WorldWideScience

Sample records for european emissions trading

  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. 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)

  3. 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

  4. 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.)

  5. 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.)

  6. 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.

  7. 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

  8. 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.)

  9. 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)

  10. 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,

  11. 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

  12. 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)

  13. 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)

  14. 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.

  15. 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

  16. 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

  17. 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)

  18. 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.

  19. EUROPEAN EMISSION TRADING SCHEME AT A TURNING POINT – FROM THE PILOT PHASE TO POST-2012

    Directory of Open Access Journals (Sweden)

    Aura Carmen Slate

    2011-09-01

    Full Text Available Climate change action has become a top priority for the European governments and for the European Union. Since the polluters are part of the energy-intensive industries, the mechanisms designed to reduce greenhouse gas emissions should focus on the economic sector as a primary source of concern. Therefore, environmental issues interrelate with the economic ones and one viable expression of this relation is the EU ETS, a cap-and-trade mechanism. The ETS started with a pilot phase in year 2005 and will continue with a third phase after 2012, period which coincides with the end of Kyoto’s commitment. Although statistical data prove that the EU ETS is becoming more efficient with each phase, in the absence of global involvement the efforts invested in the scheme will be made in vain.

  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. 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.

  2. Policy-making under uncertainty: commentary upon the European Union Emissions Trading Scheme

    International Nuclear Information System (INIS)

    Haar, L.N.

    2006-01-01

    The authors undertake a critical assessment of the intellectual foundations supporting the new European Union (EU) Emissions Trading Scheme (ETS, or the Scheme), the cornerstone of polices designed to achieve the targets of the Kyoto Agreement of reducing emissions of greenhouse gases (GHG). Despite its considerable scope, the authors found that officially sponsored research and academic efforts in support of ETS were surprisingly limited. Importantly, in advance of implementation, a definitive consensus on both the potential economic impact and the usefulness of the Scheme in reducing the GHG emissions had not been reached. Reviewing the literature, the authors encountered varying and, at times, conflicting viewpoints, officially and in academic research, on the potential economic impact of the Scheme. These included attempts to quantify its benefits and costs, raising concern that this huge and encompassing multi-national policy initiative may have been launched with inadequate intellectual ground-work. According to the authors consistency between the ETS and other EU policies, such as those relating to energy, should have been a key concern, but such aspects have received only minimal attention in both official and academic research. The European Commission has promoted open and competitive markets for gas and power across member states, but the record in achieving such conditions is relatively poor and the authors argue that, as a result, the environmental objectives of the EU Scheme may not be thwarted. In addition, continuing disagreement over the Kyoto Agreement itself-especially with regard to its potential costs and benefits-further frustrates efforts to rigorously justify a policy in support of reducing GHG emissions. The authors argue that, given the scope of the EU Scheme, the paucity of research evidencing that it is likely to succeed in reducing GHG emissions in the form of CO 2 is surprising and should be of concern to those affected by it along with

  3. Policy-making under uncertainty: Commentary upon the European Union Emissions Trading Scheme

    International Nuclear Information System (INIS)

    Haar, Laura N.; Haar, Lawrence

    2006-01-01

    The authors undertake a critical assessment of the intellectual foundations supporting the new European Union (EU) Emissions Trading Scheme (ETS, or the Scheme), the cornerstone of polices designed to achieve the targets of the Kyoto Agreement of reducing emissions of greenhouse gases (GHG). Despite its considerable scope, the authors found that officially sponsored research and academic efforts in support of ETS were surprisingly limited. Importantly, in advance of implementation, a definitive consensus on both the potential economic impact and the usefulness of the Scheme in reducing the GHG emissions had not been reached. Reviewing the literature, the authors encountered varying and, at times, conflicting viewpoints, officially and in academic research, on the potential economic impact of the Scheme. These included attempts to quantify its benefits and costs, raising concern that this huge and encompassing multi-national policy initiative may have been launched with inadequate intellectual ground-work. According to the authors consistency between the ETS and other EU policies, such as those relating to energy, should have been a key concern, but such aspects have received only minimal attention in both official and academic research. The European Commission has promoted open and competitive markets for gas and power across member states, but the record in achieving such conditions is relatively poor and the authors argue that, as a result, the environmental objectives of the EU Scheme may not be thwarted. In addition, continuing disagreement over the Kyoto Agreement itself-especially with regard to its potential costs and benefits-further frustrates efforts to rigorously justify a policy in support of reducing GHG emissions. The authors argue that, given the scope of the EU Scheme, the paucity of research evidencing that it is likely to succeed in reducing GHG emissions in the form of CO 2 is surprising and should be of concern to those affected by it along with

  4. 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

  5. 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.

  6. Free allocation in the European Emissions Trading System (EU ETS): identifying efficient mechanisms through to 2030

    International Nuclear Information System (INIS)

    Jalard, Matthieu; Alberola, Emilie

    2015-11-01

    . Besides, it enables to avoid over-allocations and perverse threshold effects observed in Phase III, but it further mutes the carbon price signal to consumers, and should be complemented by additional mechanisms to exploit demand -side abatement potentials. This mechanism would lead to a less impacting CSCF of 71% in 2030 with a 1.4% annual growth assumption that would however depend on the aggregate output level. Based on our estimates, this factor would be comprised between 62% and 82% in 2030, entailing an uncertainty about the net carbon cost borne by installations amounting to 10% of added value for the cement sector and 6% for the steel sector, with a 30 euro/tCO 2 price assumption. - In Scenario 3, a more targeted and focused allocation is presented, which better reflects the exposure to carbon leakage risks. It is proposed to use differentiated allocation rates either based on carbon cost and trade intensity thresholds like implemented in California for example, or based on targeted maximum carbon costs for each sectors depending on trade intensity. This would enable to reduce the allocation volume and overcome the ex post correction and the uncertainty coming with it, and to mitigate carbon costs more efficiently for exposed sectors. - The Scenario 4 assesses the European Commission's proposal, which could be leading to a 20% ex post reduction of allocation volume to all installations by 2030, on top of the 20% uniform reduction of benchmarks. Focusing allocation to exposed sectors, and enhancing flexibility in the supply of free allowances through a dynamic New Entrant Reserve could be levers to help combat carbon leakages more efficiently and maintain incentives to reduce emissions. In the end, it appears that a combination of instruments is needed to forge a credible road-map for decarbonization of industry sectors: a predictable carbon price signal, flexible and targeted free allocation, as well as additional instruments to steer demand for low

  7. 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)

  8. 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.

  9. 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.

  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. The European Union's potential for strategic emissions trading through permit sales contracts

    International Nuclear Information System (INIS)

    Eyckmans, Johan; Hagem, Cathrine

    2011-01-01

    Strategic market behavior by permit sellers will harm the European Union (EU) as it is expected to become a large net buyer of permits in a follow-up agreement to the Kyoto Protocol. In this paper, we explore how the EU could benefit from making permit trade agreements with non-EU countries. These trade agreements involve permit sales requirement, complemented by a financial transfer from the EU to the other contract party. Such agreements would enable the EU to act strategically in the permit market on behalf of its member states, although each member state is assumed to behave as a price taker in the permit market. Using a stylized numerical simulation model, we show that an appropriately designed permit trade agreement between the EU and China could significantly cut the EU's total compliance cost. This result is robust for a wide range of parameterizations of the simulation model. (author)

  12. 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.

  13. 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)

  14. Panorama 2016 - Overview of the refining industry in the European Union Emissions Trading System (EU ETS)

    International Nuclear Information System (INIS)

    Coussy, Paula; Jalard, Matthieu

    2015-12-01

    Since 2008, emissions from the refining sector have fallen by more than 12%, reaching 128 MtCO 2 e in 2014. Germany was the largest emitter of CO 2 e for the 2005- 2014 period. With Italy, Spain, the United Kingdom, France and the Netherlands, these six countries accounted for 71% of the industry's emissions in the EU ETS for 2014. During the 2008-2014 period, the European refining sector had a surplus of 74 MtCO 2 e, but since 2013 has had an annual deficit. Estimates show that the overall surplus of 74 MtCO 2 e should vanish by 2015. In the future, European demand for petroleum products will drop, and forecasts for crude processing are expected to decline. IFPEN estimates that, by 2035, this decline should reach 30%, leading to a 20% drop in the sector's emissions. Against this background, the amount of free allowances in the refining sector will fall, from 80% in 2014 to nearly 75% in 2020, leading to compliance costs for the European refining sector of approximately euro 600 million for 2020 alone, compared with the $6 billion needed for investment in Europe by 2035. Due to the great disparity in efficiency among European refineries (difference when compared with the benchmark), it is clear that it will be extremely costly for certain refineries to remain in operation. This will lead to the likely closure of refineries that are less efficient in terms of GHG emissions. (authors)

  15. 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

  16. 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....

  17. 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

  18. 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?

  19. Accounting for early action in the European Union Emission Trading Scheme

    International Nuclear Information System (INIS)

    Arto, Inaki; Gallastegui, Carmen; Ansuategi, Alberto

    2009-01-01

    In the context of emission markets, failure to include early action (EA) as a criterion when sharing out the reduction effort may be unfair. This paper presents (1) a method based on index decomposition that seeks to quantify EA and (2) a method for determining effort sharing considering EA. It is shown that, in the case of European industry (EU-15) and for the period 1995-2005, EA accounted for a reduction of 21% in energy-related CO 2 emissions. Considering two alternative schemes for sharing out the reduction effort in European industry, equal shares (all industries in all countries reduce their emissions by the same percentage) and taking EA into account, we find that Spain, Austria, Italy, the United Kingdom and Sweden would be better off under an equal shares scheme as opposed to one that takes EA into account. The efforts of the remaining countries would be greater than if EA was taken into account. An equal shares scheme would also greatly benefit the textile, non-metallic mineral, paper and 'other' industries, and would be particularly detrimental to the chemical, non-ferrous and other metal, and engineering industries.

  20. Accounting for early action in the European Union Emission Trading Scheme

    Energy Technology Data Exchange (ETDEWEB)

    Arto, Inaki [IEP, Instituto de Economia Publica, University of the Basque Country, Avd. Lehendakari Agirre, 48015 Bilbao (Spain); Departamento de Fundamentos del Analisis Economico I, University of the Basque Country, Avd. Lehendakari Agirre, 48015 Bilbao (Spain); Gallastegui, Carmen [IEP, Instituto de Economia Publica, University of the Basque Country, Avd. Lehendakari Agirre, 48015 Bilbao (Spain); Ansuategi, Alberto [Departamento de Fundamentos del Analisis Economico I, University of the Basque Country, Avd. Lehendakari Agirre, 48015 Bilbao (Spain)

    2009-10-15

    In the context of emission markets, failure to include early action (EA) as a criterion when sharing out the reduction effort may be unfair. This paper presents (1) a method based on index decomposition that seeks to quantify EA and (2) a method for determining effort sharing considering EA. It is shown that, in the case of European industry (EU-15) and for the period 1995-2005, EA accounted for a reduction of 21% in energy-related CO{sub 2} emissions. Considering two alternative schemes for sharing out the reduction effort in European industry, equal shares (all industries in all countries reduce their emissions by the same percentage) and taking EA into account, we find that Spain, Austria, Italy, the United Kingdom and Sweden would be better off under an equal shares scheme as opposed to one that takes EA into account. The efforts of the remaining countries would be greater than if EA was taken into account. An equal shares scheme would also greatly benefit the textile, non-metallic mineral, paper and 'other' industries, and would be particularly detrimental to the chemical, non-ferrous and other metal, and engineering industries. (author)

  1. 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.

