)

    Matthes, Felix C.

    2010-06-15

    A debate has - most notably as a result of the introduction of fixed caps within the framework of emissions trading - been raised about the need for using additional instruments of climate and energy policy. A common line of argument is that the targets set within the emissions trading scheme are going to be met with a high degree of certainty, and flexibility among the regulated stakeholders will lead to market-based discovery processes. Additional instruments would only generate additional costs and would therefore have to be rejected. However, closer analysis of these fundamental arguments shows that they are constructed on a very high level of abstraction and sometimes rely on strongly simplifying or idealising assumptions. Their theoretical assumptions are, at least in part, very questionable and do not correspond to conditions in the real world for climate and energy policy. At the same time the debate about policy instruments cannot be held autonomously of the specific context of the problem at hand. In this sense the very extensive (complete) and above all effective decarbonisation of the economies of industrialised countries in a comparatively short time frame is the key basic condition for the analysis, assessment and design of the climate policy mix. Essentially, the question is what the best instruments are for purging the whole economic system almost entirely of CO{sub 2} emissions within a period of only forty years. The introduction of emissions trading schemes for greenhouse gases in an increasing number of OECD countries undoubtedly constitutes an important landmark of climate policy. They: - provide a high degree of certainty in terms of meeting targets; - create, on the basis of a standardised price signal, a clearing mechanism for the broad spectrum of emission reduction options close to the market, at least in the short to medium term; and - represent, by means of linking, an interesting option in terms of the globalisation of climate policy

  12. Emission trading in Ontario : Understanding and managing compliance risk

    Energy Technology Data Exchange (ETDEWEB)

    White, A. [Mirant Canada Energy Marketing ltd., Toronto, ON (Canada)

    2002-07-01

    Mirant is one of the top five American energy marketer of power and gas, with more than 20,700 megawatts (MW) of electric generating capacity worldwide, of which 13,600 is in North America. The author presented a chart displaying nitrogen oxide emissions in Ontario, followed by another chart with the emissions of sulphur dioxide also in Ontario. The emission targets for the power sector were reviewed, as were the nitrogen oxide emission limits from 2002 to 2010. The major features of the Ontario legislation were discussed, covering allowance allocation, unlimited banking and limited provisions for credit. Ontario fossil capacity was reviewed, followed by emission allowance allocation. The issues and risks for Independent Power Producers were discussed. They included the emission rate compared to that of the competition, how much the facility was run last year and how much you expect to run it next year, the possibility of buying allowances or credits and at what cost. Looking to the future, the government of Ontario has announced bold actions on industry emissions. The initiatives include consultations, emission limits for both nitrogen oxide and sulphur dioxide from all major industrial emitters, and tighter province-wide targets and timelines for nitrogen oxide and sulphur dioxide. refs., tabs., figs.

  13. Emission trading in Ontario : Understanding and managing compliance risk

    International Nuclear Information System (INIS)

    White, A.

    2002-01-01

    Mirant is one of the top five American energy marketer of power and gas, with more than 20,700 megawatts (MW) of electric generating capacity worldwide, of which 13,600 is in North America. The author presented a chart displaying nitrogen oxide emissions in Ontario, followed by another chart with the emissions of sulphur dioxide also in Ontario. The emission targets for the power sector were reviewed, as were the nitrogen oxide emission limits from 2002 to 2010. The major features of the Ontario legislation were discussed, covering allowance allocation, unlimited banking and limited provisions for credit. Ontario fossil capacity was reviewed, followed by emission allowance allocation. The issues and risks for Independent Power Producers were discussed. They included the emission rate compared to that of the competition, how much the facility was run last year and how much you expect to run it next year, the possibility of buying allowances or credits and at what cost. Looking to the future, the government of Ontario has announced bold actions on industry emissions. The initiatives include consultations, emission limits for both nitrogen oxide and sulphur dioxide from all major industrial emitters, and tighter province-wide targets and timelines for nitrogen oxide and sulphur dioxide. refs., tabs., figs

  14. International trade and CO{sub 2} emissions; International handel og CO{sub 2}-udledning

    Energy Technology Data Exchange (ETDEWEB)

    Munksgaard, J.; Pade, L.L. [AKF, Copenhagen (Denmark); Lenzen, M. [Univ. of Sydney (Australia)

    2005-04-01

    International trade has an impact on national CO{sub 2} emissions and consequently on the ability to fulfil national CO{sub 2} reduction targets. Through goods and services traded in a globally interdependent world, the consumption in each country is linked to greenhouse gas emissions in other countries. It has been argued that in order to achieve equitable reduction targets, international trade has to be taken into account when assessing nations' responsibility for abating climate change. Especially for open economies such as Denmark, greenhouse gases embodied in international traded commodities can have a considerable influence on the national greenhouse gas responsibility. Founded in the concepts of 'producer CO{sub 2} responsibility', 'consumer CO{sub 2} responsibility' and 'CO{sub 2} trade balance' the aim of the present study has been to develop the single-region input-output model as used in a previous study into a multi-region input-output model in order to get a more realistic description of the production technologies actually used in the countries of imports. The study concludes that trade is the key to define CO{sub 2} responsibility on macroeconomics level and that imports should be founded in a multi-region model approach. The study also points at the need to consider the impact from foreign trade when negotiating national reduction targets and base line scenarios within the context of international climate agreements. (BA)

  15. A Case Study of the Accounting Models for the Participants in an Emissions Trading Scheme

    Directory of Open Access Journals (Sweden)

    Marius Deac

    2013-10-01

    Full Text Available As emissions trading schemes are becoming more popular across the world, accounting has to keep up with these new economic developments. The absence of guidance regarding the accounting for greenhouse gases (GHGs emissions generated by the withdrawal of IFRIC 3- Emission Rights - is the main reason why there is a diversity of accounting practices. This diversity of accounting methods makes the financial statements of companies that are taking part in emissions trading schemes like EU ETS, difficult to compare. The present paper uses a case study that assumes the existence of three entities that have chosen three different accounting methods: the IFRIC 3 cost model, the IFRIC 3 revaluation model and the “off balance sheet” approach. This illustrates how the choice of an accounting method regarding GHGs emissions influences their interim and annual reports through the chances in the companies’ balance sheet and financial results.

  16. A modified GHG intensity indicator: Toward a sustainable global economy based on a carbon border tax and emissions trading

    International Nuclear Information System (INIS)

    Farrahi Moghaddam, Reza; Farrahi Moghaddam, Fereydoun; Cheriet, Mohamed

    2013-01-01

    It will be difficult to gain the agreement of all the actors on any proposal for climate change management, if universality and fairness are not considered. In this work, a universal measure of emissions to be applied at the international level is proposed, based on a modification of the Greenhouse Gas Intensity (GHG-INT) measure. It is hoped that the generality and low administrative cost of this measure, which we call the Modified Greenhouse Gas Intensity measure (MGHG-INT), will eliminate any need to classify nations. The core of the MGHG-INT is what we call the IHDI-adjusted Gross Domestic Product (IDHIGDP), based on the Inequality-adjusted Human Development Index (IHDI). The IDHIGDP makes it possible to propose universal measures, such as MGHG-INT. We also propose a carbon border tax applicable at national borders, based on MGHG-INT and IDHIGDP. This carbon tax is supported by a proposed global Emissions Trading System (ETS). The proposed carbon tax is analyzed in a short-term scenario, where it is shown that it can result in a significant reduction in global emissions while keeping the economy growing at a positive rate. In addition to annual GHG emissions, cumulative GHG emissions over two decades are considered with almost the same results. - Highlights: ► An IHDI-adjusted GDP (IHDIGDP) is introduced to universally account the activities of nations. ► A modified GHG emission intensity (MGHG-INT) is introduced based on the IHDIGDP. ► Based on green and red scenarios, admissible emissions and RED percentage are introduced. ► The RED percentage is used to define a border carbon tax (BCT) and emission trading system. ► The MGHG-INT can provide a universal control on emissions while allowing high economical growth

  17. International trade in oil, gas and carbon emission rights: An intertemporal general equilibrium model

    International Nuclear Information System (INIS)

    Manne, A.S.; Rutherford, T.F.

    1994-01-01

    This paper employs a five-region intertemporal model to examine three issues related to carbon emission restrictions. First, we investigate the possible impact of such limits upon future oil prices. We show that carbon limits are likely to differ in their near- and long-term impact. Second, we analyze the problem of open-quotes leakageclose quotes which could arise if the OECD countries were to adopt unilateral limits upon carbon emissions. Third, we quantify some of the gains from trade in carbon emission rights. Each of these issues have been studied before, but to our knowledge this is the first study based on a multi-regional, forward-looking model. We show that sequential joint maximization can be an effective way to compute equilibria for intertemporal general equilibrium models of international trade. 18 refs., 10 figs

  18. Report for fiscal 2000 investigations on effects imposed by introducing emission trading system; 2000 nendo haishutsuryo torihiki system donyu ni yoru eikyo ni kansuru chosa hokokusho

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2001-03-01

    With regard to effectiveness of the emission trading targeted to reduce the greenhouse effect gas emission, evaluation has been given from the three viewpoints: economies, environment, and household economy. In the research, simulations were implemented by using the GEC calculation model modified for introduction of domestic emission trading, and utilization of international emission trading. In evaluating the effects on industries and foreign trades, notice was given on the large energy consuming industries to discuss the effects of introducing the emission trading on the quantity of production and export. Regarding the effects on environment, calculations and discussions were given on greenhouse effect gas leakage rates to assess the greenhouse effect gas emission reducing effects from the domestic and international viewpoints. As a result of the discussions, it was found that the economies, environment and household economy are all benefited in regard with the domestic emission trading. Utilization of the international emission trading was also found to have sufficient positive benefit exist for the economies and household economy. (NEDO)

  19. Saving emissions trading from irrelevance

    International Nuclear Information System (INIS)

    Tindale, Stephen

    2013-01-01

    Uncontrolled climate change is the greatest risk that humanity faces. The main burden will fall on developing countries, particularly in sub-Saharan Africa. But Europe and its residents will also be damaged in many ways, including extreme weather, heat waves, and the spread of tropical diseases. Climate change is a quintessentially global challenge. If pollution shifts from one part of the world to another - from Europe to China, for example - the global climate is no better off. The main EU climate policy, the Emissions Trading System, now stipulates such a low carbon price that it has become essentially irrelevant. The European Commission should propose a Europe-wide carbon price floor of euro 30 per tonne, high enough to influence investment decisions and encourage energy efficiency and low-carbon energy supply. The Commission should also propose border tax adjustments, with the revenue returned to the country of origin

  20. Spatial-Temporal Variations of Embodied Carbon Emission in Global Trade Flows: 41 Economies and 35 Sectors

    OpenAIRE

    Jing Tian; Hua Liao; Ce Wang

    2014-01-01

    The spatial-temporal variations of embodied carbon emissions in international trade at global scope are still unclear. This paper studies the variations of outflows and inflows of embodied carbon emissions at 35-disaggregated sectors level of 41 countries and regions, and an integrated world input-output model is employed. It also examines what would happen if there were not international trade flows in China, USA and Finland, the representatives of three different levels of the global balanc...

  1. SCRUB versus trade: Enemies or allies?

    International Nuclear Information System (INIS)

    Platt, J.B.

    1992-01-01

    Under the 1990 Clean Air Act Amendments (CAAA), scrubbing and emission allowance trading will play complementary roles. This paper reviews Phase I announced strategies and presents projections of technology controls, coal switching and industry-wide SO 2 removal costs under different assumptions about trading. The principal uncertainties characterizing today's planning environment are discussed -- ranging from changing expectations for fuel costs to swings in allowance prices and questions about regulation and new operating procedures. Economic forecasting is difficult. A clearer picture of Phase 2 strategies is emerging from EPRI's integrated analysis of fuel, technology and allowance markets -- based on collaboration between A. Van Horn and K. White (management consultants) and T. Hewson (Energy Ventures Analysis). About half the SO 2 reductions required in Phase 2 are likely to come from technology controls and half from coal switching. With trading, the highest cost open-quotes scrubsclose quotes and open-quotes switchesclose quotes can be avoided, more upgrading of low-cost scrubbing is expected, and the role of switching grows to a small extent. Additional benefits from trading, averaging and banking allowances are: better sequencing of technology controls, less stringent specs for equipment, and added flexibility/risk-sharing opportunities in contract arrangements

  2. Internalizing carbon costs in electricity markets: Using certificates in a load-based emissions trading scheme

    International Nuclear Information System (INIS)

    Gillenwater, Michael; Breidenich, Clare

    2009-01-01

    Several western states have considered developing a regulatory approach to reduce greenhouse gas (GHG) emissions from the electric power industry, referred to as a load-based (LB) cap-and-trade scheme. A LB approach differs from the traditional source-based (SB) cap-and-trade approach in that the emission reduction obligation is placed upon Load Serving Entities (LSEs), rather than electric generators. The LB approach can potentially reduce the problem of emissions leakage, relative to a SB system. For any of these proposed LB schemes to be effective, they must be compatible with modern, and increasingly competitive, wholesale electricity markets. LSE's are unlikely to know the emissions associated with their power purchases. Therefore, a key challenge for a LB scheme is how to assign emissions to each LSE. This paper discusses the problems with one model for assigning emissions under a LB scheme and proposes an alternative, using unbundled Generation Emission Attribute Certificates. By providing a mechanism to internalize an emissions price signal at the generator dispatch level, the tradable certificate model addresses both these problems and provides incentives identical to a SB scheme

  3. Developing Benchmarking Criteria for CO2 Emissions

    Energy Technology Data Exchange (ETDEWEB)

    Neelis, M.; Worrell, E.; Mueller, N.; Angelini, T. [Ecofys, Utrecht (Netherlands); Cremer, C.; Schleich, J.; Eichhammer, W. [The Fraunhofer Institute for Systems and Innovation research, Karlsruhe (Germany)

    2009-02-15

    A European Union (EU) wide greenhouse gas (GHG) allowance trading scheme (EU ETS) was implemented in the EU in 2005. In the first two trading periods of the scheme (running up to 2012), free allocation based on historical emissions was the main methodology for allocation of allowances to existing installations. For the third trading period (2013 - 2020), the European Commission proposed in January 2008 a more important role of auctioning of allowances rather then free allocation. (Transitional) free allocation of allowances to industrial sectors will be determined via harmonized allocation rules, where feasible based on benchmarking. In general terms, a benchmark based method allocates allowances based on a certain amount of emissions per unit of productive output (i.e. the benchmark). This study aims to derive criteria for an allocation methodology for the EU Emission Trading Scheme based on benchmarking for the period 2013 - 2020. To test the feasibility of the criteria, we apply them to four example product groups: iron and steel, pulp and paper, lime and glass. The basis for this study is the Commission proposal for a revised ETS directive put forward on 23 January 2008 and does not take into account any changes to this proposal in the co-decision procedure that resulted in the adoption of the Energy and Climate change package in December 2008.

  4. Leaving an emissions trading scheme : Implications for the United Kingdom and the European Union

    NARCIS (Netherlands)

    Tol, Richard S.J.

    2018-01-01

    The United Kingdom (UK) may opt to leave the European Union (EU) emissions trading system (ETS) for greenhouse gases. This policy brief examines the implications. The UK is a large importer of emission permits. Thus, meeting its climate policy targets would be much more difficult without the EU ETS,

  5. A two-period model of emission abatement and allowance banking under uncertainty

    International Nuclear Information System (INIS)

    Hanson, D.A.

    1991-01-01

    This paper deals with the effects of uncertainty and risk aversion on market outcomes for SO 2 emission allowance prices and on electric utility compliance choices. The 1990 Clean Air Act Amendments (CAAA) provide about twice as many SO 2 allowances to be issued per year in Phase I (1995--1999) than in Phase II. Also, considering the scrubber incentives in Phase I, there is likely to be substantial emission banking for use in Phase II. Allowance prices may increase over time at a rate less than the return on alternative investments with allowances being banked only by risk averse electric utilities. Speculators are likely to be willing to set allowances in forward markets, which will lower current market prices of allowances relative to a situation with only risk averse utilities in the market. The Argonne Utility Simulation Model (ARGUS2) is being revised to incorporate the provisions of the CAAA acid rain title and to simulate SO 2 allowance prices, compliance choices, capacity expansion, system dispatch, fuel use, and emissions using a unit level data base and alternative scenario assumptions

  6. The impacts of EU CO2 emissions trading on electricity markets and electricity consumers in Finland

    International Nuclear Information System (INIS)

    Kara, M.; Syri, S.; Lehtilae, A.; Helynen, S.; Kekkonen, V.; Ruska, M.; Forsstroem, J.

    2008-01-01

    In this paper, the likely impacts of the EU emission trading system on the Nordic electricity market and on the position of various market actors are assessed. In its first phase, the EU CO 2 emission trading system includes power plants with thermal capacity greater than 20 MW, metals industry, pulp and paper industry, mineral industry and oil refineries. This paper describes the assessment done for the Finnish Minister of Trade and Industry, analysing the likely impacts on power plant operators, on energy-intensive industries, on other industries and on other consumer groups. The impacts of emissions trading were studied with the VTT electricity market model and with the TIMES energy system model. The annual average electricity price was found to rise 0.74 EUR MW h -1 for every 1 Euro tonne CO 2 -1 in the Nordic area. Large windfall profits were estimated to incur to electricity producers in the Nordic electricity market. In Finland, metals industry and private consumers were estimated to be most affected by the electricity market price increases. Expanded nuclear power generation could limit the increases in the prices of electricity to one-third compared to those in the base case

  7. Evaluation of the European Commission's proposal to set aside emission allowances. Effects on the EU carbon price and Dutch ETS companies

    Energy Technology Data Exchange (ETDEWEB)

    Verdonk, M.; Vollebergh, H.

    2012-11-15

    A set-aside of CO2 allowances would reduce the current oversupply in the European Emissions Trading System (ETS). This would result in temporary higher CO2 prices. However, a literature study has shown that the impact of the European Commission's proposal on CO2 prices is likely to be limited, because the total amount of allowances up to 2020 would remain unchanged. However, the proposal sends out a signal to investors that the functioning of the ETS is a priority for politicians, and increases the likelihood of further reforms. Any negative impact of back loading on ETS companies in the Netherlands is likely to be limited.

  8. Can preapproval jump-start the allowance market

    Energy Technology Data Exchange (ETDEWEB)

    Dudek, D.J.; Goffman, J.