  2. On the determinants of industrial competitiveness: The European Union emission trading scheme and the Italian paper industry

    International Nuclear Information System (INIS)

    Meleo, Linda

    2014-01-01

    The European Union Emission Trading Scheme (EU-ETS) represents the masterpiece that the EU adopted to achieve the Kyoto Protocol and “Europe 2020” strategy goals of reducing greenhouse gas (GHG). Although the EU-ETS is designed “in order to promote reductions of greenhouse gas emissions in a cost-effective and economically efficient manner” and “without prejudice for the Treaty”, the system has become a concern issue for firms and industries over competitiveness in European and international markets in addition to carbon leakage. This paper analyses whether and to what extent the EU-ETS may harm competitiveness, by following a qualitative approach, and presenting the case of the Italian paper industry, included in the system as an energy-intensive sector. More specifically, first the paper identifies those key factors that provide a qualitative measure of the “competitiveness risk” related to the EU-ETS; then, those factors are used to examine the Italian paper industry and to assess the actual and potential risks affecting the sector. This analysis is of interest given the lack of similar studies on the Italian paper industry and represents a starting point to serve further studies and future policymaking in Italy and Europe. - Highlights: • The European Emission Trading Scheme (EU-ETS) and the effects on the Italian paper industry competitiveness. • Key factors that provide a measure of the “competitiveness risk” for the Italian paper industry. • Those risks are limited at the moment, but some factors need to be carefully managed, such as electricity uses and prices. • Industrial policies and new firms strategies are required to manage the “competitiveness risk” in the coming years

  3. Integration of marine transport into the European Emissions Trading System. Environmental, economic and legal analysis of different options

    Energy Technology Data Exchange (ETDEWEB)

    Baeuerle, Tim [Rechtsanwaelte Zimmermann - Gretz - Trautmann - Baeuerle, Heidelberg (Germany); Graichen, Jakob; Meyer, Kristin; Seum, Stefan [Oeko-Institut e.V., Berlin (Germany); Kulessa, Margareta [Mainz Univ. of Applied Sciences (Germany); Oschinski, Matthias

    2010-05-15

    Marine vessels globally contribute to carbon dioxide emissions with approximately 3.3% (IMO 2009). Interna-tional ocean shipping has been growing significantly over recent years. To date international marine emissions are not part of the Kyoto obligations and the member states at IMO have not implemented instruments that would have limited or reduced the amount of greenhouse gas emissions from ships. The European Union has announced that if no international agreement including reduction targets for seaborne emissions has been approved by the UNFCCC by December 31, 2011, the EC is tasked to submit a proposal for including international marine transport in Euro-pean reduction targets and policy measures. An inclusion of international marine transport in the European Emis-sions Trading Scheme (EU ETS) is a likely scenario. The study investigates three options for integrating international ocean shipping into the EU ETS based on: a last period; the last distance travelled and the distance the cargo has travelled. Basing the system on a last period is superior to basing it on last trip or cargo in terms of environmental effectiveness. However, the system would cover vessel activities in international waters, even potentially between two non-European ports, and thus the legal feasi-bility of this challenge is discussed. Another element of the study is the analysis of the economic effects of the inte-gration of international seaborne greenhouse gas emissions into the EU ETS. Overall it can be concluded that the integration of international ocean shipping into the EU ETS is a legally and technically feasible option with no significantly negative or even beneficial economic effects. The extension to vessel activity in international waters secures adequate coverage and environmental effectiveness. This extension to vessel activity in international waters is not only a prerequisite for adequate emissions coverage, but is also associated with the least legal obstacles, is

  4. How to design a border adjustment for the European Union Emissions Trading System?

    International Nuclear Information System (INIS)

    Monjon, Stephanie; Quirion, Philippe

    2010-01-01

    Border adjustments are currently discussed to limit the possible adverse impact of climate policies on competitiveness and carbon leakage. We discuss the main choices that will have to be made if the European Union implements such a system alongside the EU ETS. Although more analysis is required on some issues, on others some design options seem clearly preferable to others. First, the import adjustment should be a requirement to surrender allowances rather than a tax. Second, the general rule to determine the amount of allowances per ton imported should be the product-specific benchmarks that the European Commission is currently elaborating for a different purpose (i.e. to determine the amount of free allowances). Third, this obligation should apply when the imported product is registered at the EU border, and not after the end of the year as is the case for domestic emitters. Fourth, the export adjustment should take the form of a rebate on the amount of allowances a domestic emitter has to surrender. Five, this rebate should equal the above-mentioned product-specific benchmarks, not the emissions of the particular exporting plant or firm. Finally, the adjustment does not have to apply to consumer products but mostly to basic products. (author)

  5. 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

  6. Lobbying during the revision of the European emissions trading system: Easier for Swedish industrial insiders than for Norwegian outsiders?

    Energy Technology Data Exchange (ETDEWEB)

    Miard, Kadri

    2011-07-01

    This report examines and compares the lobbying routes taken by Swedish and Norwegian energy-intensive industry firms during the revision of the European Emissions Trading System. Two key explanatory factors are in focus here - whether the company has its origin in the EU member state Sweden or in non-member Norway; and the size of the company. Six companies are chosen as cases: Norsk Hydro, Norcem and Norske Skog from Norway; and SSAB, Cementa and Svenska Cellulosa Aktiebolaget from Sweden. A key finding is the extensive use of European associations by all these firms in lobbying EU institutions. Also prevalent is the use of national associations, which would indicate benefits in the form of better institutional response to collective lobbying and resource-sharing aspects. Although Norwegian firms seem to have struggled more than Swedish firms when it comes to lobbying EU institutions, due to lack of access to the EU, not all differences can be explained by the fact of originating in an EU member state Sweden or non-member Norway. While company size has a positive effect on the number of available lobbying routes, this appears to depend on cross-border production and possibly other influences as well.(auth)

  7. Impact of the european emission trading scheme for the air transportation industry on the valuation of aircraft purchase rights

    International Nuclear Information System (INIS)

    Tarradellas-Espuny, J.; Salamero-Salas, A.; Martinez-Costa, C.

    2009-01-01

    The European Commission issued a legislative proposal in December 2006, suggesting a cap on CO 2 emissions for all planes arriving or departing from EU airports, while allowing airlines to buy and sell pollution credits on the EU carbon market (Emission Trading Scheme, or ETS). In 2008 the new scheme got the final approval. Real options appear to be ab appropriate methodology to capture the extra value brought by the new legislation on new airplane purchase rights: The airline will surely have the purchase right to the new plane if the operation of the plane generates unused pollution credits that the airline can sell at a minimum price in the carbon market. This paper tries to determine if the impact of ETS in the valuation of aircraft purchase rights is significant enough in monetary terms to include the new legislation in a complex real-option model already proposed by the authors recently. The research concludes that even the impact of ETS justifies its inclusion in the model, the quality of the available sets of historical data still raises some questions. Particularly, the assumption of market efficiency for the Carbon Pool over the recent years needs to be treated with caution. (Author) 9 refs

  8. 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

  9. European emissions trading and the international competitiveness of energy-intensive industries: a legal and political evaluation of possible supporting measures

    International Nuclear Information System (INIS)

    Asselt, H. van; Biermann, F.

    2007-01-01

    The EU Emissions Trading Directive is expected by European energy-intensive industries to harm their competitiveness vis-a-vis non-European competitors. Many additional measures have thus been proposed to 'level the playing field' and to protect the competitiveness of European energy-intensive industries within the larger effort of reducing Europe's greenhouse gas emissions and of meeting its obligations under the 1997 Kyoto Protocol. This article evaluates a range of proposed measures based on a set of political and legal criteria, including environmental effectiveness; the need to consider differentiated commitments, responsibilities and capabilities; conformity with world trade law and European Union law; and Europe's overall political interests. We discuss measures that could be adopted by the European Union and its member states, such as direct support for energy-intensive industries, restrictions of energy-intensive imports into the European Union through border cost adjustments, quotas or technical regulations, and cost reimbursement for affected developing countries. We also analyse measures available to multilateral institutions such as the United Nations Framework Convention on Climate Change and its Kyoto Protocol and the World Trade Organisation. We conclude with a classification of the discussed measures with red (unfeasible), yellow (potentially feasible) or green (feasible) labels. (author)

  10. European emissions trading and the international competitiveness of energy-intensive industries: a legal and political evaluation of possible supporting measures

    International Nuclear Information System (INIS)

    Asselt, Harro van; Biermann, Frank

    2007-01-01

    The EU Emissions Trading Directive is expected by European energy-intensive industries to harm their competitiveness vis-a-vis non-European competitors. Many additional measures have thus been proposed to 'level the playing field' and to protect the competitiveness of European energy-intensive industries within the larger effort of reducing Europe's greenhouse gas emissions and of meeting its obligations under the 1997 Kyoto Protocol. This article evaluates a range of proposed measures based on a set of political and legal criteria, including environmental effectiveness; the need to consider differentiated commitments, responsibilities and capabilities; conformity with world trade law and European Union law; and Europe's overall political interests. We discuss measures that could be adopted by the European Union and its member states, such as direct support for energy-intensive industries, restrictions of energy-intensive imports into the European Union through border cost adjustments, quotas or technical regulations, and cost reimbursement for affected developing countries. We also analyse measures available to multilateral institutions such as the United Nations Framework Convention on Climate Change and its Kyoto Protocol and the World Trade Organisation. We conclude with a classification of the discussed measures with red (unfeasible), yellow (potentially feasible) or green (feasible) labels

  11. 6. Analisis Implementasi Cyber Security Di Uni Eropa: Studi Kasus Carbon Credits Hacking Dalam European Union Emission Trading Scheme (EU ETS) Tahun 2010-2013

    OpenAIRE

    Aisya, Naila Sukma; Putranti, Ika Riswanti; Wahyudi, Fendy Eko

    2017-01-01

    Since the last two decades in the 20th century, the European Union (EU) has presented itself as a leader in climate change issues. The leadership manifested in the formation of the European Union Emission Trading Scheme (EU ETS) as an effort to fulfill the commitments of the Kyoto Protocol to reduce emissions in the region. But the existence of the EU ETS has been challenged by the emergence of carbon credits hacking case in some national registration systems in the EU ETS. This study discuss...

  12. The Outlook of Carbon Prices. Price Range Forecast for European Union Allowances in European Union Emission Trading Scheme Phase III

    NARCIS (Netherlands)

    Yunyi Chen, Connie

    2012-01-01

    SUMMARY Climate change mitigation policy has evolved rapidly both internationally and domestically, especially since the introduction of Kyoto Protocol flexible mechanisms - Clean Development Mechanism (CDM), Joint Implementation (JI) and Emission Tradin

  13. 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

  14. European wood-fuel trade

    International Nuclear Information System (INIS)

    Hillring, B.; Vinterbaeck, J.

    2001-01-01

    This paper discusses research carried out during the l990s on European wood fuel trade at the Department of Forest Management and Products, SLU, in Sweden. Utilisation of wood-fuels and other biofuels increased very rapidly in some regions during that period. Biofuels are replacing fossil fuels which is an effective way to reduce the future influence of green house gases on the climate. The results indicate a rapid increase in wood-fuel trade in Europe from low levels and with a limited number of countries involved. The chief products traded are wood pellets, wood chips and recycled wood. The main trading countries are, for export, Germany and the Baltic states and, for import, Sweden, Denmark and to some extent the Netherlands. In the future, the increased use of biofuel in European countries is expected to intensify activity in this trade. (orig.)

  15. Renewable energy sources in European energy supply and interactions with emission trading

    International Nuclear Information System (INIS)

    Moest, Dominik; Fichtner, Wolf

    2010-01-01

    This paper presents a model-based approach, which allows to determine the optimised structure and operation of the EU-15 electricity supply under different political and economic framework conditions, with a focus on the integration of renewable energy sources for electricity generation (RES-E) in the EU-15 countries. The approach is designed to take into account the characteristics of power production from both renewable and conventional sources, including the technological and economic characteristics of existing plants as well as those of future capacity expansion options. Beyond that, fuel supply structures are modelled, as well as the international markets for power and CO 2 -certificates with their restrictions. Thus, a profound evaluation of the exploitation of mid-term renewable potentials and an assessment of the market penetration of the various renewable power generation technologies under the (normative) premise of a cost-optimised evolution of the power system becomes possible. Results show that a promotion of renewable energies reduces the scarcity of CO 2 -emission allowances and thus lowers marginal costs of CO 2 reduction up to 30% in 2030. Despite the higher overall costs, a diversification of the energy resource base by RES-E use is observed, as primarily natural gas and nuclear fuels are replaced.

  16. Has airline efficiency affected by the inclusion of aviation into European Union Emission Trading Scheme? Evidences from 22 airlines during 2008–2012

    International Nuclear Information System (INIS)

    Li, Ye; Wang, Yan-zhang; Cui, Qiang

    2016-01-01

    We investigate the impacts of including aviation into European Union Emission Trading Scheme on airline efficiency since 2008. Airline efficiency is divided into three stages: Operations Stage, Services Stage and Sales Stage, and Greenhouse Gases Emission is treated as an undesirable output of Services Stage. Two models, Network Slacks-Based Measure with weak disposability and Network Slacks-Based Measure with strong disposability, are established to evaluate the efficiencies of 22 international airlines from 2008 to 2012. The results show that: (1) Most airlines' efficiencies have increased in the period. (2) The average efficiency of European airlines is much higher than that of non-European airlines. (3) The model with weak disposability is more reasonable in distinguishing the airline efficiency while strong disposability is a more reasonable way in treating undesirable outputs. - Highlights: • A new theoretical model of airlines efficiency is built. • Network Slacks-Based Measure models with weak disposability and strong disposability are proposed. • The efficiencies of 22 airlines from 2008 to 2012 are evaluated. • The impacts of including airlines into European Union Emission Trading Scheme are analyzed.

  17. 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)

  18. 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

  19. 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.)

  20. Cost distribution for the EU ETS. Who pays for the costs of the third phase of the European Emissions Trading System?

    International Nuclear Information System (INIS)

    De Bruyn, S.M; De Jong, F.L.; Korteland, M.H.; Nelissen, D.; Markowska, A.Z.

    2010-06-01

    After 2012, the third phase of the EU Emissions Trading Scheme (EU ETS) that lasts until 2020 will come into effect. New in this phase is the European harmonized rights issue in which for each sector the basic emission rights and the issue of those rights is fixed. Also, a significantly larger proportion of those rights will be auctioned. For the Netherlands the third phase of the EU ETS means that the emissions of companies in 2020 should be reduced by 21% compared to 2005. This involves costs for these companies, including the purchase of rights or taking technical and organizational measures to cut CO2 emissions. This study provides insight into the magnitude of these costs, who will bear the cost and the total direct income effects on businesses, consumers and government. [nl

  1. 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

  2. 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.

  3. 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.

  4. 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

  5. ETUDE - European Trade Union Distance Education.

    Science.gov (United States)

    Creanor, Linda; Walker, Steve

    2000-01-01

    Describes transnational distance learning activities among European trade union educators carried out as part of the European Trade Union Distance Education (ETUDE) project, supported by the European Commission. Highlights include the context of international trade union distance education; tutor training course; tutors' experiences; and…

  6. 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

  7. 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

  8. 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

  9. Define a course for the France in the european system of emissions quotas exchange in agreement with the European Emission Trading Scheme directive; Definir un cap pour la France dans le systeme europeen d'echange de quotas d'emissions en accord avec la directive 'ETS'

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2006-04-15

    The project aims to define an independent evaluation of a course in France for the application of the European Emissions Trading Scheme, in the part I and II, taking into account the objective of the emission trading directive, using public data available in march 2006. In a first part the author presents the five key criteria which should be used to define the National Allocation Plan. The next part is the definition of the course and the last part the implications of the course. (A.L.B.)

  10. 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...

  11. Sectoral agreements and competitive distortions - a Swedish perspective; Effects of EU Emissions Trading System for European industry

    Energy Technology Data Exchange (ETDEWEB)

    Zetterberg, Lars; Holmgren, Kristina

    2009-03-15

    sector approaches to be discussed under the Ad-hoc Working Group on future commitments for Annex I Parties under the Kyoto Protocol (AWG-KP): i) Sector CDM - a CDM crediting mechanism with a previously established baseline ii) Sectoral no-lose mechanism - Sectoral crediting against a previously established no-lose target iii) Sectoral emission trading based on a sector emissions cap Based on these three sectoral models, we have analysed what parameters are important for reducing competition distortion for Swedish industry. We have assumed that these sector agreements are implemented in a developing country (DC). We conclude that if sector agreements are to reduce distortions on competition, it is important that the sector agreements create a real carbon price in the DC, i.e. that emissions of carbon dioxide are associated with a cost for the emitter. All three sector agreement-models suggested by the EU can potentially create a carbon price. The driver for emission reductions are in all three cases the international demand for offsets. As a potentially large buyer of off-sets, the EU demand for off-sets is likely to increase the carbon price in the DC sector. The choice of EU policy with respect to imports of off-set will therefore have great importance. Other buyers, such as other countries, emission trading systems or the voluntary credit market will of course also be important. Moreover, imports of off-sets may reduce the price on EU ETS allowances, thus further narrowing the carbon price gap between the two markets. If an important objective of a sectoral agreement is to reduce competition distortion it should be implemented in sectors where the corresponding Swedish industry has significant carbon related costs and where there is significant trade intensity between Sweden and regions outside the EU. Our preliminary analysis indicates that Swedish sectors with potentially high maximum value at stake are Refineries; Pulp and Paper; Iron and Steel; Cement and Lime; and

  12. 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.)

  13. 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.

  14. 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

  15. Integration, Trade Policy and European Footwear Trade

    OpenAIRE

    Winters, L. Alan

    1992-01-01

    This paper constructs a simulation model of the EC footwear market with which to consider the effects of EC trade policies. It examines the Southern enlargement of the EC, the quotas imposed on Korean and Taiwanese sales - initially in France and Italy and subsequently, in line with the `1992' programme, EC-wide - and the liberalization of imports from Eastern Europe. Import restrictions are shown to be costly - especially those against Eastern Europe.

  16. 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

  17. 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

  18. 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

  19. 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

  20. Globalized Trade, Logistics and Intermodality: European Perspectives

    NARCIS (Netherlands)

    Henstra, D.; Ruijgrok, C.J.; Tavasszy, L.A.; Capineri, C.; Leinbach, T.; Black, W.

    2007-01-01

    This chapter describes megatrends that are shaping international trade, logistics organization and (multi)modal transport in Europe. It focuses on impacts on the European context, both from the peculiarities arising from the European uni?cation process and the European transport policies but also

  1. 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.

  2. 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 ...

  3. 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

  4. 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

  5. Swedish Industry and Kyoto. An Assessment of the Effects of the European CO2 Emission Permit Trading System

    International Nuclear Information System (INIS)

    Braennlund, Runar; Lundgren, Tommy

    2005-01-01

    We assess the effects on Swedish industry input and output demands of different climate policy scenarios connected to energy policy induced by the Kyoto protocol. A unique data set containing firm level data on outputs and inputs during the years 1991-2001 is used to estimate a factor demand model, which is then simulated for different policy scenarios. Sector specific estimation suggests that the proposed quadratic profit function specification exhibit properties and robustness that are consistent with economic theory; that is, all own-price elasticities are negative and all output elasticities are positive. Furthermore, the elasticities show that the input demands are, in most cases, relatively inelastic. Simulation of the model for 6 different policy scenarios reveal that the effects on Swedish base industry of a EU level permit trade system is dependent on (i) removal or no removal of current CO 2 tax, (ii) the established price of permits, and (iii) what will happen to the electricity price. Our analysis show that changes in electricity price may be more important than the price of permits for some sectors

  6. Swedish industry and Kyoto - An assessment of the effects of the European CO2 emission trading system

    International Nuclear Information System (INIS)

    Braennlund, Runar; Lundgren, Tommy

    2007-01-01

    We assess the effects on Swedish industry input demands and output of different climate policy scenarios connected to energy policy induced by the Kyoto protocol. We use a unique dataset containing firm-level data on outputs and inputs between 1991 and 2001 to estimate a factor demand model, which we use to simulate different policy scenarios. Sector-specific estimation suggests that the proposed quadratic profit function specification exhibits properties and robustness that are consistent with economic theory; that is, all own-price elasticities are negative and all output elasticities are positive. Furthermore, the elasticities show that the input demands are, in most cases, relatively inelastic. Simulation of the model for six different policy scenarios reveal that effects on the Swedish base industry of a EU-level permit-trading system depends on (i) the removal or maintenance of the current CO 2 tax, (ii) the price of permits, and (iii) the future price of electricity. Our analysis shows that changes in electricity price may be more important than the price of permits for some sectors. (author)

  7. Efficiency of European emissions markets: Lessons and implications

    International Nuclear Information System (INIS)

    Krishnamurti, Chandrasekhar; Hoque, Ariful

    2011-01-01

    While prior studies have shown that emission rights and futures contracts on emission rights are efficiently priced, there are no studies on the efficiency of the options market. Therefore, this study fills the gap. We examine empirical evidence regarding the efficiency of the options market for emissions rights in Europe. We employ the put-call parity approach to test the efficiency of options on emission rights traded in the European market. This implies that firms can trade options on emission rights in addition to other existing strategies in order to manage their greenhouse gas emissions. - Highlights: → Efficiency of the European options market for emissions. → Design implications for the development of emissions trading schemes in other countries. → Governance issues pertaining to emissions trading.

  8. 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.

  9. 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.

  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. 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.

  12. 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

  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 without price-takers that deals with Cournot-type models of

  14. 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.)

  15. 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.

  16. 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.

  17. 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').

  18. 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

  19. Emmission trading in EU law. The EU emission trading directive as a new tool in European air pollution abatement policy; Emissionshandel im Gemeinschaftsrecht. Die EG-Emissionshandelsrichtlinie als neues Instrument europaeischer Klimaschutzpolitik

    Energy Technology Data Exchange (ETDEWEB)

    Kerth, Y.

    2004-07-01

    The publication investigates in how far the EU followed up its voiced political intentions to reduce air pollution by legal actions. The climate protection tools of the EU are investigated both from a historical and a structural view. After this analysis of the status quo, the new EU emission trading system is analyzed in detail because of its innovative character. (orig.)