    1992-06-01

    With compliance deadlines approaching in three years, utility, environmental and financial planners and their regulators are in the process of grappling with the requirements imposed, and opportunities created, by the acid rain program established under Title 4 of the Clean Air Act amendments of 1990. The novel element of the program - emissions or allowance trading through a nationwide allowance market - presents great challenges for utilities and their regulators. Perhaps the foremost challenge is establishing the allowance market. If state utility commissions subject utilities' compliance strategies to traditional after-the-fact prudence reviews, as tradition would impel them to do, the attendant regulatory risks are likely to push utilities toward more conservative compliance schemes that underuse allowance trading (as the exchange at the head of this article demonstrates). If that happens, the market will fail to develop, and its full potential for environmental benefit at least cost will go unrealized. This, in turn, is likely to strengthen the case for non-market regulatory mechanisms - a vicious circle. In this paper, the authors suggest a way out of this.

  9. Can preapproval jump-start the allowance market?

    International Nuclear Information System (INIS)

    Dudek, D.J.; Goffman, J.

    1992-01-01

    With compliance deadlines approaching in three years, utility, environmental and financial planners and their regulators are in the process of grappling with the requirements imposed, and opportunities created, by the acid rain program established under Title 4 of the Clean Air Act amendments of 1990. The novel element of the program - emissions or allowance trading through a nationwide allowance market - presents great challenges for utilities and their regulators. Perhaps the foremost challenge is establishing the allowance market. If state utility commissions subject utilities' compliance strategies to traditional after-the-fact prudence reviews, as tradition would impel them to do, the attendant regulatory risks are likely to push utilities toward more conservative compliance schemes that underuse allowance trading (as the exchange at the head of this article demonstrates). If that happens, the market will fail to develop, and its full potential for environmental benefit at least cost will go unrealized. This, in turn, is likely to strengthen the case for non-market regulatory mechanisms - a vicious circle. In this paper, the authors suggest a way out of this

  10. The Canada-U.S. trade, energy, and emissions relationship

    International Nuclear Information System (INIS)

    McLaughlin, David

    2010-01-01

    A significant level of trade integration exists between Canada and the United States. For this reason, climate and energy policies in one country have economic and environmental impacts in the other. The two nations have embarked on a clean energy dialogue for the development of a clean energy strategy for Canada and this document aims at providing information and context. This paper showed that the trade relationship with the United States is important to maintaining Canada's level of prosperity. Although climate and energy policies in one country have impacts on the other, significant differences exist between their respective energy sources and emissions and a common policy would affect Canada's competitiveness. This paper showed that Canada and the United States need to discuss their clean energy and climate policies with each other but that it is not possible to implement a common policy.

  11. The european union emission trading scheme and energy markets: economic and financial analysis

    International Nuclear Information System (INIS)

    Bertrand, Vincent

    2012-01-01

    This thesis investigates relationships between the European Union Emission Trading Scheme (EU ETS) and energy markets. A special focus is given to fuel switching, the main short term abatement measure within the EU ETS. This consists in substituting Combined Cycle Gas Turbines (CCGTs) for hard-coal plants in off-peak power generation. Thereby coal plants run for shorter periods, which allows power producers to reduce their CO 2 emissions. In Chapter 1, we outline different approaches explaining relationships between carbon and energy markets. We also review the literature relating to these issues. Next, we further describe the fuel switching process and, in particular, we analyze the influence of energy and environmental efficiency of thermal power plants (coal and gas) on fuel switching. In Chapter 2, we provide a theoretical analysis that shows how differences in the efficiency of CCGTs can rule interactions between gas and carbon prices. The main result shows that the allowance price becomes more sensitive to the gas price when the level of CO 2 emissions increases. In Chapter 3, we examine interactions between carbon, coal, gas and electricity prices in an empirical study. Among the main results, we find that there is a significant link between carbon and gas prices in the long-run equilibrium. In Chapter 4, we analyze the cross-market price discovery process between gas and CO 2 markets. We identified in previous chapters that there is a robust significant link between gas and CO 2 markets. They are linked commodities, and their prices are affected by the same information. In an empirical analysis, we find that the carbon market is the leader in cross-market price discovery process. (author)

  12. What are the opportunities related to the trading of emission reductions in the electricity market?

    International Nuclear Information System (INIS)

    Lemieux, M.

    2003-01-01

    Gaz Metropolitain distributes approximately 97 per cent of the natural gas used in Quebec. It operates an 8300 kilometre (km) pipeline network and has 150,000 customers. Revenues in 2002 were 1.6 billion. Since 1990, Gaz Metropolitain has reduced its greenhouse gas (GHG) emissions by 30 per cent. After a brief look at the sources of energy in Quebec and their associated GHG emissions, the author discussed the viability of a closed emission trading system with only a limited number of permits. The system could be opened up through the creation of credits in excluded sectors. Under the Kyoto Protocol, countries are allocated emitting permits in an open system since the credits are included in the Protocol. In Canada, the federal government has announced that a domestic emission trading system will be implemented for large emitters. The thermal production sector will be covered by a system consisting of an exchange of rights. Electricity produced from renewable energy sources would be excluded from the system, and it is yet to be decided whether credits could be generated. The creation of credits under the Canadian plan was reviewed. The projects accepted under the Greenhouse Gas Emission Reduction Trading Pilot (GERT) were examined and the development of the project was described. Some of the projects under GERT include a new dam in Newfoundland, a wind power project in Alberta, and a biomass cogeneration project in British Columbia to name but a few. It was noted that quantifying emissions in the case of indirect reductions is complex but feasible. 3 refs., tabs., figs

  13. International trade and air pollution: estimating the economic costs of air emissions from waterborne commerce vessels in the United States.

    Science.gov (United States)

    Gallagher, Kevin P

    2005-10-01

    Although there is a burgeoning literature on the effects of international trade on the environment, relatively little work has been done on where trade most directly effects the environment: the transportation sector. This article shows how international trade is affecting air pollution emissions in the United States' shipping sector. Recent work has shown that cargo ships have been long overlooked regarding their contribution to air pollution. Indeed, ship emissions have recently been deemed "the last unregulated source of traditional air pollutants". Air pollution from ships has a number of significant local, national, and global environmental effects. Building on past studies, we examine the economic costs of this increasing and unregulated form of environmental damage. We find that total emissions from ships are largely increasing due to the increase in foreign commerce (or international trade). The economic costs of SO2 pollution range from dollars 697 million to dollars 3.9 billion during the period examined, or dollars 77 to dollars 435 million on an annual basis. The bulk of the cost is from foreign commerce, where the annual costs average to dollars 42 to dollars 241 million. For NOx emissions the costs are dollars 3.7 billion over the entire period or dollars 412 million per year. Because foreign trade is driving the growth in US shipping, we also estimate the effect of the Uruguay Round on emissions. Separating out the effects of global trade agreements reveals that the trade agreement-led emissions amounted to dollars 96 to dollars 542 million for SO2 between 1993 and 2001, or dollars 10 to dollars 60 million per year. For NOx they were dollars 745 million for the whole period or dollars 82 million per year. Without adequate policy responses, we predict that these trends and costs will continue into the future.

  14. EU Emissions Trading Scheme and Investments in the power sector

    Energy Technology Data Exchange (ETDEWEB)

    Sapienza, M.D.; Stefanoni, S.

    2007-07-01

    How environmental regulation affects electricity players' investment decisions? Should policy makers look beyond for alternative mechanisms - such as energy efficiency, capture and storage of carbon dioxide, and incentives for renewables - to fulfill the environmental objectives set by Kyoto Protocol? This paper suggests - through a Real Option approach - how the efficacy of the EU Emission Trading Scheme on technological innovation, emissions reduction and energy price dynamics, is strongly affected by the 'hysteresis' emerging from the capital budgeting process of main utilities. As a matter of fact, long-term substitutions between coal-fired units and Combined Cycle Gas Turbine plants production only take place under quite restrictive conditions. (auth)

  15. Conditional transfer of emission rights. Not a good idea

    International Nuclear Information System (INIS)

    Van Engelen, Th.C.J.A.

    2004-01-01

    The Dutch government embraces the idea that trading of emission allowances is a useful way of reducing the emission of harmful gasses. In the current plans to amend the Environmental Management Act, however, the legislator has chosen for a system where allowances may only be transferred in accordance with strict conditions. These conditions do not provide a legal framework for an efficient emission allowances trading market. As a result, Dutch industry will potentially be placed in an unfavourable position. The legislator, it is suggested, should opt for fully transferable allowances. It is crucial that an efficient international market for trading in allowances is established. This means that it should be possible to trade these allowances easily, without excessive legal restrictions. The aim of the legislator is to prevent extreme situations in this market. While its concerns are valid, however, the legislator has missed the mark by choosing a system whereby transfer of allowances is subject to excessive conditions. The legal consequence of not fulfilling one or more of the conditions during the sale is that the allowance will not be legally transferred, and the seller will remain the proprietor of the allowance, without either the seller or the buyer being aware of the situation. It is clear that this would be an unworkable situation as it would not be possible from a practical angle to simply and quickly check previous transactions. Overall, this would result in high transactions costs, which in turn would be a barrier to an efficient market. In summary, an efficient market in emission allowances seems to be an illusion if the transfer of allowances are subject to such conditions as are presently envisaged by the law. It is suggested that the legislator can reach its goals by dropping the conditions for transfers and by supervising the transactions through administrative and criminal procedures instead. This will not affect the owners-hip of emission allowances

  16. Volatile organic matter emission trade. Pitfalls and chances. Final report

    International Nuclear Information System (INIS)

    Wind, M.H.A.

    2001-01-01

    The aim of this report is to provide policy makers non-specialist information on a system for tradeable emission rights (VER, abbreviated in Dutch) for volatile matter in the Netherlands in order to be able to choose the best trading system. The information is based on an environmental-economical theory of VER and the results of practical experiments, mainly from the USA. 18 refs [nl

  17. For sale: Sulfur emissions

    International Nuclear Information System (INIS)

    Heiderscheit, J.

    1992-01-01

    The allowance trading market has started a slow march to maturity. Competitive developers should understand the risks and opportunities now presented. The marketplace for sulfur dioxide (SO 2 ) emissions allowances - the centerpiece of Title 4's acid rain reduction program - remains enigmatic 19 months after the Clean Air Act amendments of 1990 were passed. Yet it is increasingly clear that the emission allowance market will likely confound the gloom and doom of its doubters. The recently-announced $10 million dollar Wisconsin Power and Light allowance sales to Duquesne Light and the Tennessee Valley Authority are among the latest indications of momentum toward a stabilizing market. This trend puts additional pressure on independent developers to finalize their allowance strategies. Developers who understand what the allowance trading program is and what it is not, know the key players, and grasp the unresolved regulatory issues will have a new competitive advantage. The topics addressed in this article include the allowance marketplace, marketplace characteristics, the regulatory front, forward-looking strategies, and increasing marketplace activity

  18. On the efficiency gains of emissions trading when climate deals are non-cooperative

    Energy Technology Data Exchange (ETDEWEB)

    Godal, Odd; Holtsmark, Bjart

    2011-07-15

    This paper studies, in a numerical environment, climate treaties with emissions trading when national quotas result from strategic individual choice. We find that the larger the number of parties to the deal, the smaller are the emissions reductions and the lower the welfare. If insisting on stability with respect to participation, climate treaties involve few parties and yield practically no emissions reductions. While these results contrast with some optimistic studies, our numerical example conforms established results if modelling the problem in the more traditional sense. (Author)

  19. Environmental impacts of food trade via resource use and greenhouse gas emissions

    International Nuclear Information System (INIS)

    Dalin, Carole; Rodríguez-Iturbe, Ignacio

    2016-01-01

    Agriculture will need to significantly intensify in the next decades to continue providing essential nutritive food to a growing global population. However, it can have harmful environmental impacts, due to the use of natural and synthetic resources and the emission of greenhouse gases, which alter the water, carbon and nitrogen cycles, and threaten the fertility, health and biodiversity of landscapes. Because of the spatial heterogeneity of resource productivity, farming practices, climate, and land and water availability, the environmental impact of producing food is highly dependent on its origin. For this reason, food trade can either increase or reduce the overall environmental impacts of agriculture, depending on whether or not the impact is greater in the exporting region. Here, we review current scientific understanding of the environmental impacts of food trade, focusing on water and land use, pollution and greenhouse gas emissions. In the case of water, these impacts are mainly beneficial. However, in the cases of pollution and greenhouse gas emissions, this conclusion is not as clear. Overall, there is an urgent need for a more comprehensive, integrated approach to estimate the global impacts of food trade on the environment. Second, research is needed to improve the evaluation of some key aspects of the relative value of each resource depending on the local and regional biophysical and socio–economic context. Finally, to enhance the impact of such evaluations and their applicability in decision-making, scenario analyses and accounting of key issues like deforestation and groundwater exhaustion will be required. (letter)

  20. Environmental impacts of food trade via resource use and greenhouse gas emissions

    Science.gov (United States)

    Dalin, Carole; Rodríguez-Iturbe, Ignacio

    2016-03-01

    Agriculture will need to significantly intensify in the next decades to continue providing essential nutritive food to a growing global population. However, it can have harmful environmental impacts, due to the use of natural and synthetic resources and the emission of greenhouse gases, which alter the water, carbon and nitrogen cycles, and threaten the fertility, health and biodiversity of landscapes. Because of the spatial heterogeneity of resource productivity, farming practices, climate, and land and water availability, the environmental impact of producing food is highly dependent on its origin. For this reason, food trade can either increase or reduce the overall environmental impacts of agriculture, depending on whether or not the impact is greater in the exporting region. Here, we review current scientific understanding of the environmental impacts of food trade, focusing on water and land use, pollution and greenhouse gas emissions. In the case of water, these impacts are mainly beneficial. However, in the cases of pollution and greenhouse gas emissions, this conclusion is not as clear. Overall, there is an urgent need for a more comprehensive, integrated approach to estimate the global impacts of food trade on the environment. Second, research is needed to improve the evaluation of some key aspects of the relative value of each resource depending on the local and regional biophysical and socio-economic context. Finally, to enhance the impact of such evaluations and their applicability in decision-making, scenario analyses and accounting of key issues like deforestation and groundwater exhaustion will be required.

  1. European Union-Emission Trading Scheme: outlook for the chemical industry

    International Nuclear Information System (INIS)

    Coussy, P.; Alberola, E.

    2013-01-01

    From 2013, under the European Union Emissions Trading Scheme (EU-ETS), Europe will cap its emissions of nitrous oxide (N 2 O) and per-fluorocarbons (PFC) from the chemical industry. Besides, 336 chemical industry facilities will be forced to limit their emissions at 45.8 million tons of CO 2 per year from 2013 to 2020. At date August 1, 2012, almost 70% of the carbon credits issued by the clean development mechanism (CDM) were carried out mainly through the destruction of hydro-fluorocarbons (HFC-23) (42%) and N 2 O (22%). The contribution of emission reductions through chemical processes in the Joint Implementation (JI) projects is smaller but still amounted to 32% of all projects. From 1 May 2013 the European Union will refuse CDM and JI credits from emission reductions of HFC-23 and N 2 O. The issues of the introduction of the chemical industry in the EU-ETS in the context of low CO 2 prices and limited validity of CDM and JI chemical projects are high. Therefore, domestic CO 2 emissions reductions from energy consumption of the chemistry sector will take a larger share. (authors)

  2. Energy use, emissions, economic growth and trade: A Granger non-causality evidence for Malaysia

    OpenAIRE

    Ismail, Mohd Adib; Mawar, Murni Yunus

    2012-01-01

    This paper investigates the relationship among energy, emissions and economic growth in Malaysia with the presence of trade activities. We employ Johansen’s (1995) approach to investigate the relationship. Using annual data from 1971 to 2007, the empirical results shows that there are long-run causalities among energy, emission and economic growth, and among energy, emissions, export and capital, while the short-run Granger non-causality test shows that there are unidirectional causalities ru...

  3. Emissions trading and compliance: Regulatory incentives and barriers

    International Nuclear Information System (INIS)

    South, D.W.; Bailey, K.A.; McDermott, K.A.

    1992-01-01

    The Title IV of the Clean Air Act Amendments of 1990 (P.L. 101-549) authorizes the use of transferable emission allowances to achieve reductions in the power generating industry's SO 2 emissions at a minimum possible cost. All electricity generators (greater than 25 MW) are required to hold emissions allowances equal to the amount (tons) of SO 2 emitted during a given year, and meet NO x reduction levels indicated by the Revised New Source Performance Standards (NSPS). This paper will examine the multifaceted goals and problems of states and utilities relative to compliance with Title IV, and in particular as they pertain to the development and functioning of the allowance market together with utility pollution control and power generation technology choice. Section 2 presents possible utility compliance strategies along with possible barriers that utilities may confront regarding the development of a SO 2 allowance market. Section 3 discusses current regulatory barriers and requirements being implemented by state public utility commissions, and Section 4 offers some policy recommendations to achieve the goals of Title IV. Finally, Section 5 presents a summary and conclusions; Appendix A provides programs/mandates developed to data by high sulfur coal states in response to Title IV compliance requirements

  4. Legal Frameworks for Emissions Trading in the European Union

    International Nuclear Information System (INIS)

    Karl Upston-Hooper, K.; Anttonen, K.; Mehling, M.

    2006-01-01

    The Project is based on a comparative and pragmatic review of the legal frameworks for implementing the EU Emission Trading Scheme (ETS) in four EU jurisdictions (Finland, Sweden, United Kingdom and Germany). The project does not seek to examine the rationale of utilizing tradable mechanisms nor assess the costs and benefits of doing so. Its primary focus is to undertake a detailed study of the legal realities involved in implementing the EU ETS, particularly those issues of commercial importance such as taxation and accounting rules. (orig.)

  5. Opportunities and trade-offs of biomass based negative emissions within planetary boundaries

    Science.gov (United States)

    Heck, Vera; Gerten, Dieter; Lucht, Wolfgang

    2017-04-01

    The Paris Agreement requires "a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of the century" (UNFCCC, 2015). Without a full decarbonization of the energy and land use sector until the second half of this century, negative emission technologies (NETs) are required to achieve net zero greenhouse gas emissions. Integrated assessment studies indicate that bioenergy with carbon capture and storage (BECCS), a land based NET, has the potential to contribute substantially to balancing anthropogenic fossil fuel emissions. However, significant negative emission potentials from BECCS require substantial biomass potentials, which can only be achieved by intensively managed (fertilized and irrigated) large-scale biomass plantations. Additional to direct trade-offs of land and water availability, the implementation of large-scale biomass plantations implies major restructuring of the land surface on top of existing land use and would be accompanied by indirect trade-offs such as changes in moisture and energy fluxes. In the context of the planetary boundaries framework as proposed by Rockström et al. (2009), BECCS might contribute to reduce the transgression of the planetary boundary (PB) for climate change, but would most likely steer the Earth system closer to the PB for freshwater use and lead to further transgression of the PBs for land system change, biosphere integrity and biogeochemical flows. This presentation will investigate the opportunities of second generation biomass potentials within the safe operating space for humanity and highlight the multidimensional trade-offs between biomass potentials for BECCS in relation to the PBs. Scenarios of land availability for biomass plantations and land based carbon sequestration were developed with a spatially explicit multi-criterial optimization framework, considering the precautionary need to stay within the safe operating space vis-à-vis the need to

  6. An analysis of SO2 emission compliance under the 1990 Clean Air Act Amendments

    International Nuclear Information System (INIS)

    Hanson, D.A.; Cilek, C.M.; Pandola, G.; Taxon, T.