  20. 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.

  1. ANALYSIS OF EUROPEAN UNION LEGISLATION ON TRADE

    Directory of Open Access Journals (Sweden)

    GRIBINCEA Lilia;

    2016-12-01

    Full Text Available On June 27, 2014 there was signed an Association Agreement between the Republic of Moldova, on one hand and the European Union and the European Atomic Energy Community and its Member States, on the other hand (hereinafter - the Association Agreement. The Association Agreement entered into force on 1 July 2016. The signing of the Association Agreement was as a result of the close ties between the parties established by the Partnership and Cooperation Agreement between the European Communities and their Member States, on the one hand, and the Republic of Moldova on the other hand, which develops within the European Neighborhood policy and the Eastern Partnership, as well as recognition of the shared desire of the parties to further develop, strengthen and expand their relationships. The Association Agreement contributes to the development of trade and economic relations between the parties. The Republic of Moldova is obliged to take necessary measures to ensure compliance with the objectives of Union's regulations and to follow the principles and practices set out in the relevant acquis of the Union. The Republic of Moldova will also gradually include relevant acquis of the Union in its legislation, in accordance with the provisions of the Association Agreement. The legislative background regulatory EU trade is subject studies only a small circle of researchers, approaches and sequential episodic in character, without being integrated into a systemic study, complex, integrated. The objectives of the research are to analyze the most important EU regulations on trade.

  2. 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....

  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. 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...

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. Examination of forest products trade between Turkey and European ...

    African Journals Online (AJOL)

    The success of getting in the foreign trade forms one of the basic stones of economic development for countries. The current and potential trading volume among countries and determining the main factors affecting trade are quite important. The trade currents of the European Union (EU) countries and Turkey in the forest ...

  14. 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)

  15. 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

  16. 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

  17. 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

  18. 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

  19. 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

  20. European biorefineries: Implications for land, trade and employment

    International Nuclear Information System (INIS)

    Thornley, Patricia; Chong, Katie; Bridgwater, Tony

    2014-01-01

    Highlights: • Five diverse European member states could support around 30 biorefineries. • The facilities would create around 2 million man-years of employment. • Biorefineries create more jobs per unit of feedstock than bioelectricity plants. • Contribution to national GDP is very small; but agriculturally significant. • Increased straw demand could indirectly increase greenhouse gas emissions. - Abstract: Biorefineries are expected to play a major role in a future low carbon economy and substantial investments are being made to support this vision. However, it is important to consider the wider socio-economic impacts of such a transition. This paper quantifies the potential trade, employment and land impacts of economically viable European biorefinery options based on indigenous straw and wood feedstocks. It illustrates how there could be potential for 70–80 European biorefineries, but not hundreds. A single facility could generate tens of thousands of man-years of employment and employment creation per unit of feedstock is higher than for biomass power plants. However, contribution to national GDP is unlikely to exceed 1% in European member states, although contributions to national agricultural productivity may be more significant, particularly with straw feedstocks. There is also a risk that biorefinery development could result in reduced rates of straw incorporation into soil, raising concerns that economically rational decisions to sell rather than reincorporate straw could result in increased agricultural land-use or greenhouse gas emissions

  1. 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)

  2. 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

  3. 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

  4. 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 ...

  5. 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.)

  6. 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.

  7. 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

  8. 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).

  9. 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.

  10. 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

  11. 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

  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. 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.

  14. 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

  15. Further development of the EU Emissions Trading Scheme in Germany and the European Union under consideration of experiences in other EU Member States; Weiterentwicklung des Emissionshandels - national und auf EU-Ebene

    Energy Technology Data Exchange (ETDEWEB)

    Wartmann, S; Klaus, S; Scharte, M; Harnisch, J [Ecofys GmbH, Nuernberg (Germany); Heilmann, S; Bertenrath, R [FiFo Koeln (Germany)

    2008-02-15

    The study analyses options for further development of the EU Emissions Trading Scheme (EU-ETS) after 2012. The first analysis focuses on the effects of the EU-ETS on companies, power prices, competitiveness and employment. It is followed by an analysis of overlaps or lacking coverage regarding the climate policies EU-ETS, Eco-Tax (Oekosteuer) resp. Energy Tax, the Renewable Energy Sources Act and the Combined Heat and Powert Act. These instruments are analysed with regards to their coherence. As a next step, the national allocation plans of France, The Netherlands, the United Kingdom and Poland are evaluated and recommendations are developed. Best practice recommendations for further developing the EU-ETS after 2012 both at the European and the national level are developed from the comparison of these European national allocation plans. Finally, design features of certificate systems relevant for international linking of such systems are addressed. In the analysis such design features are identified and approaches for problems potentially arising when certificate systems are linked, are developed. (orig.)

  16. Trade integration and trade imbalances in the European Union: a network perspective.

    Science.gov (United States)

    Krings, Gautier M; Carpantier, Jean-François; Delvenne, Jean-Charles

    2014-01-01

    We study the ever more integrated and ever more unbalanced trade relationships between European countries. To better capture the complexity of economic networks, we propose two global measures that assess the trade integration and the trade imbalances of the European countries. These measures are the network (or indirect) counterparts to traditional (or direct) measures such as the trade-to-GDP (Gross Domestic Product) and trade deficit-to-GDP ratios. Our indirect tools account for the European inter-country trade structure and follow (i) a decomposition of the global trade flow into elementary flows that highlight the long-range dependencies between exporting and importing economies and (ii) the commute-time distance for trade integration, which measures the impact of a perturbation in the economy of a country on another country, possibly through intermediate partners by domino effect. Our application addresses the impact of the launch of the Euro. We find that the indirect imbalance measures better identify the countries ultimately bearing deficits and surpluses, by neutralizing the impact of trade transit countries, such as the Netherlands. Among others, we find that ultimate surpluses of Germany are quite concentrated in only three partners. We also show that for some countries, the direct and indirect measures of trade integration diverge, thereby revealing that these countries (e.g. Greece and Portugal) trade to a smaller extent with countries considered as central in the European Union network.

  17. Trade Integration and Trade Imbalances in the European Union: A Network Perspective

    Science.gov (United States)

    Krings, Gautier M.; Carpantier, Jean-François; Delvenne, Jean-Charles

    2014-01-01

    We study the ever more integrated and ever more unbalanced trade relationships between European countries. To better capture the complexity of economic networks, we propose two global measures that assess the trade integration and the trade imbalances of the European countries. These measures are the network (or indirect) counterparts to traditional (or direct) measures such as the trade-to-GDP (Gross Domestic Product) and trade deficit-to-GDP ratios. Our indirect tools account for the European inter-country trade structure and follow (i) a decomposition of the global trade flow into elementary flows that highlight the long-range dependencies between exporting and importing economies and (ii) the commute-time distance for trade integration, which measures the impact of a perturbation in the economy of a country on another country, possibly through intermediate partners by domino effect. Our application addresses the impact of the launch of the Euro. We find that the indirect imbalance measures better identify the countries ultimately bearing deficits and surpluses, by neutralizing the impact of trade transit countries, such as the Netherlands. Among others, we find that ultimate surpluses of Germany are quite concentrated in only three partners. We also show that for some countries, the direct and indirect measures of trade integration diverge, thereby revealing that these countries (e.g. Greece and Portugal) trade to a smaller extent with countries considered as central in the European Union network. PMID:24465381

  18. The Doha Negotiations on Trade in Goods: An European Perspective

    OpenAIRE

    Messerlin , Patrick

    2006-01-01

    The note reviews the basic market access issues in the Doha negotiations on trade in goods from an European perspective. First, it shows that some European negotiators are demanding more concessions in manufacturing (NAMA) that the European business community is asking for - adding strong tensions in a context already marked by severe problems in farm talks. Second, the note reveals the European interests really at stake in the agricultural negotiations, before addressing the negotiating issu...

  19. Trade Union Channels for Influencing European Union Policies

    Directory of Open Access Journals (Sweden)

    Bengt Larsson

    2015-10-01

    Full Text Available This paper analyzes what channels trade unions in Europe use when trying to influence European Union (EU policies. It compares and contrasts trade unions in different industrial relations regimes with regard to the degree to which they cooperate with different actors to influence EU policies, while also touching on the importance of sector differences and organizational resources. The study is based on survey data collected in 2010–2011 from unions affiliated with the European Trade Union Confederation and from below peak unions in 14 European countries. Results of the survey show that the ‘national route’ is generally the most important for trade unions in influencing EU policies in the sense that this channel is, on average, used to the highest degree. In addition, the survey delineates some important differences between trade unions in different industrial relations regimes with regard to the balance between the national route and different access points in the ‘Brussels route’.

  20. 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

  1. Foreign Trade Dvelopment between Libya and the European Union

    OpenAIRE

    Mansoor Maitah; Nassir Salim; Abulgasem Bazina

    2011-01-01

    This article deals with the analysis of foreign trade development betweenLibyaand the European Union in the recent years. Libya is one of the developing countries with large area, low density of population and large endowment of natural resources, oil and gas. The Libyan economy like a number of other Arab economies, depends heavily on oil revenue, it relies heavily on a single exportable commodity, as the main source of foreign exchange earnings. Trade relations betweenLibyaand the European ...

  2. DEVELOPMENT STAGE OF RETAIL TRADE IN THE EUROPEAN UNION

    Directory of Open Access Journals (Sweden)

    Catana Adina

    2012-07-01

    Full Text Available According to Karel De Gucht, Trade Commissioner from the European Commission, trade is working for Europe's economic recovery by ensuring growth and jobs. The European renewed trade strategy will open markets and connect Europe to the main sources and regis of global growth. The aim is to ensure that European business gets a fair deal and that countries’ rights are respected so that all can enjoy the benefits of trade. Thanks to the ease of modern transport and communications, it is now easier to produce, buy and sell goods around the world which gives European companies of every size the potential to trade outside Europe. This paper’s objective is to analyse the development stage of the European Union’s retail, and its member countries. The study is based on the research taken in the project of PhD research with the theme: The impacts of Economic Integration on Romanian Retail. For my research I used data from Eurostat, National Statistical Institute, European Union official website In the past 10 years, the volume of retail trade in EU member states has increased, but the extent of the changes varies substantially from one country to another.

  3. 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

  4. Rents in the European power sector due to carbon trading

    International Nuclear Information System (INIS)

    Keppler, Jan Horst; Cruciani, Michel

    2010-01-01

    The European Union Emissions Trading Scheme (EU ETS) has imposed a price on the allowances for CO 2 emissions of electricity companies. Integrating this allowance price into the price of electricity earns a rent for companies who have received these allowances for free. During Phase I, 2005-2007, rents corresponding to the aggregate value of allocated allowances amounted to roughly EUR 13 billion per year. However, due to the specific price-setting mechanism in electricity markets true rents were considerably higher. This is due to the fact that companies also that have not received any allowances gain additional infra-marginal rents to the extent that their variable costs are below the new market price after inclusion of the allowance price. Producers with low carbon emissions and low marginal costs thus also benefit substantially from carbon pricing. This paper develops a methodology to determine the specific interaction of the imposition of such a CO 2 constraint and the price-setting mechanism in the electricity sector under the assumption of marginal cost pricing in a liberalized European electricity market. The article thus provides an empirical estimate of the true total rents of power producers during Phase I of the EU-ETS (2005-2007). The EU ETS generated in Phase I additional rents in excess of EUR 19 billion per year for electricity producers. These transfers are distributed very unevenly between different electricity producers. In a second step, the paper assesses the impact of switching from free allocation to an auctioning of allowances in 2013. We show that such a switch to auctioning will continue to create additional infra-marginal rents for certain producers and will leave the electricity sector as a whole better off than before the introduction of the EU ETS. (author)

  5. 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

  6. 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)

  7. 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

  8. Revenue, welfare and trade effects of European Union Free Trade Agreement on South Africa

    Directory of Open Access Journals (Sweden)

    Kore M.A. Guei

    2017-10-01

    Full Text Available Background: Using the partial equilibrium WITS-SMART Simulation model to assess the impact of liberalisation under the Trade Development and Cooperation Agreement (TDCA of a free trade area between the European Union and South Africa. The identification of the impact of such agreement allows for trade policy negotiation adjustment that can be beneficial for South Africa. Aim: The aim of the study is to estimate and discuss the impact of a Free Trade Agreement (FTA with the European Union and South Africa. More specifically, the study intends to estimate the impact of revenue, welfare, imports, exports, trade creation and to come up with policies options for South Africa that can be used in negotiations and policy formulations. Setting: The study used international trade data (2012 available in the WITS-SMART model to assess bilateral trade agreement between the European Union and South Africa. Methods: To identify the impact on revenue, welfare, imports, exports and trade creation, the study simulated an FTA (0% tariff rate for all goods exchanged between the European Union and South Africa. Also, the elasticity of substitution used for the simulation model was 99%. Results: The findings of the study reveal that total trade effects in South Africa are likely to surge by US$ 1.036 billion with a total welfare valued at US$ 134 million. Dismantling tariffs on all European Union (EU goods would be beneficial to consumers through net trade creation. Total trade creation would be US$ 782 million. However, South African producers are likely to contribute a trade diversion of US$ 254 million which has a negative impact on consumer welfare. The country might also experience a revenue loss amounting to US$ 562 million because of the removal of tariffs. In trade, the country’s exports and imports to the EU are expected to increase by US$ 12.419 million and US$ 1.266 million, respectively. Conclusion: The European Union–South Africa FTA would

  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. 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

  11. 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

  12. 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

  13. Skill Content of Intra-European Trade Flows

    Directory of Open Access Journals (Sweden)

    Zeddies, Goetz

    2013-04-01

    Full Text Available In recent decades, the international division of labor has expanded rapidly in the wake of European integration. In this context, especially Western European high-wage countries should have specialized on (human-capital intensively manufactured goods and should have increasingly sourced labor-intensively manufactured goods, especially parts and components, from Eastern European low wage countries. Since this should be beneficial for the high-skilled and harmful to the lower-qualified workforce in high-wage countries, the opening up of Eastern Europe is often considered as a vital reason for increasing unemployment of the lower-qualified in Western Europe. This paper addresses this issue by analyzing the skill content of Western European countries’ bilateral trade using input-output techniques in order to evaluate possible effects of international trade on labor demand. Thereby, differences in factor inputs and production technologies have been considered, allowing for vertical product differentiation. In this case, skill content of bilateral exports and imports partially differs substantially, especially in bilateral trade between Western and Eastern European countries. According to the results, East-West trade should be harmful particularly to the medium-skilled in Western European countries.

  14. Abatement of CO2 emissions in the European Union

    International Nuclear Information System (INIS)

    Lesourne, J.; Keppler, J.H.; Jaureguy-Naudin, Maite; Smeers, Yves; Bouttes, Jean-Paul; Trochet, Jean-Michel; Dassa, Francois; Neuhoff, Karsten

    2008-01-01

    This first monograph of the Ifri program on European Governance and Geopolitics of Energy is devoted to the control of carbon dioxide emissions within the European Union. Since it is almost unanimously accepted that Greenhouse Gas emissions constitute the main cause of the observed increase of the world average temperature, the system implemented by the European Union to limit and decrease the CO 2 emissions is a significant pillar of the EU energy policy, the two others being the acceptance by the Member States of long-term commitments (for instance on the future share of renewable energy sources in their energy balance sheet) and the establishment of an internal market for electricity and gas. Though simple in principle, the European Union Greenhouse Gas Emission Trading Scheme (EU ETS) is in fact rather complex, and only experts really understand its merits and its deficiencies. These deficiencies are real and will have to be corrected in the future for the system to be effective. At this moment, when the 2005-2007 trial phase of the EU ETS is ending, the monograph has the purpose to stimulate the discussion between experts and to enable all those interested in the topic to understand the issues and to take part in the public debates on the subject. The monograph contains five papers: - 'An Overview of the CO 2 Emission Control System in the European Union' by Jacques Lesourne and Maite Jaureguy-Naudin. - 'Description and Assessment of EU CO 2 Regulations' by Yves Smeers. - 'Assessment of EU CO 2 Regulations' by Jean-Paul Bouttes, Jean-Michel Trochet and Francois Dassa. - 'Investment in Low Carbon Technologies, Policies for the Power Sector' by Karsten Neuhoff. - 'Lessons Learned from the 2005-2007 Trial Phase of the EU Emission Trading System' by Jan Horst Keppler

  15. European initiatives for modeling emissions from transport

    DEFF Research Database (Denmark)

    Joumard, Robert; Hickman, A. John; Samaras, Zissis

    1998-01-01

    In Europe there have been many cooperative studies into transport emission inventories since the late 80s. These cover the scope of CORINAIR program involving experts from seven European Community laboratories addressing only road transport emissions at national level. These also include the latest...... covered are the composition of the vehicle fleets, emission factors, driving statistics and the modeling approach. Many of the European initiatives aim also at promoting further cooperation between national laboratories and at defining future research needs. An assessment of these future needs...... is presented from a European point of view....

  16. 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)

  17. 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)

  18. 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)

  19. 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)

  20. 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)

  1. 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.

  2. 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

  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

  4. 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)

  5. 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)

  6. 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

  7. 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

  8. European Trading Companies and Economic Development in the ...

    African Journals Online (AJOL)

    The paper focuses on the gradual planting of European colonial presence in the interior of the Basin through the agency of their trading companies and the activities of the African middlemen. With time, the result was the establishment of pioneer oil mills and a gradual but peaceful interaction with the rural dwellers of the ...

  9. 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

  10. 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

  11. 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.)

  12. 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

  13. North American free trade and the European situation compared.

    Science.gov (United States)

    Weintraub, S

    1992-01-01

    The author analyzes and compares the trade situation in the European Community (EC) with the North American Free Trade Agreement (NAFTA). He finds that "while both the EC and NAFTA are designed to provide trade preferences to the member countries, the two groupings differ markedly in other respects. The Treaty of Rome, establishing what is now the EC, consciously used economic means to foster political cohesion in Western Europe; whereas, the NAFTA negotiations seek free trade rather than more comprehensive economic integration precisely to minimize political content. The EC contains many social provisions absent from the NAFTA discussions, the most important of which is the right of migration from one EC country to another." The effects of NAFTA on the economy of Mexico and on Mexican migration to the United States are also assessed. excerpt

  14. Opportunities for Pellet Trade - Towards a Single European Pellet Market

    International Nuclear Information System (INIS)

    Pigaht, Maurice; Janssen, Rainer; Rutz, Dominik; Boehm, Thorsten; Vasen, Norbert; Vegas, Laura; Karapanagiotis, Nicolas

    2006-01-01

    The potential for Pellets trade in Europe was researched and assessed. Such trade is of key importance for the development of a European pellet market of sufficient supply, demand, price and quality standards. Three target markets were taken as case studies for the trade assessment: Greece, Spain and Italy. All three markets stand to profit greatly from international trade. For these markets, pellet imports could supply the basis for the development of a domestic boiler market. At the same time, pellet exports would allow the planning of larger pellet production plants. Whilst these additional costs amount to some 10-20% of the Pellets price, they are financially acceptable, especially for new markets and 'peaks' in the demand/supply of established markets

  15. The impact of Romanian adhesion to European Union on exterior trade

    OpenAIRE

    Craciunas, Diana

    2009-01-01

    Analysis of the Romanian external trade policies in European integration context underlining the external trade policy of Romania which according with European Union policies after the joining to the European Union, the improvement and adaptation of external trade policy to the European standards through internal and external measures and the commercial effect of the extensions of the European Union over non member countries of Europe and on the European Union position in the international co...

  16. 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...

  17. 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

  18. 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.

  19. 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

  20. 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

  1. Position of the European Union in the Global Trade System

    Directory of Open Access Journals (Sweden)

    Jovićević Mladen

    2017-12-01

    Full Text Available Only a few decades ago, the main drivers of globalization were the exchange of goods and capital flows, while the global trading system of today, fuelled by rapid technological changes increasingly bases itself on knowledge. The Key events - such as the use of the Internet and the increasingly important role of the rising countries economies - have contributed to a faster global exchange, but to a new nature as well. In order to illustrate the scope of the increase, perhaps it would be the best to mention the fact that in the 1970’s the share of trade in the world GDP amounted to 20%, whereas today it makes about one half. On the other hand, modern products represent compounds of raw materials, components, technologies and services originating from different areas and different continents, which has globalized the products themselves. In such conditions of the market competition, imposed by globalization and liberalization, for the European Union to remain as a leader, it had to prepare a sound and well-founded foreign policy strategy. The aim of this paper is to analyse the current position of the European Union in the global trading system, instruments of foreign trade policy, goals, foreign trade and the main challenges placed before the Union.

  2. Trade With the European Union: Recent Trends and Electronic Commerce Issues

    National Research Council Canada - National Science Library

    1999-01-01

    .... trade with the European Union (EU). As major trading partners, the United States and the EU are currently addressing several trade-related issues, including their approach to electronic commerce, or e-commerce...

  3. 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.

  4. International Emission Trading Systems: Trade Level and Political Acceptability

    DEFF Research Database (Denmark)

    Boom, J-T.; Svendsen, Gert Tinggaard

    1999-01-01

    , at the international level, industrial lobbyism was non-significant. Only the 'fossil fuel lobby' played a role. Third, at the national level, one could expect strong political opposition from industry lobbies in case quotas are actually to be distributed at firm level. But trade among countries may benefit industry...

  5. 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)

  6. 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.

  7. 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...

  8. 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

  9. The European Window: Challenges in the Negotiation of Mexico's Free Trade Agreement with the European Union

    OpenAIRE

    Sergio Gómez Lora; Jaime Zabludovsky

    2005-01-01

    On 1 July 2000 regulations to liberalize trade flows between Mexico and the European Union came into force, after more than six years of diplomatic work and complex negotiations. These regulations are part of the ¿Tratado de Libre Comercio (TLCUEM), which is also one of the components of the Agreement on Economic Association, Political Concertation and Cooperation (¿Global Agreement¿). The Global Agreement through its three components ¿ political dialogue, trade liberalization and cooperation...

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. 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

  17. 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.)