    1992-01-01

    The effectiveness of SO 2 emission allowance trading under Title 4 of the 1990 Amendments to the Clean Air Act (CAA) is of great interest due to the innovative nature of this market incentive approach. However, it may be a mistake to frame the compliance problem for a utility as a decision to trade or not. Trading of allowances should be the consequence, not the decision. The two meaningful decision variables for a utility are the control approaches chosen for its units and the amount of allowances to hold in its portfolio of assets for the future. The number allowances to be bought or sold (i.e. traded) is determined by the emission reduction and banking decisions. Our preferred approach is to think of the problem in terms of ABC's of the 1990 CAA Amendments: abatement strategy, banking, and cost competitiveness. The implications of the general principles presented in this paper on least cost emission reductions and emissions banking to hedge against risk are being simulated with version 2 of the ARGUS model representing the electric utility sector and regional coal supplies and transportation rates. A rational expectations forecast for allowances prices is being computed. The computed allowance price path has the property that demand for allowances by electric utilities for current use or for banking must equal the supply of allowances issued by the federal government or provided as forward market contracts in private market transactions involving non-utility speculators. From this rational expectations equilibrium forecast, uncertainties are being explored using sensitivity tests. Some of the key issues are the amount of scrubbing and when it is economical to install it, the amount of coal switching and how much low sulfur coal premiums will be bid up; and the amount of emission trading within utilities and among different utilities

  7. Panel estimation for CO2 emissions, energy consumption, economic growth, trade openness and urbanization of newly industrialized countries

    International Nuclear Information System (INIS)

    Sharif Hossain, Md.

    2011-01-01

    This paper empirically examines the dynamic causal relationships between carbon dioxide emissions, energy consumption, economic growth, trade openness and urbanization for the panel of newly industrialized countries (NIC) using the time series data for the period 1971-2007. Using four different panel unit root tests it is found that all panel variables are integrated of order 1. From the Johansen Fisher panel cointegration test it is found that there is a cointegration vector among the variables. The Granger causality test results support that there is no evidence of long-run causal relationship, but there is unidirectional short-run causal relationship from economic growth and trade openness to carbon dioxide emissions, from economic growth to energy consumption, from trade openness to economic growth, from urbanization to economic growth and from trade openness to urbanization. It is found that the long-run elasticity of carbon dioxide emissions with respect to energy consumption (1.2189) is higher than short run elasticity of 0.5984. This indicates that over time higher energy consumption in the newly industrialized countries gives rise to more carbon dioxide emissions as a result our environment will be polluted more. But in respect of economic growth, trade openness and urbanization the environmental quality is found to be normal good in the long-run. - Highlights: → Dynamic causal relationships are conducted for different panel variables of NIC. → Test results support only existence of unidirectional short-run causal relationships. → Environment will be polluted more due to energy consumption in the long-run. → But environmental quality is found to be normally good in respect of other variables. → NIC should use solar energy as the substitute of oil to control CO 2 emissions.

  8. The design and implementation of an international trading scheme for greenhouse gas emissions

    NARCIS (Netherlands)

    Zhang, ZX

    The inclusion of emissions trading in the Kyoto Protocol reflects an important decision to address climate-change issues through flexible market mechanisms. The author addresses a number of policy issues that must be considered in designing and implementing an international greenhouse gas (GHG)

  9. The European Emission Trading System and competition. Anticompetitive measures beyond reach? An assessment of the grandfathering allocation method and the Performance Standard Rate system

    International Nuclear Information System (INIS)

    Weishaar, S.

    2006-10-01

    The center piece of the European Climate Change Program is the ambitious Greenhouse Gas Emissions Trading Scheme (EU ETS, Directive 2003/87/EC) which helps Member States to fulfill their Kyoto commitments. It particularly facilitates the old EU 15 Member States to make progress towards meeting their particular greenhouse gas emissions reduction goals committed under the Burden Sharing Agreement. EU Member States have developed national greenhouse gas allowances allocation plans and distributed these allowances to around 5000 operators with approximately 12.000 installations. Differences between allocations can give rise to severe anticompetitive effects. Undue interventions by Member States are largely contained through the application of the four freedoms, while EC Competition law (Articles 81 and 82) is geared to the containment of competitive distortions arising in particular from undue behavior of firms. State involvement in infringements is addressed through Articles 87 (State aid) and 86 (public undertakings) and the 'joint application doctrine' (Articles 10(2), 3(g), 81 and 82) which was developed by the ECJ upon recognition that State measures can undermine the effectiveness of the EC Treaty. The paper examines how anticompetitive distortions originating from Member State action under National Allocation Plans in general and by application of (historical) grandfathering and the (hypothetical) Performance Standard Rate (PSR) allocation format in particular are dealt with under European competition law rules. The PSR System is a relative benchmark system with an intended cap for all participants but without a cap for individual operators. This alternative approach has been developed and is actually in use for the Dutch NOx Emission Trading System. An interdisciplinary industrial economic and competition law framework is chosen to formulate an economic critique. After the introductory part the anticompetitive effects originating in State measures are examined

  10. Panorama 2015 - Greenhouse gas emissions in the road transport sector: moving towards inclusion in the European system of CO2 allowances?

    International Nuclear Information System (INIS)

    Coussy, Paula; Portenart, Philomene; Afriat, Marion; Alberola, Emilie

    2014-12-01

    In the year 2000, out of 41.8 Gt of global greenhouse gas (GHG) emissions, almost 10% came from transports sector. In Europe, this share of transports GHG emissions rises to 21% and emissions are forecast to rise. Against this background, should the road transport sector be included in the European Union Emissions Trading Scheme and thereby contribute to national GHG emission reduction targets? (authors)

  11. Efficiency of the emission trading. A contribution to the climate protection law

    International Nuclear Information System (INIS)

    Frenz, Walter

    2014-01-01

    The contribution discusses the following topics: Inclusion of additional sectors into the emission trading: road traffic and sea traffic, the stepwise realization and difficulties; the failed inclusion of air traffic, rigid penalties in case of violation of the fee delivery, thread for the complete mechanism, over-compliance in Germany and international perspectives.

  12. Emission trading and international competition: The impact of labor market rigidity on technology adoption and output

    International Nuclear Information System (INIS)

    Caparrós, Alejandro; Péreau, Jean-Christophe; Tazdaït, Tarik

    2013-01-01

    Emission trading systems have been proposed in different regions to reduce polluting emissions and are in use in the European Union for carbon dioxide emissions. One of the objectives of these systems is to encourage firms to adopt advanced abatement technologies. However, permits also create an incentive to reduce output, which may be seen as negative by policy makers. We analyze the impact of a rigid labour market on these two outcomes, showing the conditions necessary to avoid reductions in production while keeping the incentives to improve abatement technologies. The analysis is done for oligopolistic firms engaged in international rivalry. - Highlights: ► Emission trading reduces production and improves abatement technologies. ► Policy makers see the first outcome as negative and the second as positive. ► This paper studies the impact of market rigidity on these two outcomes. ► It shows conditions to avoid the first outcome and maintain or enhance the second

  13. CO2 emissions embodied in international trade: evidence for Spain

    International Nuclear Information System (INIS)

    Sanchez-Choliz, Julio; Duarte, Rosa

    2004-01-01

    The objective of this paper is to analyse the sectoral impacts that Spanish international trade relations have on present levels of atmospheric pollution using an input-output model. We try to evaluate the exports and imports of the Spanish economy in terms of the direct and indirect CO 2 emissions (CO 2 embodied) generated in Spain and abroad. The results show a slightly exporting behaviour in the Spanish economy which, nevertheless, hides important pollution interchanges. Moreover, the sectors transport material, mining and energy, non-metallic industries, chemical and metals are the most relevant CO 2 exporters and other services, construction, transport material and food the biggest CO 2 importers, and those whose final demands also embody more than 70% of the CO 2 emissions

  14. Investigation of the environmental Kuznets curve for carbon emissions in Malaysia: Do foreign direct investment and trade matter?

    International Nuclear Information System (INIS)

    Lau, Lin-Sea; Choong, Chee-Keong; Eng, Yoke-Kee

    2014-01-01

    Environmental degradation has become a central issue of discussion among the economists and environmentalists. In view of Malaysia's position as one of the main contributors to CO 2 emissions in Asia and its status as a fast growing economy, it is vital, therefore, to conduct a study to identify the relationship between economic growth and CO 2 emissions for Malaysia. This study attempts to examine empirically the environmental Kuznets curve hypothesis for Malaysia in the presence of foreign direct investment and trade openness both in the short- and long-run for the period 1970 to 2008.The bounds testing approach and Granger causality methodology are applied to test the interrelationships of the variables. The results of our study indicate that the inverted-U shaped relationship does exist between economic growth and CO 2 emission in both the short- and long-run for Malaysia after controlling for two additional explanatory variables, namely FDI and trade. Importantly, the results of the study also provide some crucial policy recommendations to the policy makers. - Highlights: • Examining environmental Kuznets curve hypothesis by incorporating FDI and trade. • FDI promotes higher economic growth and leads to higher environmental degradation. • Both FDI and trade directly influence CO 2 emission and economic growth. • Attraction of technology-oriented FDI is crucial for the quality of environment

  15. The impacts of policy mix for resolving overcapacity in heavy chemical industry and operating national carbon emission trading market in China

    International Nuclear Information System (INIS)

    Li, Wei; Lu, Can; Ding, Yi; Zhang, Yan-Wu

    2017-01-01

    Highlights: •A STIRPAT embed dynamic CGE model is utilized to evaluate the whole impact. •Economy and trade increased slightly under scenario shock. •Global carbon emission reduction rate ranges from 3.33% to 7.46%. •Carbon emission peaks in 2022, 2024, 2026 beyond simulating scenarios. •Energy intensity decreases 19.58–23.71% upon 2020 in contrast with 2015. -- Abstract: In place to reduce greenhouse gas emission efficiently and accomplish carbon emission peak destination ahead of 2030, a variety of policy-based interventions grounded in optimizing energy structure and boosting emission mitigation have been put forward to target carbon-and resource-intensive enterprises across China. Both defusing overcapacity in heavy chemical industry and constructing national carbon trading market are recently attached with a stronger significant importance. A STIRPAT (Stochastic Impacts by Regression on Population, Affluence, and Technology) embed dynamic CGE (computable general equilibrium) model is applied in this study to evaluate the simulation effects focusing on China’s economy, energy, and household lifestyle. We devise nine scenarios in terms of the two aforementioned mitigation strategies. The results indicate that, the optimal policy mix, balancing economic improvement, energy mix readjustment, and emission reduction to the maximize value, is founded to be declining the proportion of heavy chemical industry capacity with an annual average level of 3%, 1%, 1%, stipulating carbon price in 5.8 dollar/ton, 11.6 dollar/ton, 14.5 dollar/ton, and distributing annual carbon allowance as 3.5 billion ton, 7 billion ton, 9 billion ton during 2017–2020, 2021–2025, and 2026–2030 respectively.

  16. Prospects for international trade in environmental services: An analysis of international carbon emission off-sets

    International Nuclear Information System (INIS)

    Swisher, J.N.

    1991-01-01

    This dissertation presents a case study analysis in which the costs to a US electric utility of reducing its carbon dioxide (CO 2 ) emissions are compared with the costs of carbon-saving forestry projects in Costa Rica and Guatemala. The results show that a large electric utility in the south-central US would find it relatively inexpensive, even profitable given a conducive regulatory treatment, to reduce its CO 2 emissions by a few percent over the next ten years, through direct investment in energy end-use efficiency improvements. In comparison, the costs of the forestry projects studied in Central America range from $1/TC to a worst-case value of about $55/TC, with most project costs between $5 and $13/TC, depending on the type of project, the climate, and the opportunity cost of land. The total amount of CO 2 storage potential is significant, about 100 million tons per country, but not enough to suggest that forestry can offset more than a few percent of global CO 2 emissions from fossil fuel use. These case studies suggest that international trade in the environmental service of reducing global CO 2 accumulation could have significant economic and ecological benefits. A transaction in which a utility pays for forestry projects in exchange for credit against an emission reduction policy is an example of an international carbon emission offset (ICEO). ICEO's could provide a currency for funding carbon-saving services as a way to comply with national policies to reduce CO 2 emissions, as long as compliance is allowed through investments in other countries. This type of North-South transfer is necessary to reconcile economic efficiency and international equity, because of the disparity between the national allocations of responsibility for greenhouse gas emissions and opportunities for emission reductions

  17. Slovakia is the first to trade with pollutions

    International Nuclear Information System (INIS)

    Zackova, K.

    2003-01-01

    The Kyoto Protocol allows trading with carbon dioxide emissions. The basic principle is simple any country that's carbon dioxide production is below the set limits can sell the difference to another country that, thank to this 'purchase' will be allowed to exceed its quotas. The first one to take advantage of this possibility was Slovak engineering company Menert, s.r.o., Sala that has sold its 200 thousand tons of CO 2 through New York broker Evolution Markets to Japanese company Sumitomo. The payment should take place this year. The only condition is that Russia has to countersign the Kyoto Protocol and thus this could enter into force in 2008. Technically seen this would mean that within five years Japan would be allowed to produce greenhouse gases and exceed the quotas by the volume it managed to buy. Slovak Government guaranteed the sale to Japan. 'We have some reserves in area of greenhouse gases and so we can afford to trade with 'saved' emissions. I consider it an very interesting possibility,' said Manager of Environmental Protection Department of Ministry of Environment, Ivan Mojik

  18. Asymmetric learning by doing and dynamically efficient policy: implications for domestic and international emissions permit trading of allocating permits usefully

    International Nuclear Information System (INIS)

    Read, Peter

    2000-01-01

    Learning by doing leads to cost reductions as suppliers move down the 'experience curve'. This results in a beneficial supply side inter-temporal externality that, for dynamic efficiency, requires a higher incentive for abatement innovations than the penalty on emissions. This effect can be achieved by a dedicated emissions tax or by a proportionate abatement obligation or by allocating permits usefully. The latter arrangement is compatible with the effective cap on emissions that is secured by an emissions trading scheme. Each of the three possibilities results in a reduced loss of international competitivity in policy-committed regions, in less 'leakage, and in more technology transfer. Implications for trading in emissions permits and in project-related credits are discussed. (Author)

  19. An Optimization Scheduling Model for Wind Power and Thermal Power with Energy Storage System considering Carbon Emission Trading

    Directory of Open Access Journals (Sweden)

    Huan-huan Li

    2015-01-01

    Full Text Available Wind power has the characteristics of randomness and intermittence, which influences power system safety and stable operation. To alleviate the effect of wind power grid connection and improve power system’s wind power consumptive capability, this paper took emission trading and energy storage system into consideration and built an optimization model for thermal-wind power system and energy storage systems collaborative scheduling. A simulation based on 10 thermal units and wind farms with 2800 MW installed capacity verified the correctness of the models put forward by this paper. According to the simulation results, the introduction of carbon emission trading can improve wind power consumptive capability and cut down the average coal consumption per unit of power. The introduction of energy storage system can smooth wind power output curve and suppress power fluctuations. The optimization effects achieve the best when both of carbon emission trading and energy storage system work at the same time.

  20. Policy recommendations for Canadian municipal greenhouse gas trading

    International Nuclear Information System (INIS)

    Seskus, A.

    2002-01-01

    The municipal policies regarding greenhouse gas (GHG) emissions trading from municipalities in developed countries outside of Canada were examined in an effort to help establish a position on municipal carbon trading in Canada. The main uncertainty regarding this new concept of GHG emissions trading is the fate of the Kyoto Protocol, when or if it will be ratified. It is premature for municipalities to have well-established polices about emissions trading because the country in which a municipality is located determines the position towards GHG emissions trading. For this study, an extensive literature search of municipal policies was conducted for both GHG trading and domestic national GHG trading. This was followed by a survey on emissions trading which was distributed to more than 350 member cities (including the United States, Europe and Australia) of the International Council for Environmental Initiatives (ICLEI) Cities for Climate Protection (CCP) Campaign. The literature search revealed that municipalities outside of Canada have not yet formulated policies to address the issue of emissions trading. Only 7 per cent of the cities felt that they were informed about emissions trading, even in Europe and Australia where domestic emissions trading is closer to becoming a reality. This paper demonstrated that it is evident that more training is needed for municipalities regarding this issue. For the very few cities that had developed a GHG trading policy, each municipal policy supported municipal participation in emissions trading under conditions that included an environmental retirement, a do-no-harm clause, or an obligation to meet voluntary commitments before excess emissions can be traded. refs., tabs., figs

  1. 18 CFR 2.25 - Ratemaking treatment of the cost of emissions allowances in coordination transactions.

    Science.gov (United States)

    2010-04-01

    ... the cost of emissions allowances in coordination transactions. 2.25 Section 2.25 Conservation of Power... § 2.25 Ratemaking treatment of the cost of emissions allowances in coordination transactions. (a... Commission provides for recovery of variable costs on an incremental basis, the Commission will allow...

  2. How to design greenhouse gas trading in the EU?

    International Nuclear Information System (INIS)

    Svendsen, G.T.

    2003-01-01

    A new and remarkable Green Paper about how to trade greenhouse gases (GHG) in the EU has recently been published by the Commission of the European Union. This to achieve the stated 8% reduction target level. The Green Paper raises ten questions about how greenhouse gas permit trading should be designed in the EU before year 2005. These ten questions can be compressed into four main issues, namely target group, allocation of emission allowances, how to mix emission trading with other instruments and fourth enforcement. In the literature, there is a strong need to guide decision-makers and stimulate academic debates concerning the actual design of a simple and workable GHG market model for the EU. This model must take both economic, administrative and political concerns into account so that it is feasible in practice. Based on our findings, we therefore develop a policy recommendation concerning the future design of GHG permit trading in the EU. (author)

  3. How to design greenhouse gas trading in the EU?

    International Nuclear Information System (INIS)

    Tinggaard Svendsen, G.; Vesterdal, M.