  18. The competitiveness of Slovak foreign trade in the European market

    Directory of Open Access Journals (Sweden)

    Pavličková Viera

    2013-01-01

    Full Text Available The paper deals with the competitiveness of the Slovak Republic in its ability to succeed in foreign markets. It provides a complex view of Slovak foreign trade within the European Union using a sectoral classification of products. Several appropriate methods (Constant Market Share Analysis, Revealed Comparative Advantage, Michaely Index, and unit export and import values are applied to quantify the competitiveness of Slovak foreign trade and to identify the level and trend of its specialisation. The analysis uses the data provided by the Eurostat Comext database for the period 1999-2011. The results confirmed Slovakia as a former transition country to be a fast developing open economy. Its production is competitive in the European market, although mainly with prices. Labour- and capital-intensive commodities, along with the automotive industry, dominate Slovak foreign trade. Technology- and R&D-driven goods have a comparative disadvantage as a consequence of several factors, such as lack of innovation and creativity in the business sphere. A shift towards export of more sophisticated products would be beneficial in supporting long-term sustainable development; however, no significant change in Slovak commodity structure has occurred over the past years.

  19. 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

  20. 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

  1. 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

  2. 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

  3. 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)

  4. 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)

  5. 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

  6. 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.)

  7. 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

  8. 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

  9. Central European Free Trade Agreement (CEFTA 2006 - Opportunities, Trade Relation and Evolution of Macedonian Economic Diplomacy

    Directory of Open Access Journals (Sweden)

    Krum Efremov

    2015-07-01

    Full Text Available Main activity in the foreign trade policy of the Republic of Macedonia during the past 10 years was the integration of the country on the Central European Free Trade Agreement – (CEFTA. The reason for this is the expectation that the membership of the Republic of Macedonia in CEFTA will significantly contribute to the continual efforts for strengthening the regional trade cooperation, further liberalisation of foreign trade exchange, and continuation of activities for harmonisation of trade rules with international standards. Additionally, CEFTA 2006 provides a much more comprehensive framework for development of mutual relations and economic cooperation among the countries of South Easte Europe. We will explain the concept of development of economic diplomacy in the Republic of Macedonia as a tool for supporting Macedonian economy. The purpose of these activities is to present the Republic of Macedonia as an attractive destination for foreign investments through the promotion of business advantages, and giving incentive to Macedonian export, as well as through strengthening of the country’s position as a attractive touristic destination.

  10. Natural gas opportunities, utilization and trades (in a European context)

    International Nuclear Information System (INIS)

    Corke, M.J.

    1996-01-01

    The historical development of natural gas consumption in Europe has relied heavily on requirements for space heating energy in the residential/commercial sector and for process energy and feedstock in the industrial sector. This paper reviews historical gas utilization trends and considers how these are likely to develop in the future. In addition to the above somewhat negative factors, the bright outlook for gas utilization in both large scale and small scale power and cogeneration facilities is reviewed and the implications of power industry restructuring for natural gas utilization are discussed. Finally, the outlook for overall European natural gas demand and trade is briefly considered. (author)

  11. 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.

  12. 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

  13. 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)

  14. 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

  15. Supply-chain trade and labor market outcomes : The case of the 2004 European Union enlargement

    NARCIS (Netherlands)

    Kaplan, Lennart C.; Kohl, Tristan; Martínez-Zarzoso, Inmaculada

    2018-01-01

    The structure of international trade is increasingly characterized by fragmentation of production processes and trade policy. Yet, how trade policy affects supply-chain trade is largely unexplored territory. This paper shows how the accession of 10 Central and Eastern European Countries (CEECs) to

  16. 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

  17. 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)

  18. 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

  19. 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.

  20. 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.

  1. 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.

  2. 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.

  3. 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.

  4. 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.)

  5. 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.

  6. 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

  7. 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

  8. 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...

  9. Learning architectures and negotiation of meaning in European trade unions

    Directory of Open Access Journals (Sweden)

    Linda Creanor

    2005-12-01

    Full Text Available As networked learning becomes familiar at all levels and in all sectors of education, cross-fertilisation of innovative methods can usefully inform the lifelong learning agenda. Development of the pedagogical architectures and social processes, which afford learning, is a major challenge for educators as they strive to address the varied needs of a wide range of learners. One area in which this challenge is taken very seriously is that of trade unions, where recent large-scale projects have aimed to address many of these issues at a European level. This paper describes one such project, which targeted not only online courses, but also the wider political potential of virtual communities of practice. By analysing findings in relation to Wenger's learning architecture, the paper investigates further the relationships between communities of practice and communities of learners in the trade union context. The findings suggest that a focus on these relationships rather than on the technologies that support them should inform future developments.

  10. 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

  11. 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

  12. 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.

  13. 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

  14. 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

  15. 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

  16. Cross-border electricity market effects due to price caps in an emission trading system : An agent-based approach

    NARCIS (Netherlands)

    Richstein, J.C.; Chappin, E.J.L.; De Vries, L.J.

    2014-01-01

    The recent low CO2 prices in the European Union Emission Trading Scheme (EU ETS) have triggered a discussion whether the EU ETS needs to be adjusted. We study the effects of CO2 price floors and a price ceiling on the dynamic investment pathway of two interlinked electricity markets (loosely based

  17. 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

  18. 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

  19. Trade agreements with side-effects? : European Union and United States to negotiate Transatlantic Trade and Investment Partnership

    OpenAIRE

    Mildner, Stormy-Annika; Schmucker, Claudia

    2013-01-01

    "At the G8 summit in Northern Ireland on June 17, the European Union and the United States kicked off the negotiations for a comprehensive Transatlantic Trade and Investment Partnership (TTIP) to reduce tariffs and non-tariff trade barriers. While the expected economic benefits for both sides would be more than welcome in an era of gloomy growth forecasts, a TTIP is not entirely without risks for global trade and the multilateral trading system. The talks could tie up a considerable portion o...

  20. 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.

  1. 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

  2. Report on a survey in fiscal 1999. Survey on the status of activities by European and American business enterprises related to greenhouse gas emissions trading; 1999 nendo onshitsu koka gas haishutsu ken torihiki ni kansuru Obei minkan kigyo no katsudo chosa

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2000-03-01

    Emissions trading of greenhouse gases is going to be introduced to give flexibility to the method of achieving reduction of the greenhouse gas emission established in the Kyoto Protocol. The emissions trading is an institution intended to achieve the environmental targets by using the 'market mechanism' in the environmental policies, which is expected to accomplish the effect of reducing greenhouse gas emission. The U.S.A. has adopted since 1990 the policy utilizing the emissions trading on SO2 and NOx, creating cases of successfully achieving the initial regulation targets in a short time. The history of this SO2 emissions trading showed that the emissions trading that makes the market mechanism to function can function as a policy even in the environmental policy. The representative of business enterprises working actively on this issue is BP Amco. BP Amco has started January 2000 full-fledged greenhouse gas right-to-emit institution inside the company. Among electric power companies, Ontario Power of Canada has executed about ten greenhouse gas emissions tradings yearly. Enron International has structured a system in order to participate positively in the greenhouse gas trading. (NEDO)

  3. Report on a survey in fiscal 1999. Survey on the status of activities by European and American business enterprises related to greenhouse gas emissions trading; 1999 nendo onshitsu koka gas haishutsu ken torihiki ni kansuru Obei minkan kigyo no katsudo chosa

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2000-03-01

    Emissions trading of greenhouse gases is going to be introduced to give flexibility to the method of achieving reduction of the greenhouse gas emission established in the Kyoto Protocol. The emissions trading is an institution intended to achieve the environmental targets by using the 'market mechanism' in the environmental policies, which is expected to accomplish the effect of reducing greenhouse gas emission. The U.S.A. has adopted since 1990 the policy utilizing the emissions trading on SO2 and NOx, creating cases of successfully achieving the initial regulation targets in a short time. The history of this SO2 emissions trading showed that the emissions trading that makes the market mechanism to function can function as a policy even in the environmental policy. The representative of business enterprises working actively on this issue is BP Amco. BP Amco has started January 2000 full-fledged greenhouse gas right-to-emit institution inside the company. Among electric power companies, Ontario Power of Canada has executed about ten greenhouse gas emissions tradings yearly. Enron International has structured a system in order to participate positively in the greenhouse gas trading. (NEDO)

  4. 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.

  5. 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.

  6. 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

  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, 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

  8. 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

  9. 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)

  10. 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)

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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)

  16. 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

  17. 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.

  18. 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.

  19. 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.

  20. Information report on greenhouse gas emission trading systems, in the name of the Sustainable Development and Land Management Commission

    International Nuclear Information System (INIS)

    2010-01-01

    In its first part, this report explains the choice of trading systems due to the impossibility to define taxes on carbon emissions and to the influence of international negotiations. It also describes the operation of the European system with its three allocation phases (an experimental framework between 2005 and 2007, an actually constraining framework between 2008 and 2012, and a sustainable frame from 2013), and outlines the realistic character of emission reduction objective by 2020. It identifies and discusses the weaknesses of the European system, notably due to an insufficiently regulated market and to a partial taking into account of emission. The second part identifies ways to improve the system by extending it (including new sectors, taking some particular emissions into account, and valuing carbon sequestration), by preserving the competitiveness of European industries, and by aiming at the construction of a de-carbonated Europe

  1. 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

  2. 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.

  3. 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...

  4. 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.

  5. 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....

  6. The adverse effect of real effective exchange rate change on trade balance in European transition countries

    Directory of Open Access Journals (Sweden)

    Selena Begović

    2017-12-01

    Full Text Available Most European transition countries have fixed or highly managed flexible exchange rate regimes. This exchange rate rigidity is sometimes argued to worsen the trade balance by keeping the currency overvalued. However, there is no unambiguous evidence that currency depreciation/devaluation positively affects trade balance and leads towards the adjustment, even in the short-run. Therefore, we examine the effect of real effective exchange rate (hereafter REER on trade balance in European transition economies over the period 2000-2015. By using fixed effect model for static and generalised method of moments for dynamic estimation, we find that there is an adverse effect of the REER on trade balance in European transition countries over the period 2000-2015. Namely, depreciation of REER deteriorates trade balance in European transition countries, which could be explained by high import dependence and low export capacity. This implies that policymakers in European transition countries should not use exchange rate policy to improve trade balance. This is important in the light of their accession towards European economic and monetary integration, implying that these countries should focus more on using fiscal, rather than monetary (and exchange rate, policy to adjust trade balance, which is one of the required real convergence towards the EU standards.

  7. 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.

  8. The feasibility of domestic CO2 emissions trading in Poland

    International Nuclear Information System (INIS)

    Missfeldt, F.; Hauff, J.

    2000-09-01

    In early 2000, neither a comprehensive upstream system nor an all-encompassing downstream approach to CO 2 emissions permit trading seems feasible in Poland. However, a pilot emissions trading system in the power and Combined Heat and Power (CHP) sector is thought to be a realistic option in the near future. A comprehensive upstream approach would require permits for the carbon contained in fossil fuels produced or imported in Poland. It is ruled out due to the perceived difficulties of the inclusion of the coal sector in such a system. While inclusion of the gas sector, and especially of the oil sector, seems possible within a relatively short time, relying on an upstream approach without the coal sector is not advisable. Once the restructuring of the coal sector as well as the privatization of the gas and oil sector is advanced, an upstream approach might become an option again. A comprehensive downstream approach would regulate CO 2 emissions at their source, that is mostly at point of combustion of fossil fuels. A system which includes industry, households and transport can be assumed to be infeasible. Instead, a 'core program' was examined, which would focus on power and heat generation as well as energy intensive industries. Such an approach was found feasible in principle. Currently, however, only the largest emitters could be easily integrated in a reliable system. Drawing the line between those included and those excluded from such a partial system requires careful analysis. Including all enterprises in the relevant sectors would require significant improvements in monitoring and reporting reliability. A pilot emissions permit trading system could be introduced in the professional power and heat sector. Here, awareness concerning the instrument was found to be high and the system could be based on monitoring requirements already required by law. Gradual inclusion of more relevant sectors and eventual combination with an upstream component to include oil

  9. 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

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

    Energy Technology Data Exchange (ETDEWEB)

    Steve Winkelman; Tim Hargrave; Christine Vanderlan

    1999-10-01

    The authors conclude in this report that an upstream system would ensure complete regulatory coverage of transportation sector emissions in an efficient and feasible manner, and as such represents a key component of a national least-cost GHG emissions abatement strategy. The broad coverage provided by an upstream system recommends this approach over vehicle-maker based approaches, which would not cover emissions from heavy-duty vehicles and the aviation, marine and off-road sub-sectors. The on-road fleet approach unfairly and inefficiently burdens vehicle manufacturers with responsibility for emissions that they cannot control. A new vehicles approach would exclude emissions from vehicles on the road prior to program inception. The hybrid approach faces significant technical and political complications, and it is not clear that the approach would actually change behavior among vehicle makers and users, which is its main purpose. They also note that a trading system would fail to encourage many land use and infrastructure measures that affect VMT growth and GHG emissions. They recommend that this market failure be addressed by complementing the trading system with a program specifically targeting land use- and infrastructure-related activities. A key issue that must be addressed in designing a national GHG control strategy is whether or not it is necessary to guarantee GHG reductions from the transport sector. Neither an upstream system nor a downstream approach would do so, since both would direct capital to the least-cost abatement opportunities wherever they were found. They review two reasons why it may be desirable to force transportation sector reductions: first, that the long-term response to climate change will require reductions in all sectors; and second, the many ancillary benefits associated with transportation-related, and especially VMT-related, emissions reduction activities. If policy makers find it desirable to establish transportation

  11. [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

  12. 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)

  13. Impact of the european emission trading scheme for the air transportation industry on the valuation of aircraft purchase rights; Impacto de la ley de comercio europeo de emisiones de CO{sub 2} para el sector del transporte aereo en la valoracion de los derechos de compra de aviones

    Energy Technology Data Exchange (ETDEWEB)

    Tarradellas-Espuny, J.; Salamero-Salas, A.; Martinez-Costa, C.

    2009-07-01

    The European Commission issued a legislative proposal in December 2006, suggesting a cap on CO{sub 2} emissions for all planes arriving or departing from EU airports, while allowing airlines to buy and sell pollution credits on the EU carbon market (Emission Trading Scheme, or ETS). In 2008 the new scheme got the final approval. Real options appear to be ab appropriate methodology to capture the extra value brought by the new legislation on new airplane purchase rights: The airline will surely have the purchase right to the new plane if the operation of the plane generates unused pollution credits that the airline can sell at a minimum price in the carbon market. This paper tries to determine if the impact of ETS in the valuation of aircraft purchase rights is significant enough in monetary terms to include the new legislation in a complex real-option model already proposed by the authors recently. The research concludes that even the impact of ETS justifies its inclusion in the model, the quality of the available sets of historical data still raises some questions. Particularly, the assumption of market efficiency for the Carbon Pool over the recent years needs to be treated with caution. (Author) 9 refs.

  14. 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

  15. 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

  16. 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

  17. 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

  18. The European carbon balance. Part 1: fossil fuel emissions

    NARCIS (Netherlands)

    Ciais, P.; Paris, J.D.; Marland, G.; Peylin, P.; Piao, S.L.; levin, I.; Pregger, T.; Scholz, Y.; Friedrich, R.; Rivier, L.; Houweling, S.; Schulze, E.D.

    2010-01-01

    We analyzed the magnitude, the trends and the uncertainties of fossil-fuel CO2 emissions in the European Union 25 member states (hereafter EU-25), based on emission inventories from energy-use statistics. The stability of emissions during the past decade at EU-25 scale masks decreasing trends in

  19. 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.

  20. 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...

  1. Abatement of CO{sub 2} emissions in the European Union

    Energy Technology Data Exchange (ETDEWEB)

    Lesourne, J.; Keppler, J.H.; Jaureguy-Naudin, Maite; Smeers, Yves; Bouttes, Jean-Paul; Trochet, Jean-Michel; Dassa, Francois; Neuhoff, Karsten

    2008-07-01

    This first monograph of the Ifri program on European Governance and Geopolitics of Energy is devoted to the control of carbon dioxide emissions within the European Union. Since it is almost unanimously accepted that Greenhouse Gas emissions constitute the main cause of the observed increase of the world average temperature, the system implemented by the European Union to limit and decrease the CO{sub 2} emissions is a significant pillar of the EU energy policy, the two others being the acceptance by the Member States of long-term commitments (for instance on the future share of renewable energy sources in their energy balance sheet) and the establishment of an internal market for electricity and gas. Though simple in principle, the European Union Greenhouse Gas Emission Trading Scheme (EU ETS) is in fact rather complex, and only experts really understand its merits and its deficiencies. These deficiencies are real and will have to be corrected in the future for the system to be effective. At this moment, when the 2005-2007 trial phase of the EU ETS is ending, the monograph has the purpose to stimulate the discussion between experts and to enable all those interested in the topic to understand the issues and to take part in the public debates on the subject. The monograph contains five papers: - 'An Overview of the CO{sub 2} Emission Control System in the European Union' by Jacques Lesourne and Maite Jaureguy-Naudin. - 'Description and Assessment of EU CO{sub 2} Regulations' by Yves Smeers. - 'Assessment of EU CO{sub 2} Regulations' by Jean-Paul Bouttes, Jean-Michel Trochet and Francois Dassa. - 'Investment in Low Carbon Technologies, Policies for the Power Sector' by Karsten Neuhoff. - 'Lessons Learned from the 2005-2007 Trial Phase of the EU Emission Trading System' by Jan Horst Keppler

  2. 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

  3. Distance, Transaction Costs, and Preferences in European Trade

    DEFF Research Database (Denmark)

    Kokko, Ari; Tingvall, Patrik Gustavsson

    2014-01-01

    Beckerman (1956) and Linder (1961) have suggested that international trade is not determined by supply-side factors alone—perceptions about foreign countries and country preferences matter. We explore the relation between exports, cultural distance, and country preferences in Europe. The results ...... channels, both indirectly through transaction costs and more directly, as countries seem to prefer some trade partners before others....

  4. 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.

  5. 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

  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. 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.

  8. 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

  9. 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.

  10. 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.

  11. 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.

  12. 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)

  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. Economic Growth and CO2 Emissions in the European Union

    International Nuclear Information System (INIS)

    Bengochea-Morancho, A.; Martinez-Zarzoso, I.; Higon-Tamarit, F.

    2001-01-01

    This paper examines the relationship between economic growth and CO 2 emissions in the European Union. A panel data analysis for the period 1981 to 1995 is applied in order to estimate the relationship between Gross Domestic Product (GDP) growth and CO 2 emissions in ten selected European countries. The analysis shows important disparities between the most industrialised countries and the rest. The results do not seem to support a uniform policy to control emissions; they rather indicate that a reduction in emissions should be achieved by taking into account the specific economic situation and the industrial structure of each EU member state. 20 refs

  15. Options of biofuel trade from Central and Eastern to Western European countries

    NARCIS (Netherlands)

    van Dam, J.; Faaij, A.P.C.; Lewandowski, I.M.; Van Zeebroeck, B.

    2009-01-01

    Central and Eastern European countries (CEEC) have a substantial biomass production and export potential. The objective of this study is to assess whether the market for biofuels and trade can be profitable enough to realize a supply of biofuels from the CEEC to the European market and to estimate

  16. Analysis of Ukraine’s foreign trade turnover in context of free trade zone with European Union

    Directory of Open Access Journals (Sweden)

    К.Shymanska

    2016-06-01

    Full Text Available The implementation of the free trade zone between Ukraine and the European Union has many advantages and disadvantages for our country. The changes in Ukraine’s economic integration vector cause much dispute about its prospects and profitability. Nevertheless, the strengthening of economic and political crisis leads to the reduction in foreign trade of Ukraine with the EU. Although in recent years, many institutional limitations for the Ukrainian producers’ entrance to European markets have been removed. The analysis of Ukraine's foreign trade turnover with EU countries showed the indicators of exports and imports structure in the partner countries and allowed to reveal decreasing of intensity of these operations. This can be a negative indicator of activities for the implementation of the Association Agreement with the EU. The study has formulated the perspective directions of foreign trade policy of Ukraine, in particular with respect to the modernization of informational and technical support of the customs clearance of the goods movement, increasing control over the quality of Ukrainian goods and opportunities for the small and mediumsized entities entrance to the European markets.

  17. THE FREE TRADE AGREEMENTS BETWEEN THE EUROPEAN UNION AND LATIN AMERICA. THE PERUVIAN AND MEXICAN CASE

    Directory of Open Access Journals (Sweden)

    Antonio Manrique de LUNA BARRIOS

    2015-07-01

    Full Text Available The European Union has signed a number of free trade agreements with different countries in Latin America because it is aware of the great importance that this region has gained as a destination for its exports and investments. Furthermore, the European Union wishes to reaffirm its ties with countries in the region because it hopes to consolidate its political and economic position as an international player with its presence in those markets. In this paper we will discuss the free trade agreements that the EU has signed with Mexico and later with Peru, because they are two examples where Latin American countries have achieved significant economic growth and where the trade has generated significant benefits. Additionally they are two major trading partners of the European Union and they have allowed the EU to continue to expand its zone of influence in Latin America.

  18. 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...

  19. 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)

  20. Why Does Emissions Trading under the EU ETS Not Affect Firms' Competitiveness? Empirical Findings from the Literature

    OpenAIRE

    Joltreau, Eugénie; Sommerfeld, Katrin

    2017-01-01

    Environmental policies may have important consequences for firms’ competitiveness or profitability. However, the empirical literature shows that hardly any statistically significant effects on firms can be detected for the European Union Emissions Trading Scheme (EU ETS). On the basis of existing literature, we focus on potential explanations for why the empirical literature finds hardly any significant competitiveness effects on firms, least not during the first two phases of the scheme (...

  1. 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)

  2. 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.

  3. Cross-Country Electricity Trade, Renewable Energy and European Transmission Infrastructure Policy

    OpenAIRE

    Abrell, Jan; Rausch, Sebastian

    2016-01-01

    This paper develops a multi-country multi-sector general equilibrium model, integrating high-frequency electricity dispatch and trade decisions, to study the e ects of electricity transmission infrastructure (TI) expansion and re- newable energy (RE) penetration in Europe for gains from trade and carbon dioxide emissions in the power sector. TI can bene t or degrade environ- mental outcomes, depending on RE penetration: it complements emissions abatement by mitigating dispatch problems associ...

  4. 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

  5. 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.

  6. THE INTERNATIONAL TRADE IN GOODS OF THE EUROPEAN UNION MEMBER STATES AFTER TWO YEARS OF CRISIS

    Directory of Open Access Journals (Sweden)

    Babucea Ana-Gabriela

    2011-12-01

    Full Text Available In the context of globalization, more countries, rich and poor alike, enter global markets and are forced to face fierce competition. The European Union is the largest trading power in the world, accounting for 20% of total imports and exports worldwide. In recent years EU trade in goods has evolved very positively both in absolute terms and relative. As was expected, the global economic crisis dramatically affected trade flows globally and regionally and inevitably affected the trade of the EU through a tumultuous period. Time analysis will show that reducing the volume of EU trade is in line with the decreases in global trade and regional registered and that exports were affected differently.