    2001-01-01

    A new and remarkable Green Paper about how to trade Greenhouse gases (GHG) in the EU has recently been published by the Commission of the European Union. This to achieve the stated 8% reduction target level. The Green paper raises ten questions about how greenhouse gas permit trading should be designed in the EU before year 2005. These ten questions can be compressed into four main issues, namely target group, allocation of emission allowances, how to mix emission trading with other instruments and fourth enforcement. In the literature, there is a strong need to guide decision-makers and stimulate academic debates concerning the actual design of a simple and workable GHG market model for the EU. This model must take both economic, administrative and political concerns into account so that it is feasible in practice. Based on our findings, we therefore develop a policy recommendation concerning the future design of GHG permit trading in the EU. (au)

  4. How to design greenhouse gas trading in the EU?

    Energy Technology Data Exchange (ETDEWEB)

    Tinggaard Svendsen, G; Vesterdal, M

    2001-07-01

    A new and remarkable Green Paper about how to trade Greenhouse gases (GHG) in the EU has recently been published by the Commission of the European Union. This to achieve the stated 8% reduction target level. The Green paper raises ten questions about how greenhouse gas permit trading should be designed in the EU before year 2005. These ten questions can be compressed into four main issues, namely target group, allocation of emission allowances, how to mix emission trading with other instruments and fourth enforcement. In the literature, there is a strong need to guide decision-makers and stimulate academic debates concerning the actual design of a simple and workable GHG market model for the EU. This model must take both economic, administrative and political concerns into account so that it is feasible in practice. Based on our findings, we therefore develop a policy recommendation concerning the future design of GHG permit trading in the EU. (au)

  5. Greenhouse gas emission management in the US - current regional initiatives compared with international carbon trading programs

    International Nuclear Information System (INIS)

    Rink, A.G.; Law, S.

    2009-01-01

    In the United States (US) there are currently voluntary reporting programs (EPA Climate Leaders, Carbon Disclosure Project and The Climate Registry), organized market-based trading platforms (Chicago Climate Exchange and The Green Exchange) and proposed regional mandatory cap and trade programs in California, the Northeast, the West and the Midwest. The past success of the US Acid Rain 'cap-and-trade' system market-based format together with the availability of the European Union Emission Trading Scheme to serve as a template for future greenhouse gas regulations is promising as the US can participate in the world wide carbon markets already established. (author)

  6. The efficiency costs of separating carbon markets under the EU emissions trading scheme: A quantitative assessment for Germany

    International Nuclear Information System (INIS)

    Boehringer, Christoph; Hoffmann, Tim; Manrique-de-Lara-Penate, Casiano

    2006-01-01

    From 1 January 2005 onwards the European Union has launched the first large-scale international carbon emissions trading program. As the EU Emissions Trading Scheme (EU-ETS) covers only part of domestic carbon emissions, it implies a segmented environmental regulation scheme: Each EU Member State must specify additional domestic abatement policies for the sectors outside the EU-ETS in order to meet its emissions budget under the EU Burden Sharing Agreement. We highlight the generic problems of segmented carbon regulation in terms of information requirements for international carbon prices and domestic abatement costs of sectors outside the EU-ETS. Based on numerical simulations for Germany, we quantify the excess costs of segmented carbon regulation and conclude that inefficiencies can be much better explained by lobbying of influential EU-ETS sectors than by information problems. (Author)

  7. A Panel Estimation of the Relationship Between Trade Liberalization, Economic Growth and CO2 Emissions in BRICS Countries

    Directory of Open Access Journals (Sweden)

    Mehrara Mohsen

    2013-12-01

    Full Text Available In the last few years, several studies have found an inverted-U relationship between per capita income and environmental degradation. This relationship, known as the environmental Kuznets curve (EKC, suggests that environmental degradation increases in the early stages of growth, but it eventually decreases as income exceeds a threshold level. However, this paper investigation relationship between per capita CO2 emission, growth economics and trade liberalization based on econometric techniques of unit root test, co-integration and a panel data set during the period 1960-1996 for BRICS countries. Data properties were analyzed to determine their stationarity using the LLC , IPS , ADF and PP unit root tests which indicated that the series are I(1. We find a cointegration relationship between per capita CO2 emission, growth economics and trade liberalization by applying Kao panel cointegration test. The evidence indi\tcates that in the long-run trade liberalization has a positive significant impact on CO2 emissions and impact of trade liberalization on emissions growth depends on the level of income Our findings suggest that there is a quadratic relationship between relationship between real GDP and CO2 emissions for the region as a whole. The estimated long-run coefficients of real GDP and its square satisfy the EKC hypothesis in all of studied countries. Our estimation shows that the inflection point or optimal point real GDP per capita is about 5269.4 dollars. The results show that on average, sample countries are on the positive side of the inverted U curve. The turning points are very low in some cases and very high in other cases, hence providing poor evidence in support of the EKC hypothesis. Thus, our findings suggest that all BRICS countries need to sacrifice economic growth to decrease their emission levels

  8. The surveillance of the electricity wholesale market and emission trading market; Die Ueberwachung von Stromgrosshandelsmarkt und Emissionshandelsmarkt

    Energy Technology Data Exchange (ETDEWEB)

    Luedemann, Volker [Hochschule Osnabrueck (Germany). Forschungszentrum Energiewirtschaft/Energierecht (fee); Hochschule Osnabrueck (Germany). Wirtschafts- und Wettbewerbsrecht; Konar, Selma [Sozietaet Becker Buettner Held, Muenchen (Germany)

    2015-05-15

    The Regulation on Wholesale Market Integrity and Transparency (REMIT) and the German Law on the Establishment of a Market Transparency Office for Wholesale Trade in Electricity and Gas (MTS-G) have fundamentally changed the surveillance of electricity wholesale trade in Germany. From now on the Federal Network Agency and the Federal Cartel Office will be jointly responsible for monitoring the electricity wholesale trade for suspicious market phenomena and abusive behaviour. The REMIT specifies that the electricity trade must be surveilled ''with due consideration to interactions'' with the emission trade system. However, occurrences observed in recent years have shown that the emission trading system is in need of reform. This has also been recognised and has prompted extensive corrective action by the regulatory authorities of the European Union. These changes have yet to be transposed into the national surveillance regimes. The present article explains why the new role accorded to the Federal Network Agency under the REMIT fails to eliminate the structural shortcomings of the old surveillance system. At least the decision to put the collection and evaluation of data exclusively in the hands of the market transparency office and the cooperation this will prompt between the supervisory authorities responsible will make the task of surveilling the energy wholesale trading market a lot easier for the authorities. The energy transition and its exigencies will yet lead to further changes in the market and its surveillance regime.

  9. Community system updating and extension concerning greenhouse gas emissions duties trading; Actualizacion y ampliacion del regimen comunitario de comercio de derechos de emision de gases de efecto invernadero

    Energy Technology Data Exchange (ETDEWEB)

    Arrieta-Langarika, I.

    2010-07-01

    Approving 29/2009/CE Directive, that amends Directive 2003/87/EC, relating to a trading system for allowances of greenhouse gas emissions in the Community, the European Union wants to improve this system, and, in that way, providing an appropriate tool for achieving the emissions reduction targets, set for 2020: in particular, reducing the emissions of carbon dioxide (CO{sub 2}) in a 20% compared to 1990 levels. Recognizing the virtues of this system as an innovative tool for reducing emissions, it should be harmonized through the use of common standards that ensure equal conditions of the facilities affected and their update, among others, increasing their scope and establishing a system of re-allocation to reduce emissions. At the same time, the regulation adopted by the EU should not address possible competition difficulties, that may arise for the industries affected by this emission trading system, more specifically, the problem of carbon leakage: the phenomenon refers to the risk that European industries must move outside the EU for not being able to cope with competition from other countries with less stringent limitations on this matter. In any case, the regime established by Directive 29/2009/CE is subject to possible changes in function of international countries might conclude. (Author) 8 refs.

  10. The Best (and Worst) of GHG Emission Trading Systems: Comparing the EU ETS with Its Followers

    International Nuclear Information System (INIS)

    Borghesi, Simone; Montini, Massimiliano

    2016-01-01

    The European Emission Trading System (EU ETS) is generally considered as the prototype system for the other Emission Trading Systems (ETSs) for the reduction of greenhouse gases (GHGs) that are rapidly spreading around the world. To get a deeper understanding on the actual capacity of the EU ETS to stand as a model for the other ETSs, the present paper discusses the differences and similarities of the EU ETS with respect to the other main ETSs and the emerging trends that these systems seem to share, comparing the different cap-and-trade regimes in order to identify the best practices and the desirable features that future ETSs should have. As emerges from the comparative analysis performed in this article, although the followers share some common flaws with the EU ETS, they have also shown the capacity to innovate and possibly devise alternative ways to manage their own ETS regimes, which may in the long term jeopardize the EU leadership in the ETSs context.

  11. The Best (and Worst) of GHG Emission Trading Systems: Comparing the EU ETS with Its Followers

    Energy Technology Data Exchange (ETDEWEB)

    Borghesi, Simone, E-mail: simone.borghesi@unisi.it; Montini, Massimiliano [University of Siena, Siena (Italy)

    2016-07-29

    The European Emission Trading System (EU ETS) is generally considered as the prototype system for the other Emission Trading Systems (ETSs) for the reduction of greenhouse gases (GHGs) that are rapidly spreading around the world. To get a deeper understanding on the actual capacity of the EU ETS to stand as a model for the other ETSs, the present paper discusses the differences and similarities of the EU ETS with respect to the other main ETSs and the emerging trends that these systems seem to share, comparing the different cap-and-trade regimes in order to identify the best practices and the desirable features that future ETSs should have. As emerges from the comparative analysis performed in this article, although the followers share some common flaws with the EU ETS, they have also shown the capacity to innovate and possibly devise alternative ways to manage their own ETS regimes, which may in the long term jeopardize the EU leadership in the ETSs context.

  12. An efficient algorithm for bi-objective combined heat and power production planning under the emission trading scheme

    International Nuclear Information System (INIS)

    Rong, Aiying; Figueira, José Rui; Lahdelma, Risto

    2014-01-01

    Highlights: • Define fuel mix setting for the bi-objective CHP environmental/economic dispatch. • Develop an efficient algorithm for constructing the Pareto frontier for the problem. • Time complexity analysis is conducted for the proposed algorithm. • The algorithm is theoretically compared against a traditional algorithm. • The efficiency of the algorithm is justified by numerical results. - Abstract: The growing environmental awareness and the apparent conflicts between economic and environmental objectives turn energy planning problems naturally into multi-objective optimization problems. In the current study, mixed fuel combustion is considered as an option to achieve tradeoff between economic objective (associated with fuel cost) and emission objective (measured in CO 2 emission cost according to fuels and emission allowance price) because a fuel with higher emissions is usually cheaper than one with lower emissions. Combined heat and power (CHP) production is an important high-efficiency technology to promote under the emission trading scheme. In CHP production, the production planning of both commodities must be done in coordination. A long-term planning problem decomposes into thousands of hourly subproblems. In this paper, a bi-objective multi-period linear programming CHP planning model is presented first. Then, an efficient specialized merging algorithm for constructing the exact Pareto frontier (PF) of the problem is presented. The algorithm is theoretically and empirically compared against a modified dichotomic search algorithm. The efficiency and effectiveness of the algorithm is justified

  13. Emissions trading in China: Progress and prospects

    International Nuclear Information System (INIS)

    Zhang, Da; Karplus, Valerie J.; Cassisa, Cyril; Zhang, Xiliang

    2014-01-01

    To control rising energy use and CO 2 emissions, China's leadership has enacted energy and CO 2 intensity targets as part of the Twelfth Five-Year Plan (the Twelfth FYP, 2011–2015). Both to support achievement of these targets and to lay the foundation for a future national market-based climate policy, at the end of 2011, China's government selected seven areas to establish pilot emissions trading systems (ETS). In this paper, we provide a comprehensive overview of current status of China's seven ETS pilots. Pilots differ in the extent of sectoral coverage, the size threshold for qualifying installations, and other design features that reflect diverse settings and priorities. By comparing the development of the ETS pilots, we identify issues that have emerged in the design process, and outline important next steps for the development of a national ETS. - Highlights: • We summarize the history of China's climate policy and milestones in China's ETS development. • We provide a comprehensive overview of the current status of China's seven ETS pilots. • We discuss some key issues and challenges related to the implementation of the ETS pilots. • We identify next steps to support development of a national ETS in China

  14. CO2 emissions, real output, energy consumption, trade, urbanization and financial development: testing the EKC hypothesis for the USA.

    Science.gov (United States)

    Dogan, Eyup; Turkekul, Berna

    2016-01-01

    This study aims to investigate the relationship between carbon dioxide (CO2) emissions, energy consumption, real output (GDP), the square of real output (GDP(2)), trade openness, urbanization, and financial development in the USA for the period 1960-2010. The bounds testing for cointegration indicates that the analyzed variables are cointegrated. In the long run, energy consumption and urbanization increase environmental degradation while financial development has no effect on it, and trade leads to environmental improvements. In addition, this study does not support the validity of the environmental Kuznets curve (EKC) hypothesis for the USA because real output leads to environmental improvements while GDP(2) increases the levels of gas emissions. The results from the Granger causality test show that there is bidirectional causality between CO2 and GDP, CO2 and energy consumption, CO2 and urbanization, GDP and urbanization, and GDP and trade openness while no causality is determined between CO2 and trade openness, and gas emissions and financial development. In addition, we have enough evidence to support one-way causality running from GDP to energy consumption, from financial development to output, and from urbanization to financial development. In light of the long-run estimates and the Granger causality analysis, the US government should take into account the importance of trade openness, urbanization, and financial development in controlling for the levels of GDP and pollution. Moreover, it should be noted that the development of efficient energy policies likely contributes to lower CO2 emissions without harming real output.

  15. Evaluating CO2 emissions, cost, and service quality trade-offs in an urban delivery system case study

    Directory of Open Access Journals (Sweden)

    Erica Wygonik

    2011-07-01

    The results demonstrate there is not a trade-off between CO2 emissions and cost, but that these two metrics trend together. This suggests the most effective way to encourage fleet operators to limit emissions is to increase the cost of fuel or CO2 production, as this is consistent with current incentives that exist to reduce cost, and therefore emissions.

  16. Introducing CO2 Allowances, Higher Prices For All Consumers; Higher Revenues For Whom?

    NARCIS (Netherlands)

    Gurkan, G.; Langestraat, R.; Ozdemir, O.

    2013-01-01

    Abstract Introducing a ceiling on total carbon dioxide (CO2) emissions and allowing polluting industries to buy and sell permits to meet it (known as a cap-and-trade system) affects investment strategies, generation quantities, and prices in electricity markets. In this paper we analyze these

  17. The EU Emissions Trading Scheme and Biomass. Final Report

    International Nuclear Information System (INIS)

    Schwaiger, H.; Tuerk, A.; Arasto, A.; Vehlow, J.; Kautto, N.; Sijm, J.; Hunder, M.; Brammer, J.

    2009-02-01

    Within its Energy and Climate Package, adopted by the European Parliament in December 2008, the European commission set a 10% minimum for the market share of renewables in the transport sector in 2020. To find the appropriate instruments to reach this target and the instrument mix with which biomass use in general could be best stimulated are the main questions of this project. An important instrument of the European Climate Policy is the European Emissions Trading Scheme (EU-ETS), which started operation in 2005. Previous work done within Bioenergy NoE showed that only a high share of auctioning of allowances and a high CO2 price provide necessary incentives for a higher biomass use. According to the Energy and Climate Package, all allowances will be auctioned in the energy sector from 2013 on, with exceptions for a few CEE countries. Based on work done within the project, a model has been developed to analyse at which CO2 price biomass becomes competitive in case of 100 per cent auctioning or at a lower level. The European Commission furthermore decided not to include the road transport sector into the EU-ETS until 2020. Whether the inclusion of the road transport sector in the EU-ETS, could help introducing biofuels, a separate trading scheme for biofuels should be set up, or biofuels should be addressed with other policy instruments, was another main question of this project. The first result shows that an integrated scheme would hardly have any effects on the use of liquid biofuels in the transportation sector, but might cause higher CO2 prices for the energy and industry sector. A separate trading scheme has been implemented in the UK in 2008, California is planning such as scheme in addition to include the road transport sector into the future ETS. Within this project the design of such as system has been elaborated based on the comparison of several policy instruments to increase the use of liquid biofuels in the transportation sector. Policy interaction

  18. Forecasting the Allocation Ratio of Carbon Emission Allowance Currency for 2020 and 2030 in China

    Directory of Open Access Journals (Sweden)

    Shihong Zeng

    2016-07-01

    Full Text Available Many countries and scholars have used various strategies to improve and optimize the allocation ratios for carbon emission allowances. This issue is more urgent for China due to the uneven development across the country. This paper proposes a new method that divides low-carbon economy development processes into two separate periods: from 2020 to 2029 and from 2030 to 2050. These two periods have unique requirements and emissions reduction potential; therefore, they must involve different allocation methods, so that reduction behaviors do not stall the development of regional low-carbon economies. During the first period, a more deterministic economic development approach for the carbon emission allowance allocation ratio should be used. During the second period, more adaptive and optimized policy guidance should be employed. We developed a low-carbon economy index evaluation system using the entropy weight method to measure information filtering levels. We conducted vector autoregressive correlation tests, consulted 60 experts for the fuzzy analytic hierarchy process, and we conducted max-min standardized data processing tests. This article presents first- and second-period carbon emission allowance models in combination with a low-carbon economy index evaluation system. Finally, we forecast reasonable carbon emission allowance allocation ratios for China for the periods starting in 2020 and 2030. A good allocation ratio for the carbon emission allowance can help boost China’s economic development and help the country reach its energy conservation and emissions reduction goals.

  19. Strategic partitioning of emissions allowances in the EU ETS

    Energy Technology Data Exchange (ETDEWEB)

    Boehringer, Christoph (Carl von Ossietzky Univ. Oldenburg (Germany)); Rosendahl, Knut Einar (Research Dept., Statistics Norway, Oslo (Norway))

    2008-07-01

    The EU ETS opens up for strategic partitioning of emissions allowances by the Member States. In this paper we examine the potential effects of such strategic behavior on quota prices and abatement costs. We show that although marginal abatement costs in the sectors outside the EU ETS become quite differentiated, the effects on the quota price and total abatement costs are small. More abatement, however, takes place in the old Member States that are importers of allowances, compared to the cost-effective outcome. Single countries can nevertheless significantly affect the outcome of the EU ETS by exploiting their market power

  20. Cap and trade schemes on waste management: A case study of the Landfill Allowance Trading Scheme (LATS) in England

    International Nuclear Information System (INIS)

    Calaf-Forn, Maria; Roca, Jordi; Puig-Ventosa, Ignasi

    2014-01-01

    Highlights: • LATS has been effective to achieve a reduction of the amount of landfilled waste. • LATS has been one of the few environmental instruments for waste management with a cap and trade methodology. • LATS has achieved to increase recycling of the biodegradable and other waste fractions. - Abstract: The Landfill Allowance Trading Scheme (LATS) is one of the main instruments used in England to enforce the landfill diversion targets established in the Directive 1999/31/EC of the European Parliament and of the Council of 26 April 1999 on the landfill of waste (Landfill Directive). Through the LATS, biodegradable municipal waste (BMW) allowances for landfilling are allocated to each local authority, otherwise known as waste disposal authorities (WDAs). The quantity of landfill allowances received is expected to decrease continuously from 2005/06 to 2019/20 so as to meet the objectives of the Landfill Directive. To achieve their commitments, WDAs can exchange, buy, sell or transfer allowances among each other, or may re-profile their own allocation through banking and/or borrowing. Despite the goals for the first seven years – which included two target years (2005/06 and 2009/10) – being widely achieved (the average allocation of allowances per WDA was 22.9% higher than those finally used), market activity among WDAs was high and prices were not very stable. Results in terms of waste reduction and recycling levels have been satisfactory. The reduction of BMW landfilled (in percentage) was higher during the first seven years of the LATS period (2005/06–2011/12) (around 7% annually) than during the previous period (2001/02–2004/05) (4.2% annually). Since 2008, the significance of the LATS diminished because of an increase in the rate of the UK Landfill Tax. The LATS was suppressed after the 2012/13 target year, before what it was initially scheduled. The purpose of this paper is to describe the particularities of the LATS, analyse its performance as

  1. Cap and trade schemes on waste management: A case study of the Landfill Allowance Trading Scheme (LATS) in England

    Energy Technology Data Exchange (ETDEWEB)

    Calaf-Forn, Maria, E-mail: mcalaf@ent.cat [Institut de Ciència i Tecnologia Ambientals (ICTA), Universitat Autònoma de Barcelona (UAB), E-08193 Bellaterra, Barcelona (Spain); ENT Environment and Management, Carrer Sant Joan 39, First Floor, E-08800 Vilanova i la Geltrú, Barcelona (Spain); Roca, Jordi [Departament de Teoria Econòmica, Universitat de Barcelona (UB), Diagonal, 696, E-08034 Barcelona (Spain); Puig-Ventosa, Ignasi [ENT Environment and Management, Carrer Sant Joan 39, First Floor, E-08800 Vilanova i la Geltrú, Barcelona (Spain)

    2014-05-01

    Highlights: • LATS has been effective to achieve a reduction of the amount of landfilled waste. • LATS has been one of the few environmental instruments for waste management with a cap and trade methodology. • LATS has achieved to increase recycling of the biodegradable and other waste fractions. - Abstract: The Landfill Allowance Trading Scheme (LATS) is one of the main instruments used in England to enforce the landfill diversion targets established in the Directive 1999/31/EC of the European Parliament and of the Council of 26 April 1999 on the landfill of waste (Landfill Directive). Through the LATS, biodegradable municipal waste (BMW) allowances for landfilling are allocated to each local authority, otherwise known as waste disposal authorities (WDAs). The quantity of landfill allowances received is expected to decrease continuously from 2005/06 to 2019/20 so as to meet the objectives of the Landfill Directive. To achieve their commitments, WDAs can exchange, buy, sell or transfer allowances among each other, or may re-profile their own allocation through banking and/or borrowing. Despite the goals for the first seven years – which included two target years (2005/06 and 2009/10) – being widely achieved (the average allocation of allowances per WDA was 22.9% higher than those finally used), market activity among WDAs was high and prices were not very stable. Results in terms of waste reduction and recycling levels have been satisfactory. The reduction of BMW landfilled (in percentage) was higher during the first seven years of the LATS period (2005/06–2011/12) (around 7% annually) than during the previous period (2001/02–2004/05) (4.2% annually). Since 2008, the significance of the LATS diminished because of an increase in the rate of the UK Landfill Tax. The LATS was suppressed after the 2012/13 target year, before what it was initially scheduled. The purpose of this paper is to describe the particularities of the LATS, analyse its performance as

  2. Greenhouse gas trading starts up

    Science.gov (United States)

    Showstack, Randy

    While nations decide on whether to sign on to the Kyoto Protocol on climate change, some countries and private companies are moving forward with greenhouse gas emissions trading.A 19 March report, "The Emerging International Greenhouse Gas Market," by the Pew Center on Global Climate Change, reports that about 65 greenhouse gas emissions trades for quantities above 1,000 metric tons of carbon dioxideequivalent already have occurred worldwide since 1996. Many of these trades have taken place under a voluntary, ad hoc framework, though the United Kingdom and Denmark have established their own domestic emissions trading programs.

  3. Inequalities in Global Trade: A Cross-Country Comparison of Trade Network Position, Economic Wealth, Pollution and Mortality.

    Science.gov (United States)

    Prell, Christina; Sun, Laixiang; Feng, Kuishuang; Myroniuk, Tyler W

    2015-01-01

    In this paper we investigate how structural patterns of international trade give rise to emissions inequalities across countries, and how such inequality in turn impact countries' mortality rates. We employ Multi-regional Input-Output analysis to distinguish between sulfur-dioxide (SO2) emissions produced within a country's boarders (production-based emissions) and emissions triggered by consumption in other countries (consumption-based emissions). We use social network analysis to capture countries' level of integration within the global trade network. We then apply the Prais-Winsten panel estimation technique to a panel data set across 172 countries over 20 years (1990-2010) to estimate the relationships between countries' level of integration and SO2 emissions, and the impact of trade integration and SO2 emission on mortality rates. Our findings suggest a positive, (log-) linear relationship between a country's level of integration and both kinds of emissions. In addition, although more integrated countries are mainly responsible for both forms of emissions, our findings indicate that they also tend to experience lower mortality rates. Our approach offers a unique combination of social network analysis with multiregional input-output analysis, which better operationalizes intuitive concepts about global trade and trade structure.

  4. Dynamic impact of urbanization, economic growth, energy consumption, and trade openness on CO 2 emissions in Nigeria.

    Science.gov (United States)

    Ali, Hamisu Sadi; Law, Siong Hook; Zannah, Talha Ibrahim

    2016-06-01

    The objective of this paper is to examine the dynamic impact of urbanization, economic growth, energy consumption, and trade openness on CO 2 emissions in Nigeria based on autoregressive distributed lags (ARDL) approach for the period of 1971-2011. The result shows that variables were cointegrated as null hypothesis was rejected at 1 % level of significance. The coefficients of long-run result reveal that urbanization does not have any significant impact on CO 2 emissions in Nigeria, economic growth, and energy consumption has a positive and significant impact on CO 2 emissions. However, trade openness has negative and significant impact on CO 2 emissions. Consumption of energy is among the main determinant of CO 2 emissions which is directly linked to the level of income. Despite the high level of urbanization in the country, consumption of energy still remains low due to lower income of the majority populace and this might be among the reasons why urbanization does not influence emissions of CO 2 in the country. Initiating more open economy policies will be welcoming in the Nigerian economy as the openness leads to the reduction of pollutants from the environment particularly CO 2 emissions which is the major gases that deteriorate physical environment.

  5. Designing an emissions trading scheme for China. An up-to-date climate policy assessment

    Energy Technology Data Exchange (ETDEWEB)

    Huebler, Michael [Zentrum fuer Europaeische Wirtschaftsforschung GmbH (ZEW), Mannheim (Germany); Hannover Univ. (Germany). Inst. for Environmental Economics and World Trade; Loeschel, Andreas; Voigt, Sebastian [Zentrum fuer Europaeische Wirtschaftsforschung GmbH (ZEW), Mannheim (Germany)

    2014-07-01

    We assess recent Chinese climate policy proposals in a multi-region, multi-sector computable general equilibrium model with a Chinese carbon emissions trading scheme (ETS). When the emissions intensity per GDP in 2020 is required to be 45% lower than in 2005, the model simulations indicate that the climate policy-induced welfare loss in 2020, measured as the level of GDP and welfare in 2020 under climate policy relative to their level under business-as-usual (BAU) in the same year, is about 1%. The Chinese welfare loss in 2020 slightly increases in the Chinese rate of economic growth in 2020. When keeping the emissions target fixed at the 2020 level after 2020 in absolute terms, the welfare loss will reach about 2% in 2030. If China's annual economic growth rate is 0.5 percentage points higher (lower), the climate policy-induced welfare loss in 2030 will rise (decline) by about 0.5 percentage points. Full auctioning of carbon allowances results in very similar macroeconomic effects as free allocation, but full auctioning leads to higher reductions in output than free allocation for ETS sectors. Linking the Chinese to the European ETS and restricting the transfer volume to one third of the EU's reduction effort creates at best a small benefit for China, yet with smaller sectoral output reductions than auctioning. These results highlight the importance of designing the Chinese ETS wisely.

  6. Designing an emissions trading scheme for China. An up-to-date climate policy assessment

    International Nuclear Information System (INIS)

    Huebler, Michael

    2014-01-01

    We assess recent Chinese climate policy proposals in a multi-region, multi-sector computable general equilibrium model with a Chinese carbon emissions trading scheme (ETS). When the emissions intensity per GDP in 2020 is required to be 45% lower than in 2005, the model simulations indicate that the climate policy-induced welfare loss in 2020, measured as the level of GDP and welfare in 2020 under climate policy relative to their level under business-as-usual (BAU) in the same year, is about 1%. The Chinese welfare loss in 2020 slightly increases in the Chinese rate of economic growth in 2020. When keeping the emissions target fixed at the 2020 level after 2020 in absolute terms, the welfare loss will reach about 2% in 2030. If China's annual economic growth rate is 0.5 percentage points higher (lower), the climate policy-induced welfare loss in 2030 will rise (decline) by about 0.5 percentage points. Full auctioning of carbon allowances results in very similar macroeconomic effects as free allocation, but full auctioning leads to higher reductions in output than free allocation for ETS sectors. Linking the Chinese to the European ETS and restricting the transfer volume to one third of the EU's reduction effort creates at best a small benefit for China, yet with smaller sectoral output reductions than auctioning. These results highlight the importance of designing the Chinese ETS wisely.

  7. The impact of Chinese carbon emission trading scheme (ETS) on low carbon energy (LCE) investment

    International Nuclear Information System (INIS)

    Mo, Jian-Lei; Agnolucci, Paolo; Jiang, Mao-Rong; Fan, Ying

    2016-01-01

    China is planning to introduce emission trading scheme (ETS) to decrease CO_2 emission. As low carbon energy (LCE) will play a pivotal role in reducing CO_2 emissions, our paper is to assess the extent and the conditions under which a carbon ETS can deliver LCE investment in China. We chose wind technology as a case study and a real-option based model was built to explore the impact of a number of variables and design features on investment decisions, e.g. carbon and electricity price, carbon market risk, carbon price floor and ceiling and on-grid ratio. We compute critical values of these variables and features and explore trade-offs among them. According to our work, a carbon ETS has a significant effect on wind power plant investment although it cannot support investment in wind power on its own. Carbon price stabilization mechanisms such as carbon price floor can significantly improve the effect of carbon ETS but the critical floor to support investment is still much higher than the carbon price in China pilot ETSs. Our results show that other policy measures will be needed to promote low-carbon energy development in China. - Highlights: • The impact of Chinese emission trading scheme on low carbon energy investment is assessed. • A real-option based investment decision model under uncertainty is built and employed. • Key variables and features of ETS influencing wind power investment are explored. • Chinese carbon ETS cannot support low carbon energy investment on its own. • Other policy measures complementing ETS are still needed and should be coordinated.

  8. Balance of Carbon Embodied in Bilateral Trade between France and China: Transfer of Emission or New Creation?

    International Nuclear Information System (INIS)

    He, Jie; Jacquemin, Johan

    2016-01-01

    We calculate the balance of carbon embodied in trade (BCET) between China and France during 1996-2005. Our results confirm China's role as a net carbon exporter and the fast increasing trend of the surplus in BCET since China's adhesion to the World Trade Organization. However, the quasi-totality of the carbon surplus is due to China's low carbon efficiency. The part of carbon emission discharged on China's territory that is directly transferred from France via trade stays very little (1-2 %). The bilateral trade between China and France seems to continue benefiting mainly from their difference in factor endowment; the environmental regulation related comparative advantage plays only a marginal role

  9. Balance of Carbon Embodied in Bilateral Trade between France and China: Transfer of Emission or New Creation?

    International Nuclear Information System (INIS)

    He, Jie; Jacquemin, Johan

    2014-01-01

    We calculate the balance of carbon embodied in trade (BCET) between China and France during 1996-2005. Our results confirm China's role as a net carbon exporter and the fast increasing trend of the surplus in BCET since China's adhesion to the World Trade Organization. However, the quasi-totality of the carbon surplus is due to China's low carbon efficiency. The part of carbon emission discharged on China's territory that is directly transferred from France via trade stays very little (1-2 %). The bilateral trade between China and France seems to continue benefiting mainly from their difference in factor endowment; the environmental regulation related comparative advantage plays only a marginal role

  10. How to dismember a potent instrument - the intractability of the emission trade proposal of the European Commission

    International Nuclear Information System (INIS)

    Honkatukia, Juha; Kemppi, Heikki; Perrels, Adriaan

    2003-01-01

    The initiative of the European Commission to start up an emission trade system is fraught with difficulties. In order to be viable it should provide value added to justify the extra efforts it requires. A review of the draft-directive unveils many critical issues, that undermine the value added. Many proposed measures and conditions increase the cost of participation, and reduce the emission trade market volume, thereby affecting both level and volatility of the permit price. Furthermore, the proposed organisation of the system is unbalanced as it simultaneously leans on a devolution of policy planning tasks, a centralisation of decision rights and, an asymmetry in information levels and deployable specialist knowledge. As a consequence the directive proposals would complicate but not prevent gaming during the establishment and approval phase of the trade system. The paper discusses the burden sharing between trading and non-trading segments in the member countries, with special reference to Finland the possible responses of companies to increased transaction cost and uncertainty, and the consequences of the permit trade requirements for the earlier devised domestic climate policy and as a consequence for energy efficiency policies. The paper is based on a study conducted for the Ministry for the Environment, involving both an in-depth review of the directive and AGE-E3 model based calculations. The paper focuses on the analytical-qualitative clarification of effects. Some model results are added to underline the practical relevance of the identified risks and obstacles

  11. How to dismember a potent instrument - the intractability of the emission trade proposal of the European Commission

    Energy Technology Data Exchange (ETDEWEB)

    Honkatukia, Juha; Kemppi, Heikki; Perrels, Adriaan [Goverment Inst. of Economic Research, VATT, Helsinki (Finland)

    2003-07-01

    The initiative of the European Commission to start up an emission trade system is fraught with difficulties. In order to be viable it should provide value added to justify the extra efforts it requires. A review of the draft-directive unveils many critical issues, that undermine the value added. Many proposed measures and conditions increase the cost of participation, and reduce the emission trade market volume, thereby affecting both level and volatility of the permit price. Furthermore, the proposed organisation of the system is unbalanced as it simultaneously leans on a devolution of policy planning tasks, a centralisation of decision rights and, an asymmetry in information levels and deployable specialist knowledge. As a consequence the directive proposals would complicate but not prevent gaming during the establishment and approval phase of the trade system. The paper discusses the burden sharing between trading and non-trading segments in the member countries, with special reference to Finland the possible responses of companies to increased transaction cost and uncertainty, and the consequences of the permit trade requirements for the earlier devised domestic climate policy and as a consequence for energy efficiency policies. The paper is based on a study conducted for the Ministry for the Environment, involving both an in-depth review of the directive and AGE-E3 model based calculations. The paper focuses on the analytical-qualitative clarification of effects. Some model results are added to underline the practical relevance of the identified risks and obstacles.

  12. Designing an emissions trading scheme for China: An up-to-date climate policy assessment

    OpenAIRE

    Hübler, Michael; Löschel, Andreas; Voigt, Sebastian

    2014-01-01

    We assess recent Chinese climate policy proposals in a multi‐region, multi‐sector computable general equilibrium model with a Chinese carbon emissions trading scheme (ETS). When the emissions intensity per GDP in 2020 is required to be 45% lower than in 2005, the model simulations indicate that the climate policy‐ induced welfare loss in 2020, measured as the level of GDP and welfare in 2020 under climate policy relative to their level under business‐as‐usual (BAU) in the same yea...

  13. Emissions and targets of greenhouse gases not included in the Emission Trading System 2013-2020

    Energy Technology Data Exchange (ETDEWEB)

    Verdonk, M.

    2011-06-15

    This report evaluates the European Commission's (EC) proposal to calculate Member States' targets for emissions not included in the Emission Trading System (ETS) (as announced in the so-called Effort Sharing Decision). The calculation procedures and data sources proposed by the EC have been used for calculating non-ETS emission targets for the Netherlands, for the years from 2013 to 2020. In order to compare results, an alternative approach also was introduced and evaluated. In this approach more transparent data sources were used. Furthermore, the report updates the emission forecast of non-ETS emission levels in the Netherlands, for 2020, and evaluates the consequences of excluding uncertainties related to monitoring from the (updated) emission forecast. It is concluded that, for the Netherlands, the non-ETS emission caps as proposed by the EC would result in an emission cap of 105 Mt CO2 equivalent by 2020. This is higher than in the alternative approach, which would result in a cap of 103 Mt CO2 equivalents. The difference is explained by the different data sources that were used. A drawback of the data sources used in the EC proposal is the lack of transparency of part of the data, which resulted in an additional uncertainty as not all issues could be verified. However, other Member States may not have similar data sources available, in case the EC decides to adopt the alternative approach. The calculated emission caps are to be considered as estimates based on the most recent (but sometimes uncertain) statistics. The EC will determine the definite caps by the end of 2012. Based on a 2010 forecast, and including both an updated division of emissions into ETS and non-ETS emissions and a revised methodology for calculating nitrous oxide emissions, we estimate that non-ETS emissions in the Netherlands would be 104 Mt CO2 equivalents by 2020, with an uncertainty range of between 96 and 112 Mt CO2 equivalents. It is our conclusion that non-ETS emission

  14. Emissions trading with offset markets and free quota allocations

    Energy Technology Data Exchange (ETDEWEB)

    Rosendahl, Knut Einar; Strand, Jon

    2012-07-01

    We study interactions between a 'policy bloc's' emissions quota market and an offset market where emissions offsets can be purchased from a non-policy 'fringe' of countries (such as for the CDM under the Kyoto Protocol). Policy-bloc firms are assumed to benefit from free quota allocations that are updated according to either past emissions or past outputs. We show that both overall abatement, and the allocation of given abatement between the policy bloc and the fringe, tend to be inefficient. When the policy-bloc quota market and offset markets are fully integrated (and firms buy offsets directly from the fringe), and all quotas and offsets must be traded at a single price, it is optimal for the policy bloc to either not constrain the offset market whatsoever, or to ban offsets completely. The former (latter) case occurs when free allocation of quotas is not too generous (very generous), and the offset market can profitably deliver large (only a small) quota amounts. Governments of policy countries would however instead prefer to buy offsets directly from the fringe at a price below the policy-bloc quota price. The offset price will then be below the marginal damage cost of emissions, and the quota price in the policy bloc above marginal damage cost. This solution is also inefficient as the policy bloc (acting as a monopsonist) purchases too few offsets from the fringe.(Author)

  15. Understanding the business implications of emissions trading : a practical look at EPCOR`s experience

    Energy Technology Data Exchange (ETDEWEB)

    Nodelman, J. [EPCOR, Edmonton, AB (Canada)

    1999-05-01

    An historical overview of the concept of trading carbon dioxide emissions was given, examining the evolution of environmental issues in general and of the climate change issue, and the typical corporate response to GHG emissions control in particular. Mention is made of the fact that while industry in general embraces the idea of trading as the most viable option, there are many who still dispute the scientific evidence. Although the Kyoto Protocol is recognized as a turning point, the challenge of defining the form carbon credit is to take is still largely a matter of debate, as are the processes for baseline identification, verification and registration. Value versus price and cost are still worrisome issues, as are credit ownership, the very high expectations regarding credit pricing, and the management of these expectations. EPCOR`s own expectations, and approach to the problem are described. Lessons learned from early programs such as the Voluntary Challenge Registry program are also described. 3 figs.

  16. Emissions trading and green investments in Russia

    International Nuclear Information System (INIS)

    Moe, A.; Tangen, K.; Berdin, V.; Pluzhnikov, O.

    2003-01-01

    In simple terms a Green Investment Scheme entails connecting revenues from emissions trading to investments in environmental activities in Russia. This article presents insights derived from an international project on the GIS, focusing on issues that must be addressed if the concept is to become operational, on the background of the domestic, as well as international interests connected to a GIS. GIS is a worthwhile concept with the potential to bring real environmental benefits and meet profound concerns from several of the key actors in the Kyoto regime. However, establishing a well-functioning GIS means removing many of the current barriers that hold back investments in Russia. At the time of writing, Russia has still not decided whether it will ratify Kyoto Protocol. GIS illustrates that there will be substantial benefits for Russia from ratifying the Kyoto Protocol, which is a prerequisite for its entering into force. (Author)

  17. Inequalities in Global Trade: A Cross-Country Comparison of Trade Network Position, Economic Wealth, Pollution and Mortality

    Science.gov (United States)

    Prell, Christina; Sun, Laixiang; Feng, Kuishuang; Myroniuk, Tyler W.

    2015-01-01

    In this paper we investigate how structural patterns of international trade give rise to emissions inequalities across countries, and how such inequality in turn impact countries’ mortality rates. We employ Multi-regional Input-Output analysis to distinguish between sulfur-dioxide (SO2) emissions produced within a country’s boarders (production-based emissions) and emissions triggered by consumption in other countries (consumption-based emissions). We use social network analysis to capture countries’ level of integration within the global trade network. We then apply the Prais-Winsten panel estimation technique to a panel data set across 172 countries over 20 years (1990–2010) to estimate the relationships between countries’ level of integration and SO2 emissions, and the impact of trade integration and SO2 emission on mortality rates. Our findings suggest a positive, (log-) linear relationship between a country’s level of integration and both kinds of emissions. In addition, although more integrated countries are mainly responsible for both forms of emissions, our findings indicate that they also tend to experience lower mortality rates. Our approach offers a unique combination of social network analysis with multiregional input-output analysis, which better operationalizes intuitive concepts about global trade and trade structure. PMID:26642202

  18. Environmental and economic benefits resulting from citizens' participation in CO2 emissions trading: An efficient alternative solution to the voluntary compensation of CO2 emissions

    International Nuclear Information System (INIS)

    Rousse, Olivier

    2008-01-01

    Over the last few months in the emerging and lucrative carbon project market, a growing number of organizations have proposed to offset citizens' greenhouse gas emissions. The target of these carbon-offset initiatives is to satisfy the increasing demand of individuals wishing to take part in the fight against climate change. In this paper, we review and criticize these carbon-offsetting programs in general terms. We then propose an alternative that, in our opinion, should prove to be a better solution for citizens who are willing to pay for protecting the environment. This alternative is to organize citizens' participation in carbon emissions trading on a large scale in order to purchase and retire (destroy) CO 2 permits. To do so, a benevolent Regulator or non-governmental organization must correct certain CO 2 emissions market failures; this particularly concerns the high transaction costs, which represent an entry barrier and prevent citizens from purchasing and withholding permits. Based on theoretical findings, we demonstrate that implementing citizens' participation in emissions trading is an economically efficient and a morally preferable option. (author)

  19. Linking environment-productivity trade-offs and correlated uncertainties: Greenhouse gas emissions and crop productivity in paddy rice production systems

    International Nuclear Information System (INIS)

    Hayashi, Kiyotada; Nagumo, Yoshifumi; Domoto, Akiko

    2016-01-01

    In comparative life cycle assessments of agricultural production systems, analyses of both the trade-offs between environmental impacts and crop productivity and of the uncertainties specific to agriculture such as fluctuations in greenhouse gas (GHG) emissions and crop yields are crucial. However, these two issues are usually analyzed separately. In this paper, we present a framework to link trade-off and uncertainty analyses; correlated uncertainties are integrated into environment-productivity trade-off analyses. We compared three rice production systems in Japan: a system using a pelletized, nitrogen-concentrated organic fertilizer made from poultry manure using closed-air composting techniques (high-N system), a system using a conventional organic fertilizer made from poultry manure using open-air composting techniques (low-N system), and a system using a chemical compound fertilizer (conventional system). We focused on two important sources of uncertainties in paddy rice cultivation—methane emissions from paddy fields and crop yields. We found trade-offs between the conventional and high-N systems and the low-N system and the existence of positively correlated uncertainties in the conventional and high-N systems. We concluded that our framework is effective in recommending the high-N system compared with the low-N system, although the performance of the former is almost the same as the conventional system. - Highlights: • Correlated uncertainties were integrated into environment-productivity trade-offs. • Life cycle GHG emissions and crop yields were analyzed using field and survey data. • Three rice production systems using chemical or organic fertilizers were compared. • There were portfolio (insurance) effects in matured technologies. • Analysis of trade-offs and correlated uncertainties will be useful for decisions.

  20. Linking environment-productivity trade-offs and correlated uncertainties: Greenhouse gas emissions and crop productivity in paddy rice production systems

    Energy Technology Data Exchange (ETDEWEB)

    Hayashi, Kiyotada, E-mail: hayashi@affrc.go.jp [Institute for Agro-Environmental Sciences, National Agriculture and Food Research Organization, 3-1-3 Kannondai, Tsukuba, Ibaraki 305-8604 (Japan); Nagumo, Yoshifumi [Crop Research Center, Niigata Agricultural Research Institute, 857 Nagakura-machi, Nagaoka, Niigata 940-0826 (Japan); Domoto, Akiko [Mie Prefecture Agricultural Research Institute, 530 Kawakita-cho, Ureshino, Matsusaka, Mie 515-2316 (Japan)

    2016-11-15

    In comparative life cycle assessments of agricultural production systems, analyses of both the trade-offs between environmental impacts and crop productivity and of the uncertainties specific to agriculture such as fluctuations in greenhouse gas (GHG) emissions and crop yields are crucial. However, these two issues are usually analyzed separately. In this paper, we present a framework to link trade-off and uncertainty analyses; correlated uncertainties are integrated into environment-productivity trade-off analyses. We compared three rice production systems in Japan: a system using a pelletized, nitrogen-concentrated organic fertilizer made from poultry manure using closed-air composting techniques (high-N system), a system using a conventional organic fertilizer made from poultry manure using open-air composting techniques (low-N system), and a system using a chemical compound fertilizer (conventional system). We focused on two important sources of uncertainties in paddy rice cultivation—methane emissions from paddy fields and crop yields. We found trade-offs between the conventional and high-N systems and the low-N system and the existence of positively correlated uncertainties in the conventional and high-N systems. We concluded that our framework is effective in recommending the high-N system compared with the low-N system, although the performance of the former is almost the same as the conventional system. - Highlights: • Correlated uncertainties were integrated into environment-productivity trade-offs. • Life cycle GHG emissions and crop yields were analyzed using field and survey data. • Three rice production systems using chemical or organic fertilizers were compared. • There were portfolio (insurance) effects in matured technologies. • Analysis of trade-offs and correlated uncertainties will be useful for decisions.

  1. Mobil emission reduction credits for natural gas vehicle programs

    International Nuclear Information System (INIS)

    Baker, G.F.

    1993-01-01

    Since the passage of the Clean Air Act Amendments in 1990, there has been increasing interest among regulators and business interests alike in innovative, market-based strategies to air quality control. In particular, larger metropolitan areas have begun to examine marketable emission reduction credit (ERC) programs. These programs limit the total allowable emissions in a non-attainment area, allocate these emission open-quotes creditsclose quotes among sources in the region, and allow the sources to redistribute their allowances through trading. This approach provides for the most cost-effective distribution of control burdens among affected sources, taking advantage of the differences in marginal control costs. Some control measures applied to mobile sources may be significantly less expensive than those applied to stationary sources, making mobile sources an excellent candidate for inclusion in an ERC program. However, there are several potential problems involving quantification, enforcement, and credit trading issues that hinder the development of mobile source ERC programs. This paper will evaluate those obstacles and discuss how they are being addressed in a Natural Gas Vehicle (NGV) program currently under development for the Houston ozone non-attainment area. Specifically, the study will outline the credit validation (i.e., quantification) procedure, including baseline emission determination and emission testing for each NGV in the program. In addition, the study will describe the vehicle/fuel consumption tracking system, and discuss issues related to credit trading with stationary sources. Finally, observations are made concerning the applicability of mobile ERC programs for other emission control measures such as old vehicle scrappage and vehicle Inspection and Maintenance programs

  2. Sectoral roles in greenhouse gas emissions and policy implications for energy utilization and carbon emissions trading: a case study of Beijing, China.

    Science.gov (United States)

    Ge, Jianping; Lei, Yalin; Xu, Qun; Wang, Xibo

    2016-01-01

    In this study, a decomposition and emissions matrix is developed to identify the roles (giver or taker) played by the sectors in the greenhouse gas emissions for the economy of Beijing in China. Our results indicate that services were the most important emitter if we consider the total (direct and indirect) emissions. In addition to Construction, Scientific studies and technical services and Finance sectors of services were the largest takers. They have a large role in boosting greenhouse gas emissions throughout the economy of Beijing. As the basis and supporter of production activities, the electricity production and the transportation sectors were the greatest givers. More emphasis should be placed on using clean energy and carbon capture and storage technologies to reduce emissions within these sectors. Based on the roles played by these sectors in greenhouse gas emissions, some policy implications were proposed for energy utilization and carbon emissions trading.

  3. Photovoltaics in the context of carbon emission trading

    International Nuclear Information System (INIS)

    Krauter, S.C.W.

    2004-01-01

    Comprehensive CO 2 -balances within the life-cycle of PV systems have been carried out considering all CO 2 sinks and sources at the locations and under the conditions of production, of transport, installation and operation, as well as of recycling. Calculations of the possible effect on CO 2 reduction by PV energy systems may be incorrect if system borders are not set wide enough and remain on a national level. In the examples of Brazil and Germany, the effective CO 2 reductions have derived, including the variables of possible interchange scenarios for production and operation of the PV systems, as well as the carbon dioxide intensity of the local electrical grids. In the case of Brazil off-grid applications and the partial substitution of Diesel generating sets by photovoltaics are also examined. CO 2 reduction may reach 26,805 kg/kWp for the case of replacement of diesel generators in Brazil by PV based on single crystalline solar cells manufactured in Brazil In the context of carbon dioxide trading, this means a co-financing of 2.3% to 9% by the market values of carbon dioxide value of 5.00 $ US to 20.00 $ US per metric ton. While the carbon value is steadily increasing, carbon emission trading will play an important role in financing autonomous PV systems in the future. (author)

  4. Dynamic Interaction between Cap & Trade and Electricity Markets

    Science.gov (United States)

    Jeev, Kumar

    Greenhouse Gases (GHG), such as Carbon-Dioxide (CO2), which is released in the atmosphere due to anthropogenic activities like power production, are now accepted as the main culprits for global warming. The Regional Greenhouse Gas Initiative (RGGI), an initiative of the North East and Mid-Atlantic States of the United States (US) for limiting the emission of GHG, has developed a regional cap-and-trade program for CO2 emissions for power plants. Existing cap-and-trade programs in US and Europe for Greenhouse Gases have recently been plagued by over-allocation. Carbon prices recently collapsed in all these markets during the global recession. Since then, there have been significant policy changes, which have resulted in the adoption of aggressive emission cap targets by most major carbon emission markets. This is expected to make carbon emissions availability more restrictive, raising the prices of these credits. These emissions markets are expected to have a major impact on the wholesale electricity markets. Two models to study the interaction of these two markets are presented. These models assess the impact of the emissions market on wholesale electricity prices. The first model characterizes the competition between two types of power plants (coal and gas) in both the electricity and emissions markets as a dynamic game using the Cournot approximation. Under this approximation, we find that in the Nash equilibrium the plants increase their permit allocation to high-demand periods and the marginal value of each credit for a plant is identical in all periods under their optimal equilibrium strategy. The second numerical model allows us to explicitly evaluate the closed loop equilibrium of the dynamic interaction of two competitors in these markets. We find that plants often try to corner the market and push prices all the way to the price cap. Power plants derive most of their profits from these extreme price regimes. In the experiments where trading is allowed

  5. Climate policy, emissions trading and hydrogen : Results of a Mannesmann Pilotentwicklung study and options for the hydrogen community

    International Nuclear Information System (INIS)

    Geres, R.

    2002-01-01

    The use of emissions trading for the introduction of hydrogen technologies into the market was studied under the Mannesmann Pilotentwicklung. It was argued that the integration of environmental effects becomes part of the business planning on the revenue side, provided a scenario with environmental benefits like the reduction of greenhouse gas emissions in the atmosphere. New possibilities and opportunities are available for hydrogen technologies. It enables the definition of more detailed projects within the hydrogen community, considering factors such as economic, strategic, technological and political aims. The projects involve both mobile and stationary applications, and cover regional activities as well as international cooperation. Public institutions or the private sector can undertake them. As a result of the ratification of the Kyoto Protocol, an emissions trading scheme is scheduled to begin in 2005 inside the European Union. 2 refs., 2 tabs., 2 figs

  6. Targeted opportunities to address the climate-trade dilemma in China

    Science.gov (United States)

    Liu, Zhu; Davis, Steven J.; Feng, Kuishuang; Hubacek, Klaus; Liang, Sai; Anadon, Laura Diaz; Chen, Bin; Liu, Jingru; Yan, Jinyue; Guan, Dabo

    2016-02-01

    International trade has become the fastest growing driver of global carbon emissions, with large quantities of emissions embodied in exports from emerging economies. International trade with emerging economies poses a dilemma for climate and trade policy: to the extent emerging markets have comparative advantages in manufacturing, such trade is economically efficient and desirable. However, if carbon-intensive manufacturing in emerging countries such as China entails drastically more CO2 emissions than making the same product elsewhere, then trade increases global CO2 emissions. Here we show that the emissions embodied in Chinese exports, which are larger than the annual emissions of Japan or Germany, are primarily the result of China’s coal-based energy mix and the very high emissions intensity (emission per unit of economic value) in a few provinces and industry sectors. Exports from these provinces and sectors therefore represent targeted opportunities to address the climate-trade dilemma by either improving production technologies and decarbonizing the underlying energy systems or else reducing trade volumes.

  7. Carbon trading: Current schemes and future developments

    International Nuclear Information System (INIS)

    Perdan, Slobodan; Azapagic, Adisa

    2011-01-01

    This paper looks at the greenhouse gas (GHG) emissions trading schemes and examines the prospects of carbon trading. The first part of the paper gives an overview of several mandatory GHG trading schemes around the world. The second part focuses on the future trends in carbon trading. It argues that the emergence of new schemes, a gradual enlargement of the current ones, and willingness to link existing and planned schemes seem to point towards geographical, temporal and sectoral expansion of emissions trading. However, such expansion would need to overcome some considerable technical and non-technical obstacles. Linking of the current and emerging trading schemes requires not only considerable technical fixes and harmonisation of different trading systems, but also necessitates clear regulatory and policy signals, continuing political support and a more stable economic environment. Currently, the latter factors are missing. The global economic turmoil and its repercussions for the carbon market, a lack of the international deal on climate change defining the Post-Kyoto commitments, and unfavourable policy shifts in some countries, cast serious doubts on the expansion of emissions trading and indicate that carbon trading enters an uncertain period. - Highlights: → The paper provides an extensive overview of mandatory emissions trading schemes around the world. → Geographical, temporal and sectoral expansion of emissions trading are identified as future trends. → The expansion requires considerable technical fixes and harmonisation of different trading systems. → Clear policy signals, political support and a stable economic environment are needed for the expansion. → A lack of the post-Kyoto commitments and unfavourable policy shifts indicate an uncertain future for carbon trading.

  8. Trading of locomotive NO(sub x) emissions : a potential success story

    International Nuclear Information System (INIS)

    Gaines, L. L.; Biess, L. J.; Diedrich, G. K.

    2002-01-01

    New US Environmental Protection Agency regulations are forcing locomotive manufacturers and railroads to reduce pollutant emissions from locomotive operation. All new locomotives must meet strict standards when they are built, and existing locomotives must comply when they are rebuilt. Emissions can be reduced either by adjusting combustion parameters, which incurs a fuel penalty, or by turning the diesel engine off when the train is not moving and would otherwise be idling. The latter reduces fuel consumption, but requires installation of a device-such as an auxiliary power unit (APU)-to ensure that the engine can be restarted in cold weather and to supply hotel loads for the crew. Without a financial incentive, capital-short railroads will opt to achieve compliance in the least costly way. However, if they have the option of selling emissions credits from reducing emissions below regulated levels, it would be in their best interest to install additional equipment to minimize emissions. These credits could be purchased by businesses with compliance costs greater than either the cost of the credits or the fines they would have had to pay for non-compliance. The result is a financial benefit for both parties, and a net reduction in emissions, because the seller is emitting below regulated levels, and the buyer is no longer non-compliant. This paper describes a railroad as the potential seller, unable to consummate trades because of uncertainty in the regulatory environment, and estimates financial benefits and reductions in emissions and energy use that could be achieved if the barrier could be removed

  9. Reducing energy consumption and CO2 emissions by energy efficiency measures and international trading: A bottom-up modeling for the U.S. iron and steel sector

    International Nuclear Information System (INIS)

    Karali, Nihan; Xu, Tengfang; Sathaye, Jayant

    2014-01-01

    Highlights: • Use ISEEM to evaluate energy and emission reduction in U.S. Iron and Steel sector. • ISEEM is a new bottom-up optimization model for industry sector energy planning. • Energy and emission reduction includes efficiency measure and international trading. • International trading includes commodity and carbon among U.S., China and India. • Project annual energy use, CO 2 emissions, production, and costs from 2010 to 2050. - Abstract: Using the ISEEM modeling framework, we analyzed the roles of energy efficiency measures, steel commodity and international carbon trading in achieving specific CO 2 emission reduction targets in the U.S iron and steel sector from 2010 to 2050. We modeled how steel demand is balanced under three alternative emission reduction scenarios designed to include national energy efficiency measures, commodity trading, and international carbon trading as key instruments to meet a particular emission restriction target in the U.S. iron and steel sector; and how production, process structure, energy supply, and system costs change with those scenarios. The results advance our understanding of long-term impacts of different energy policy options designed to reduce energy consumption and CO 2 emissions for U.S. iron and steel sector, and generate insight of policy implications for the sector’s environmentally and economically sustainable development. The alternative scenarios associated with 20% emission-reduction target are projected to result in approximately 11–19% annual energy reduction in the medium term (i.e., 2030) and 9–20% annual energy reduction in the long term (i.e., 2050) compared to the Base scenario

  10. Presentation of the information report on the greenhouse gas emission trading scheme

    International Nuclear Information System (INIS)

    2010-01-01

    This document reports the hearing during which the results of an investigation on European Union Emission Trading Scheme (ETS) have been commented. The author of this investigation briefly describes the scheme, how it has been implemented. He outlines some of its weaknesses and discusses how it could be improved, notably by extending it to different sectors, for example the air transport sector. He also outlines how this European Union scheme could be an example for the rest of the world. The author and the Commission members then discuss several aspects: the origins of CO 2 emissions and how to take them into account, the international negotiations and the positions of China or India, the taxing possibilities, and the fact that the nuclear energy does not award credits

  11. Trading scheme 'key' to low-carbon economy

    International Nuclear Information System (INIS)

    2006-01-01

    Federal Opposition Leader Kim Beazley has emphasised the importance of getting the economics of environmental policy right by introducing market-based mechanisms for pricing emissions. 'Market-based mechanisms such as emissions trading are central to moving to a low-carbon economy,' he said in his latest blueprint. 'A functioning carbon market will deliver a price signal, so there is a long-term incentive to cut emissions further, and a mechanism for trading, so that energy can be allocated efficiently in the economy. It will also encourage greater private investment in clean energy technology.' Mr Beazley said the new market would also reward the many companies who were already adapting to a carbon-constrained world. 'This includes those global companies in Australia that already operate in emissions trading markets overseas. An effective price signal for carbon in Australia will allow these companies to benefit directly from their good corporate citizenship and long-term vision.' Mr Beazley has committed a federal Labor government to work with state governments and business to establish the national trading scheme. He also criticised the Federal Government for refusing to ratify the Kyoto Protocol, which he argued excluded Australian businesses from participating in the emerging global carbon trade. This made it harder for businesses to break into the market for cleaner production technologies overseas. While again admitting Kyoto was not perfect, Mr Beazley said ratification would see Australia part of what would potentially be 'the biggest market in the world by 2020'. He said the recent Asia Pacific Climate Change Pact was a positive step but was not an alternative to Kyoto. 'Above all, it has no economic mechanisms to drive further change. 'Without ratifying Kyoto some of our businesses are missing out on effective participation in international schemes that offer substantial financial rewards for greenhouse gas reductions. 'By ratifying Kyoto and adopting

  12. Greenhouse gas emissions trading among Pacific Rim countries: An analysis of policies to bring developing countries to the bargaining table

    International Nuclear Information System (INIS)

    Rose, Adam; Wei Dan

    2008-01-01

    This paper examines the aggregate net costs and individual country cost savings of greenhouse gas emissions trading among Pacific Rim countries. We propose emission permit allocation rules designed to entice developing countries to participate. Absence of developing country involvement has served as an excuse for the lack by participation by the United States in the first compliance period of the Kyoto Protocol and may serve as a disincentive to even more countries in subsequent periods. Our analysis specifies permit allocation rules that could result in no net costs, and even cost-savings, to developing countries for their involvement in the emissions trading market, while at the same time providing extensive benefits to industrialized countries through access to lower-cost mitigation alternatives

  13. 40 CFR 90.206 - Trading.

    Science.gov (United States)

    2010-07-01

    ... 40 Protection of Environment 20 2010-07-01 2010-07-01 false Trading. 90.206 Section 90.206... Trading Provisions § 90.206 Trading. (a) An engine manufacturer may exchange emission credits with other engine manufacturers in trading, subject to the trading restriction specified in § 90.207(c)(2). (b...

  14. International Environmental Agreements: Emissions Trade, Safety Valves and Escape Clauses

    International Nuclear Information System (INIS)

    Karp, Larry; Zhao, Jinhua

    2010-01-01

    We explain how the structure of multi-national or multi-regional environmental agreements affect their chance of success. Trade in emissions permits has ambiguous and in some cases surprising effects on both the equilibrium level of abatement, and on the ability to persuade nations or regions to participate in environmental agreements. An escape clause policy and a safety valve policy have essentially the same properties when membership in environmental agreement is pre-determined, but they create markedly different effects on the incentives to join such an agreement. The two policies lead to a qualitative difference in the leverage that a potential member of the agreement exercises on other members

  15. Tradeable CO2 emission permits. A quantitative analysis of a TEP system between Annex I countries

    International Nuclear Information System (INIS)

    Koutstaal, P.R.; Kram, T.; Van Rooijen, S.N.M.

    1997-11-01

    Tradeable emission permits can be a cost-effective way to achieve emission reductions between countries or firms. In this study, the role of trading CO 2 emission permits between the Annex I countries of the FCCC is analysed. It is assumed that only countries are allowed to trade and that there is a perfect market without transaction costs and strategic behaviour. For several cases, the consequences for abatement costs, before and after trade, the volume of permits traded and emissions per capita are studied. Moreover, the gains from trade are determined. This study was undertaken before the Kyoto conference, therefore as a starting point for the different cases it was assumed that all countries should reduce their emissions with 10%. The cases studied are: a flat rate of 10% for each country; the differentiated EU distribution combined with a 10% reduction for the other OECD countries; and the so-called Triptych approach applied to all OECD countries. Two trading systems are considered, one covering only the OECD countries and one which also covers Middle and Eastern European countries (in a simplified way). Furthermore, two extreme cases are studied for the OECD trading scheme: equal costs (after trade) per unit of GNP and equal emission per capita (before trade). Tradeable emission permits will considerably reduce total costs compared with no trade by about 50%. The EU will considerably reduce total costs compared with no trade by about 50%. The EU will be a net exporter of permits in an OECD trading scheme (without Middle and Eastern Europe), mainly because the low costs possibilities for reduction of CO 2 emissions in Germany and the United Kingdom. 13 refs

  16. Adoption of Emissions Abating Technologies by U.S. Electricity Producing Firms Under the SO2 Emission Allowance Market

    Science.gov (United States)

    Creamer, Gregorio Bernardo

    The objective of this research is to determine the adaptation strategies that coal-based, electricity producing firms in the United States utilize to comply with the emission control regulations imposed by the SO2 Emissions Allowance Market created by the Clean Air Act Amendment of 1990, and the effect of market conditions on the decision making process. In particular, I take into consideration (1) the existence of carbon contracts for the provision of coal that may a affect coal prices at the plant level, and (2) local and geographical conditions, as well as political arrangements that may encourage firms to adopt strategies that appear socially less efficient. As the electricity producing sector is a regulated sector, firms do not necessarily behave in a way that maximizes the welfare of society when reacting to environmental regulations. In other words, profit maximization actions taken by the firm do not necessarily translate into utility maximization for society. Therefore, the environmental regulator has to direct firms into adopting strategies that are socially efficient, i.e., that maximize utility. The SO 2 permit market is an instrument that allows each firm to reduce marginal emissions abatement costs according to their own production conditions and abatement costs. Companies will be driven to opt for a cost-minimizing emissions abatement strategy or a combination of abatement strategies when adapting to new environmental regulations or markets. Firms may adopt one or more of the following strategies to reduce abatement costs while meeting the emission constraints imposed by the SO2 Emissions Allowance Market: (1) continue with business as usual on the production site while buying SO2 permits to comply with environmental regulations, (2) switch to higher quality, lower sulfur coal inputs that will generate less SO2 emissions, or (3) adopting new emissions abating technologies. A utility optimization condition is that the marginal value of each input

  17. Implementing SO2 Emissions in China

    International Nuclear Information System (INIS)

    Schreifels, J.; Yang, J.

    2003-01-01

    Over the past 10 years, the Chinese State Environmental Protection Administration (SEPA) has actively investigated the potential to use emission trading to reduce sulphur dioxide (SO2) emissions from electricity generators and industrial sources. In 1999, SEPA partnered with the U.S. Environmental Protection Agency (U.S. EPA) to cooperate on a study to assess the feasibility of implementing SO2 emission trading in China. SEPA has also pursued emission trading pilot projects in several cities and provinces. The authors, using information from the feasibility study and pilot projects, introduce the circumstances necessary for SO2 emission trading in China, outline the experience to date, and analyse implementation opportunities and barriers in China. The contents of the paper are: (1) SO2 emission control policies in China; (2) institutional requirements and the basis for introducing SO2 emission trading in China; (3) case studies of emission trading in China; (4) opportunities and barriers to implementing emission trading in China; (5) recommendations to transition from pilot projects to a nationwide SO2 emission trading program; and (6) conclusions and suggestions

  18. A competitive carbon emissions scheme with hybrid fiscal incentives: The evidence from a taxi industry

    International Nuclear Information System (INIS)

    Liu, Yang; Han, Liyan; Yin, Ziqiao; Luo, Kongyi

    2017-01-01

    As two major approaches to reduce carbon emissions, command-and-control instruments and market-based carbon trading systems have their own weaknesses. Our paper first proposes a type of endogenous equilibrium methodology to dynamically derive the industrial carbon emissions standards. At the equilibrium, the sum of all carbon assets and liabilities is zero in the considered industry. Moreover, the standards fall over time with low-carbon technological advance. Most importantly, combining Pigou's and Coase's ideas, we construct a fiscal instrument accounting for both carbon taxes and allowances based on the dynamically improved emissions standards and carbon trading prices. This “No revenue for government” method implements a self-operated ecology for carbon trading market. Finally, considering the “Waterloo” recession of carbon prices, we introduce an adjustment factor into the model, which generates a negative-feedback mechanism with carbon prices. To support our idea, we present the application to Beijing taxi industry in detail and raise relative policy implications based on the evidence. - Highlights: • Dynamic endogenous equilibrium standards for carbon emissions. • A public policy oriented market mechanism combining command-and-control instruments and carbon trading. • Hybrid incentives to emission reduction combining carbon taxes and allowances. • The adjustment coefficient generating a negative feedback mechanism with carbon prices.

  19. Impacts of the abolition of NOx emission trade; Effecten van de afschaffing van NOx- emissiehandel

    Energy Technology Data Exchange (ETDEWEB)

    Kroon, P [ECN Beleidsstudies, Petten (Netherlands)

    2012-09-15

    The consequences of abolishing the NOx emission trade have been analyzed for the installations that are covered by BEMS legislation (Dutch decree on emission limits for medium-sized combustion plants). The following aspects have been analyzed: What are the enforcement costs if these installations need to comply with BEMS requirements as of 2014?; How are these costs distributed across the various sectors and in particular for the sectors of onshore/offshore gas and oil extraction, greenhouse horticulture and hospitals?; To what extent can costs be lowered by allowing a 2-,3- or 5-year delay of the implementation date for existing installations in BEMS? To answer the above questions, data were used from the NEA (Netherlands Emission Authority) at sector level. Model calculations were conducted to determine the costs and effects [Dutch] De gevolgen van de afschaffing van NOx-emissiehandel zijn geanalyseerd voor het installatiepark dat terugvalt op BEMS-wetgeving (Besluit emissie-eisen middelgrote stookinstallaties). De volgende zaken zijn geanalyseerd: Wat zijn de nalevingskosten indien vanaf 2014 deze installaties aan de BEMS-eisen moeten voldoen?; Hoe zijn deze kosten verdeeld over de verschillende sectoren en in het bijzonder voor de sectoren offshore/onshore gas- en oliewinning, de glastuinbouw en ziekenhuizen?; In hoeverre zijn de kosten te verlagen door 2, 3 of 5 jaar uitstel te geven ten opzichte van de implementatiedatum voor bestaande installaties in BEMS? Voor het beantwoorden van de bovenstaande vragen is gebruik gemaakt van gegevens van de NEa (Nederlandse Emissie autoriteit) op sectorniveau. Met modelberekeningen zijn hiermee kosten en effecten bepaald.

  20. Climate policy and trade policy - The French proposal for a EU-wide border tax adjustment for CO2 emissions

    International Nuclear Information System (INIS)

    Damian, M.; Abbasn, M.

    2007-01-01

    The paper examines the French proposal to establish a EU-wide border tax adjustment for CO 2 emissions. The tax seeks to offset competitive distortions toward European industries which incur the cost of the Kyoto Protocol and to prompt European competitors to join the Kyoto Protocol. So far, the debate has chiefly focused on the compatibility of such a border tax adjustment with the rules of the multilateral trading system of the World Trade Organization. Without auguring how a dispute would eventually be settled within the WTO frame-work, the paper argues that the implementation of a border tax adjustment is not as much an issue of technical feasibility or compatibility with the multilateral trading system, as a matter of collective determination to drastically reduce greenhouse gas emissions. The French proposal is a yardstick for climate policy after the expiration of the Kyoto Protocol in 2012. The paper looks in more details into the core directions of pending negotiations. (authors)

  1. European Union Emissions Trading Scheme (EU-ETS) Futures Liquidity Effects: Evidence from the European Energy Exchange (EEX)

    OpenAIRE

    Ibikunle, Gbenga; Gregoriou, Andros

    2011-01-01

    We examine liquidity effects after the onset of trading in phase II of the EU-ETS for European Union Allowance (EUA) futures contracts. We obtain evidence of long-term improvement in liquidity of the EEX EUA December 2008 futures contract after the commencement of trading in phase II. Our results suggest the application of a new regime of trading rules in Phase II led to the improvements in liquidity.

  2. A primer for trading greenhouse gas reductions from landfills

    International Nuclear Information System (INIS)

    2000-06-01

    This introductory level primer on domestic greenhouse gas emissions trading addresses the challenge of dealing with landfill gas emissions of carbon dioxide (CO 2 ) and methane (CH 4 ). It describes the first major emissions trading projects in Canada, the Pilot Emission Reduction Trading (PERT) and the Greenhouse Gas Emission Reduction Trading (GERT) pilot projects which calculate and document the GHG emission reductions that are available from landfill sites. PERT initially focused on nitrogen oxides, volatile organic compounds, carbon monoxide, sulphur dioxide and carbon dioxide. PERT uses the Clean Air Emission Reduction Registry for its emissions trading. Canada completed negotiations of the Kyoto Protocol in December 1997 along with 160 other countries. Upon ratification, Canada will commit to reducing 6 greenhouse gases by 6 per cent below 1990 levels in the period 2008 to 2012. Canada has recognized that it must reduce domestic greenhouse gas emissions to slow global warming which leads to climate change. It has been shown that the capture and destruction of landfill gas can profoundly contribute to meeting the target. One tool that can be used to help meet the objective of reducing GHG emissions is domestic GHG emission trading, or carbon trading, as a result of landfill gas capture and flaring. Landfill gas is generally composed of equal parts of carbon dioxide and methane with some other trace emissions. Accounting for quantities of greenhouse gas emissions is done in equivalent tonnes of carbon dioxide where one tonne of methane reduction is equivalent to 21 tonnes of carbon dioxide in terms of global warming potential. Organics in landfills which lead to the generation of methane are considered to be coming from renewable biomass, therefore, the collection and combustion of landfill gas is also considered to reduce GHG emissions from landfills by 100 per cent on a global basis. Destroying landfill gases can also reduce volatile organic compounds, which

  3. Carbon trading and carbon taxation: how to consider biotic sources and sinks

    International Nuclear Information System (INIS)

    Madlener, Reinhard; Schlamadinger, Bernhard

    1999-01-01

    The Kyoto Protocol (KP) to the UNFCCC includes land-use change and forestry in the carbon accounting process, limited to afforestation, reforestation and deforestation since 1990, and explicitly provides for the option of using a variety of flexibility mechanisms to meet the greenhouse gas (GHG) reduction targets stipulated in a more cost-efficient manner. Domestically, different countries might adopt different approaches to achieve their emission reduction objectives, such as carbon trading or carbon taxation, and it is not clear to date what the implications for bioenergy use, forestry, and land-use change can be expected to be. With respect to national GHG emissions trading, the main issues studied in this paper are: Should trading of fossil fuel emissions allowances be coupled with trading of biotic credits and debits? Should credits for carbon sequestration in forests be auctioned or grandfathered? Should there be a distinction between a carbon permit issued for an additional biotic sink and those issued for fossil fuel carbon emissions? Is there a difference for biotic carbon sinks and sources between one-time permits and permits that allow a continued release of GHG over some pre-specified time? Should permits be issued only for the carbon-stock changes that count under the KP? With respect to national carbon taxation schemes, two questions are investigated: Should a tax credit be given for afforestation/reforestation (and a tax debit for deforestation)? Should tax credits also be given for projects that sequester carbon but do not count under the KP (such as forest protection rather than forest management)? For both schemes a crucial point is that by the formulation chosen in the KP two different classes of forest are created (i.e. those counted and those not counted under the KP), so that the implications for land prices might be significant. From a conceptual point of view this paper addresses the above-mentioned questions and contrasts some of the major

  4. Emissions trading in the transport sector. Feasible approach for an upstream model. Executive summary; Emissionshandel im Verkehr. Ansaetze fuer einen moeglichen Up-Stream-Handel im Verkehr. Endbericht

    Energy Technology Data Exchange (ETDEWEB)

    Bertenrath, Roman; Liebig, Lars [Koeln Univ. (Germany). Finanzwissenschaftliches Forschungsinstitut; Betz, Regina; Rogge, Karoline; Schade, Wolfgang [Fraunhofer-Institut fuer Systemtechnik und Innovationsforschung (ISI), Karlsruhe (Germany); Duennebeil, Frank; Lambrecht, Udo [ifeu-Institut fuer Energie- und Umweltforschung GmbH, Heidelberg (Germany); Bergmann, Heidi

    2005-11-15

    In July, 2003, FiFo Koeln (Cologne Centre for Public Economics) was mandated by the German Federal Environmental Agency (UBA) with the examination of the UFOPLAN scheme 'Emissions Trading System for the Transport Sector - Development of a possible Trading Approach'. The main task of this study was the development of a concrete emissions trading approach for the transport sector, which triggers off a compulsory holding of emissions certificates at the beginning of the energy supply chain (upstream approach). The main focus was rather put on the practical options of the implementation of an upstream approach in the transport sector and its specific problems. The transaction costs of a trading system in the transport sector had to be kept at a minimum level. The upsteam approach discussed in his study seems to be more adequate to include further carbon dioxide emissions of other sectors than the EU downstream model. This can mainly be attributed to the amount and nature of the respective transaction costs. In Germany allocative failure in fuel taxation between diesel and petrol can be diminished regardless of the prices for CO{sub 2}. Emissions trading therefore leads to structural changes. An upstream approach has only indirect effects on the motorcar industry and refiners. Therefore, technical CO{sub 2} reduction can primarily be realised via an increased consumer demand for ore fuel-efficient vehicles, new propulsion technology or alternative fuels based on renewable energies. In the case of an open trading system the amount of transport emissions was estimated that actually could be reduced to be relatively small. The authors of the contribution under consideration are not convinced that the full potential of existing adaptation options in the transport sector can be tapped by an open emissions trading. The transport sector will cope with additional CO{sub 2} costs without tapping the potential of relatively cheap adaptation options. Also at closed

  5. Investigations in relation with prevention of global warming in fiscal 2000. Structuring of strategies related to emission trading; 2000 nendo chikyu ondanka boshi kanren chosa hokokusho. Haishutsuryo torihiki ni kakawaru senryaku kochiku

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2001-03-01

    Investigations in relation with the greenhouse effect gas emission trading system have been performed on introduction and discussion of the system in major countries in order to discuss basically the emission trading system in Japan. The EU has been advancing the discussion with the introduction thereof to start in 2005 kept in mind, whereas the points of issue for the system designing include the followings: what roles should be taken by the EU and membership countries, consistency between the membership countries with regard to the participating organizations, and the scheme for initial allocation. In Denmark, the emission trading system has been introduced in January 2001 between the electric power companies. The objects of the allocation are only the eight power generation companies, making the management of emission right retaining quantities by the government simple. The United Kingdom has a schedule of introducing the emission trading system in April 2001, but the trading itself will start in 2002. Management of the trading scheme, and acceptability of banking after 2008 are the main points of issue. In the fundamental discussions on designing the emission trading system in Japan, discussion items were extracted, and the points of issue were put into order. (NEDO)

  6. Global warming agreements, international trade and energy/carbon embodiments: an input-output approach to the Italian case

    International Nuclear Information System (INIS)

    Mongelli, I.; Tassielli, G.; Notarnicola, B.

    2006-01-01

    In the Kyoto Protocol the absence of Green House Gases (GHGs) commitments of developing countries (non-Annex I) and the more flexible terms of implementation which are allowed to countries shifting toward a market economy (transition economies) naturally lead to the absence or to less constraining national measures and policies of reduction of the GHGs emissions which, in turn, may determine a comparative advantage in the production of the highest energy/carbon intensive commodities for these countries. These arguments are valid also considering the future implementation of the European Emission Allowance Trading Scheme (EATS). Thus, developing countries may become a haven for the production of not environmental-friendly commodities; in this case, the so-called Pollution Haven Hypothesis, stating that due to freer international trade the comparative advantage may change the economic structure and consequently the trade patterns of the countries linked by trade relationships, could occur. This would lead to the increase of the transfers of energy and carbon embodied in traded commodities from developing countries and transition economies toward Kyoto or EATS constrained countries. The aim of this paper is to verify if for Italy, as a Kyoto and EATS complying country, evidence of a change in the trade patterns, occurred on the basis of the Pollution Haven Hypothesis, does exist and to estimate the magnitude of the under-estimation of the carbon actually emitted: the carbon leakage. The Input-Output model has been used to calculate the intensities of energy consumption and the related Green House Gases emission, for each Italian economic sector

  7. Transfer of emissions in emissions trading. Allotment of emission certificates when constructing new plants to replace older ones; Die ''Uebertragungsregelung'' im Emissionshandel. Zuteilung von Emissionsberechtigungen bei der Errichtung von Neuanlagen als Ersatzanlagen

    Energy Technology Data Exchange (ETDEWEB)

    Greinacher, D.; Ehrmann, M. [Kanzlei KERMEL und SCHOLTKA Rechtsanwaelte, Berlin (Germany)

    2006-12-15

    Modernisation of power plants, low-CO2 fuels and renewables will help to reduce CO2 emissions in Germany. The primary tool of climate protection, i.e. emission trading, should provide boundary conditions for inviting investments and ensuring secure planning. To ensure this, it will be possible to transfer emission certificates to a new, state-of-the-art plant when disconnecting an older plant. Details are presented here. (orig.)

  8. Input-output analysis of CO2 emissions embodied in trade. The effects of spatial aggregation

    International Nuclear Information System (INIS)

    Su, Bin; Ang, B.W.

    2010-01-01

    Energy-related CO 2 emissions embodied in international trade have been widely studied by researchers using the environmental input-output analysis framework. It is well known that both sector aggregation and spatial aggregation affect the results obtained in such studies. With regard to the latter, past studies are often conducted at the national level irrespective of country or economy size. For a large economy with the needed data, studies may be conducted at different levels of spatial aggregation. We examine this problem analytically by extending the work of Su et al. ([Su, B., Huang, H.C., Ang, B.W., Zhou, P., 2010. Input-output analysis of CO 2 emissions embodied in trade: The effects of sector aggregation. Energy Economics 32 (1), 166-175.]) on sector aggregation. We present a numerical example using the data of China and by dividing the country into eight regions. It is found that the results are highly dependent on spatial aggregation. Our study shows that for a large country like China it is meaningful to look into the effect of spatial aggregation. (author)

  9. Living with a carbon allowance: The experiences of Carbon Rationing Action Groups and implications for policy

    International Nuclear Information System (INIS)

    Howell, Rachel A.

    2012-01-01

    Carbon Rationing Action Groups (CRAGs) are grassroots voluntary groups of citizens concerned about climate change, who set themselves a carbon allowance each year and provide support to members seeking to reduce their direct carbon emissions from household energy use and personal transport. Some groups have a financial penalty for carbon emitted in excess of the ration, and systems whereby under-emitters are rewarded using the monies collected from over-emitters. CRAGs therefore operate the nearest scheme in existence to the proposed policy of Personal Carbon Trading (PCT). This paper reports the findings of a study of the opinions and experiences of individuals involved in CRAGs (‘CRAGgers’). In general, interviewees have made significant behavioural changes and emissions reductions, but many would be unwilling to sell spare carbon allowances within a national PCT system. The choices made by CRAGgers with respect to the design and operation of their ‘carbon accounting’, their experiences of reducing fossil fuel energy use, and their views on personal carbon trading at CRAG and national level are discussed. Some possible implications for PCT and other policies are considered, as well as the limitations of CRAGs in informing an understanding of the potential impacts and operation of PCT. - Highlights: ► Reports opinions and experiences of members of Carbon Rationing Action Groups (CRAGs). ► Many interviewees have made significant reductions to their carbon footprint. ► CRAGs offer insights into individuals' experiences of living with a carbon allowance. ► Most CRAGs involve highly motivated individuals and avoid trading. ► They nonetheless offer some insights into Personal Carbon Trading and other policies.

  10. An evaluation of possible EU air transport emissions trading scheme allocation methods

    International Nuclear Information System (INIS)

    Morrell, Peter

    2007-01-01

    The European Commission has been requested by member states to study the incorporation of air transport into their existing emissions trading scheme (ETS). Only CO 2 is to be included, at least initially. This paper focuses on the method of allocation of emissions permits in the EU context. It has been assumed here that the EU ETS will be applied only to intra-EU flights and that airlines will be the entities selected for implementation. Three UK airlines were selected to evaluate three main types of allocation: grandfathering, auctioning and benchmarking. The airlines were representative of the three major airline business models: network, low-cost carrier and charter/leisure. Based on 2003/2004 aircraft/engine type and operating data, the per passenger impact of each allocation option was analysed for each airline. A new benchmarking approach is proposed that takes into account both the landing and take-off (LTO) cycle and per kilometre emissions: this avoids penalising shorter sector operators and focuses on the damage caused by aircraft and their engines and not on passengers. (author)

  11. 40 CFR 91.206 - Trading.

    Science.gov (United States)

    2010-07-01

    ... 40 Protection of Environment 20 2010-07-01 2010-07-01 false Trading. 91.206 Section 91.206... EMISSIONS FROM MARINE SPARK-IGNITION ENGINES Averaging, Banking, and Trading Provisions § 91.206 Trading. (a... manufacturers in trading. These credits must be used in the same averaging set as generated. (b) Credits for...

  12. 40 CFR 91.1306 - Trading.

    Science.gov (United States)

    2010-07-01

    ... 40 Protection of Environment 20 2010-07-01 2010-07-01 false Trading. 91.1306 Section 91.1306... EMISSIONS FROM MARINE SPARK-IGNITION ENGINES In-Use Credit Program for New Marine Engines § 91.1306 Trading... engine manufacturers through trading. (b) In-use credits for trading can be obtained from credits banked...

  13. Investment Strategy of Emission-Reduction Technology in a Supply Chain

    Directory of Open Access Journals (Sweden)

    Gao Xiang Lou

    2015-08-01

    Full Text Available Greenhouse gas emissions have serious impacts on the natural environment. Therefore, the restrictions imposed on carbon emission force enterprises to take carbon emission into consideration when making production decisions. In this paper, in the context of allowing emission trading and investment of emission reduction technology, models were presented for a two-stage supply chain to analyze the optimal investment and pricing decisions. The results indicate that manufacturer’s endurance capacity of reduction difficulty is higher in the cooperation model than in the Stackelberg game model, and that perfect coordination of supply chains can be realized by a revenue sharing contract. From the perspective of a consumer, low-carbon products mean higher price, so that subsidies or tax exemptions should be provided to keep low prices. Meanwhile, the government can promote investment in emission-reduction technologies and achieve its emission reduction targets by controlling emission trading price, strengthening emission reduction publicity and providing technology investment subsidies.

  14. CO2 price dynamics. The implications of EU emissions trading for electricity prices and operations

    International Nuclear Information System (INIS)

    Sijm, J.P.M.; Bakker, S.J.A.; Harmsen, H.W.; Lise, W.; Chen, Y.

    2006-07-01

    The experience with CO 2 trading and allowances prices in the last year is reviewed, with a focus on the factors influencing the price of electricity in EU countries. A statistical analysis investigates the relationship between the large increases in electricity prices experienced in 2005 and their relationship to CO 2 prices. In addition, a market simulation analysis using the COMPETES model is performed to assess the extent to which profit-maximizing generators, some of which possess market power, might pass on the opportunity cost of allowances to consumers. The paper concludes by reviewing possible options for policy makers to address the possible adverse implications of price increases caused by CO/sub 2/ trading.

  15. CO2-emission trading and green markets for renewable electricity. Wilmar - deliverable 4.1

    DEFF Research Database (Denmark)

    Azuma-Dicke, N.; Morthorst, Poul Erik; Ravn, H.F.

    2004-01-01

    This report is Deliverable 4.1 of the EU project “Wind Power Integration in Liberalised Electricity Markets” (WILMAR) and describes the application of two policy instruments, Tradable Emissions Permits (TEP’s) and Tradable Green Certificates (TGC’s) forelectricity produced from renewable energy...... sources in the European Union and the implications for implementation in the Wilmar model. The introduction of a common emission-trading system in the EU is expected to have an upward effect on the spot pricesat the electricity market. The variations of the spot price imply that some types of power...... generation may change the situation from earning money to losing money despite the increasing spot price. Heavy restrictions on emissions penalise thefossil-fuelled technologies significantly, and the associated increase in the spot price need not compensate for this. Therefore, a market of TEP’s is expected...

  16. The Impact of Emissions Trading on the Price of Electricity in Nord Pool : Market Power and Price Determination in the Nordic Electricity Market

    OpenAIRE

    Oranen, Anna

    2006-01-01

    The objective of this thesis is to find out how dominant firms in a liberalised electricity market will react when they face an increase in the level of costs due to emissions trading, and how this will effect the price of electricity. The Nordic electricity market is chosen as the setting in which to examine the question, since recent studies on the subject suggest that interaction between electricity markets and emissions trading is very much dependent on conditions specific to each market ...

  17. The Kyoto Protocol Emissions Trading Mechanisms - A Model for financing future nuclear development in Romania

    International Nuclear Information System (INIS)

    Purica, Ionut; John Saroudis

    2001-01-01

    At the beginning of 2001 Romania ratified the Kyoto Protocol (Law 3/2001) thus becoming the first European country to do so. The mechanisms of the Kyoto Protocol are now opening new ways to sponsor the financing of nuclear projects. In May 2001 Societatea Nationala Nuclearoelectrica S.S. (SNN) and Atomic Energy of Canada Limited and ANSALDO of Italy signed a contract to complete the second CANDU unit at Cernavoda thus giving a new momentum to the nuclear program in Romania. The Government of Romania has indicated its desire to proceed with the completion of the other units on the Cernavoda site and is open to explore every potential financing mechanism to make this a reality. Although the Kyoto Protocol was not ratified by those countries that have the greatest need to reduce emissions, a market for emissions trading has developed, Canada being one of the important players in this market. Since the emission reduction per dollar invested in the Romanian nuclear program would bring much more reduction than the marginal reduction per dollar invested in environmental protection programs in Canada, where the saturation effect is already taking place, we consider that the application of the Kyoto Protocol mechanisms represents a realistic source for a sustainable cooperation of the two countries. This trend is in line with the latest activities of the International Atomic Energy Agency (IAEA). This paper analyzes the impact that the use of emissions credits would have on a typical financing scheme for a future CANDU project in Romania given the present situation and also proposes a model for the structure of the emissions trade that would generate a source of funding for the project. The conclusion is that there is real potential in using Kyoto Protocol mechanisms for financing nuclear development with benefits for both Romania and Canada. (authors)

  18. Redefining RECs-Part 2: Untangling certificates and emission markets

    International Nuclear Information System (INIS)

    Gillenwater, Michael

    2008-01-01

    Renewable energy and greenhouse gas emissions markets are currently in a state of confusion regarding the treatment of Renewable Energy Certificate (RECs). How should emission-trading schemes treat RECs? How can emission mitigation policies provide real incentives for renewable generation? The objective of REC markets should be to promote additional renewable energy investments. The author asserts that defining RECs in terms of attributes, especially off-site attributes, does not further this goal. Ambiguous language such as 'environmental attribute' or 'environmental benefit' creates confusion in the marketplace while failing to address the relevant coordination issues with Renewable Portfolio Standard compliance markets, voluntary emission offset markets, or emission cap-and-trade markets. Specifically, defining RECs in terms of off-site attributes creates a number of problems, including that once an emissions cap-and-trade scheme is in place, such definitions of a REC can become indefensible. The author proposes to redefine RECs in terms of on-site attributes, which resolves the aforementioned problems and allows compliance and voluntary renewable energy and emission markets to function without conflicts. Ideally, environmental commodities should be homogeneous, first best measures of the relevant environmental good, as well as easily measured and verified. The author proposes tradable environmental commodities that achieve these characteristics

  19. The timeline of trading frictions in the European carbon market

    International Nuclear Information System (INIS)

    Medina, Vicente; Pardo, Ángel; Pascual, Roberto

    2014-01-01

    During its trial phase (Phase I), the EU Greenhouse Gas Emission Trading Scheme (EU-ETS) collapsed because of an over-allocation of emission allowances. We evaluate the progress of this market from the trial phase to the next commitment period (Phase II) from a microstructure angle. We show that trading frictions, as measured by the relative spread, information-asymmetry risk, and market-making profits decreased from Phase I to Phase II. Although volatility decreased, its noise-related component gained in importance at the expense of its information-related component, resulting in lower quality of the price changes. - Highlights: • We compare Phases I and II of the EU-ETS from a microstructure angle. • Phase II shows lower spreads, information-asymmetry risk and market making profits. • The contribution of noise to the volatility of prices increased during Phase II

  20. Development of a model for the prediction of the fuel consumption and nitrogen oxides emission trade-off for large ships

    DEFF Research Database (Denmark)

    Larsen, Ulrik; Pierobon, Leonardo; Baldi, Francesco

    2015-01-01

    The international regulations on fuel efficiency and NOx emissions of commercial ships motivate the investigation of new system layouts, which can comply with the regulations. In combustion engines, measures to reduce the fuel consumption often lead to increased NOx emissions and careful consider...... that increased system complexity can lead to lower fuel consumption and NOx. Fuel consumption reductions of up to 9% with a 6.5% NOx reduction were achieved using a hybrid turbocharger and organic Rankine cycle waste heat recovery system.......The international regulations on fuel efficiency and NOx emissions of commercial ships motivate the investigation of new system layouts, which can comply with the regulations. In combustion engines, measures to reduce the fuel consumption often lead to increased NOx emissions and careful...... consideration of this trade-off mechanism is required in the design of marine propulsion systems. This study investigates five different configurations of two-stroke diesel-based machinery systems for large ships and their influence on the mentioned trade-off. Numerical models of a low-speed two-stroke diesel...