  7. 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.

  8. 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

  9. Greenhouse gas emission trading schemes: a new tool for the environmental regulator's kit

    International Nuclear Information System (INIS)

    Soleille, Sebastien

    2006-01-01

    As the European Union greenhouse gas emission trading scheme (ETS) is emerging, it seems interesting to look back on previous experiments and to bring together a few elements of reflection about the pertinence of ETS as a new policy tool to regulate industrial pollution. So far, several regulatory tools have been used to decrease pollution. This article focuses on two of them, command-and-control (CAC) and ETS. There is no simple answer to which one is more efficient. It depends strongly on the context. Given a few elements outlined in this paper, the choice of an ETS to abate industrial emissions of greenhouse gases in the European Union (EU) can be considered pertinent. But, ultimately, what makes a scheme environmentally efficient is not the tool in itself (ETS or CAC) but the ambition of the target. Hence the design of the National Allocation Plans setting the emission caps are of paramount importance. They will make the EU ETS either a useless mess or an effective climate change mitigation policy tool

  10. 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

    . Closer examination of the practical implementation of the European Union Emissions Trading Scheme (EU ETS) shows very clearly that substantial differences to an ideal type of emissions trading scheme have to be taken into account, which can or should only be eliminated in the longer term or, for practical reasons, not at all. Further, analysis of the market development of the EU ETS up to now demonstrates that a strategic, robustly developed climate policy which meets the ambitiousness described also has to factor in the possibility that an emissions trading scheme cannot produce any long-term scarcity signals for different reasons (e.g. continual opportunities for revision in democratic systems, operational realities) and can thus always only serve the - essential - purpose of clearing emission reduction options close to the market which are available in the short to medium term.

  11. Examination of forest products trade between Turkey and European ...

    African Journals Online (AJOL)

    USER

    2010-04-19

    Apr 19, 2010 ... effectively use their resources in the economic aspect. Recently, a lot of ... big power in the economic and trade area, evaluated the current ..... Spain. 1.20 7.54 9.05. Sweden. 1.45 5.84 8.50. United Kingdom 1.13 8.83 9.96.

  12. 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

  13. 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)

  14. 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)

  15. 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...

  16. An emission inventory for the central European initiative 1988

    Science.gov (United States)

    Klimont, Z.; Amann, M.; Cofala, J.; Gyárfáŝ, F.; Klaassen, G.; Schöpp, W.

    This paper presents the first consistent inventory of emission of sulphur dioxide (SO 2), nitrogen oxides (NO x), particulate matter (PM), and carbon dioxide (CO 2), for the countries co-operating in the Central European Initiative: Austria, Croatia, Czechoslovakia, Hungary, Italy, Poland and Slovenia. The inventory is based on national and regional statistics as well as on information received from collaborating institutions. National data has been verified and converted into a common format, consistent with the database used by the European Environmental Agency and the European Community (the "CORINAIR" system). The inventory describes emissions in the year 1988, before the restructuring process began in former socialist economies. Data has been collected on the national level, for administrational units and for large point sources. The database on point sources contains specific information on 400 large plants in the region (e.g. capacity, commissioning year, fuel use, production, etc.). Total emissions of SO 2 in the CEI region in 1988 were 10.3 million tons, which accounts for 25% of total European SO 2 emissions. The highest emission densities (more than 100 t km -2) are found in Northern Bohemia (Czech Republic) and Upper Silesia (Poland). The overwhelming majority of SO 2 emissions (70%) originates from combustion of domestic (brown and hard) coal. Across the region, 60% of SO 2 is emitted from the large point sources identified in the study and over 60% of SO 2 emissions from public power plants in the CEI region is produced in plants older than 20 years.

  17. 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

  18. 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

  19. 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

  20. Opportunities and Prospects of Trade Development between Romania and the Russian Federation in the European Context

    Directory of Open Access Journals (Sweden)

    Virginia Câmpeanu

    2010-10-01

    Full Text Available The present paper has as main objective the analysis of the opportunities and development perspectives of the trade relationship between Romania and the Russian Federation, linked to the latest evolutions of the European and global economic context. Keeping in mind this objective, our paper is structured around three main sections, as follows. The first part, “Economic Context of Romania-Russian Federation Trade Development” is centered upon the global crisis and its effects on the EU, Romania and Russia as well as the EU-Russia increasing bilateral merchandise trade flows. We examine how the global economic crisis interrupted increasing merchandise trade between EU-27 and the Russian Federation and present the main exporter countries from the EU-27 to Russia and the major EU importers from Russia and analyze in a comparative manner the very concentrated trade pattern between EU-27 and Russia. In the next section, “Romania-Russia Trade Development”, we underline that the Russian Federation is the second extra-EU trading partner of our country. We explore Romania’s trade relationship with Russia during pre and post accession to the European Union and also the actual trends of the bilateral trade, which pattern is extremely concentrated. In the last section, “Opportunities and Prospects for the Trade Development between Romania and Russian Federation”, we conclude, on the basis of the comparative and prospective analysis, that: Romania could be well positioned on Russian markets; there are many similarities in competitiveness characteristics of our countries; Romania and Russia have some problematic factors in doing business; strong points of the Romanian manufacturing industry could lead to the diversification of trade pattern and, finally, Romania has the possibility to develop a strong economic partnership with the Russian Federation under the framework of the EU-Russia relationship.

  1. Poland's Services Trade with the European Union During the Preaccession Period

    OpenAIRE

    Dariusz Mongiało

    2004-01-01

    The fact that, since 1 May 2004, Poland has the status of European Union member involves certain consequences for Poland's competitiveness in the international services trade market. What competitive position will Poland finally occupy among the EU countries in the postaccession period will to a large extent depend on Poland's present position in the services trade with the EU countries. So, the paper tries to present, on the basis of the most recent available statistical data published by th...

  2. Russian and European gas interdependence: Could contractual trade channel geopolitics?

    International Nuclear Information System (INIS)

    Finon, Dominique; Locatelli, Catherine

    2008-01-01

    In a framework of international political economics, this article analyses the increasing distance between Russia and the European Union (EU) in their interdependent relationship with regard to gas. The representations of economic risks associated with the dominant position of the Russian seller in the European gas market are analysed in terms of industrial economics. Then the relevance of possible responses by the EU is analysed in relation to the reality of alleged risks of gas dependence: the tentative EU-Russia regulatory unification, the creation of a single gas negotiator, and the support to a denser pan-European network, with additional entry points and sources of supply and increased market integration in order to increase the contestability of the markets

  3. The Trans-Atlantic Trade and Investment Partnership – A Challenge for the European Union?

    Directory of Open Access Journals (Sweden)

    Oana–Antonia Colibășanu

    2015-06-01

    Full Text Available Since the early 2000s, the United States and European Union have discussed the development of bilateral and regional trade agreements. The TTIP – Trans-Atlantic Trade and Investment Partnership was announced in February 2013 and is currently under negotiation. The initiative aims at establishing a trade agreement between the two blocs, removing all trade barriers, including the non-tariff ones, in a wide range of economic sectors. The paper looks at several key elements that the bilateral negotiations are set to challenge from the European Union perspective. We focus on the main causes for resistance within the EU towards establishing the agreement, seeking to understand the future framework for international trade for the European states. While the EU continues integration to establish a functioning internal market, still continuing the process of diminishing and eliminating non-tariff barriers among the member states, we examine whether liberalisation of trade and investment between the US and the EU will benefit the EU as a whole, considering the current socio-economic trends at the Union’s level.

  4. 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

  5. The European Dioxin Emission Inventory. Stage II. Final report

    Energy Technology Data Exchange (ETDEWEB)

    Quass, U.; Fermann, M.; Broeker, G.

    2001-07-01

    For Stage II of the European Dioxin Project the following objectives were set: - Amendment of existing emission data collected for most relevant emission sources in order to reduce uncertainties of emission estimates. Collecting first emission data from countries not yet performing dioxin emission measurement programs. Extending the inventory of dioxin emissions to ambient air produced in Stage I by a complementary study on emissions to land and water. Extending the regional scope of data collection to countries in Central Europe. The report of Stage II of the European Dioxin Project is presented in 3 Volumes. Volume 1 contains an overview on the background and approach of different activities carried out and on the results obtained. These results are put into a broader view regarding the dioxin reduction measures in Europe leading to conclusions and recommendation for future work. Volume 2 of the report contains a detailed presentation of the sub-projects carried out. The chapters of Volume 2 are structured in a similar manner and start with a short summary in order to allow for a fast cross-reading. In the case of the desk-top studies an overview of the main results or statements is given. Regarding emission measurements details on the experimental set-up and the facilities being investigated are presented. Volume 3 contains a re-evaluation of the dioxin emission inventory presented for the most relevant sources types in the Stage I report. New data gathered from the projects of Stage II as well as from independent activities in the European countries are considered for a revision of the 1995 emission estimates. Additionally, based on current trends and activities the PCDD/F emissions for the years 2000 and 2005 are estimated. Finally, an attempt is made to evaluate the PCDD/F emission reduction rates which might be possible to achieve by the year 2005 compared to 1985. (orig.)

  6. 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

  7. 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...

  8. Romania’s foreign trade with the European Union in 2008

    Directory of Open Access Journals (Sweden)

    Ancuta Stangaciu

    2010-12-01

    Full Text Available In this study, I proposed to analyze the spatial concentration of international trade flows between Romania and the European Union both overall and by the sections of the Combined Nomenclature. Using statistical analysis methods such as square and Gini’s index or Onicescu informational energy, I concluded that Romania’s main trade partners are Italy, Germany and France and trade relations with these 3 countries are characterized by exchanges of good to cover, generally a wide range of products.

  9. Risk-Return Trade-Off for European Stock Markets

    DEFF Research Database (Denmark)

    Aslanidis, Nektarios; Christiansen, Charlotte; Savva, Christos S.

    This paper adopts dynamic factor models with macro-finance predictors to revisit the intertemporal risk-return relation in five large European stock markets. We identify country specific, Euro area, and global factors to determine the conditional moments of returns considering the role of higher...

  10. 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

  11. The competences of European Union institutions in the trade policy (Lisbon Treaty

    Directory of Open Access Journals (Sweden)

    Margareta Timbur

    2010-12-01

    Full Text Available The European Union is the best known at the world’s leading trade power and the common trade policy is the core of EU external relations. The events of the last years and the extension of the EU to 27 member proved that the functioning system could no longer continue and was requiring a new institutional framework. The Lisbon Treaty was the right solution. It purposes are to bring changes for the citizens, institutions, external relations foe the consolidation of democracy in EU. This paper attempts to provide an overview of the major revisions introduced by the Treaty of Lisbon regarding the trade policy. Also, it analyses the extension and clarification of EU competence, the greater role of the European Parliament and the inclusion of investment policy in trade policy, the voting rules in trade area and the international negotiation of trade agreements. The study describes, as well, the impact of Lisbon Treaty implementation on the MS which are independent nations, but without power of decision in the common trade policy.

  12. 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

  13. 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

  14. 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.

  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. Risk-Return Trade-Off for European Stock Markets

    OpenAIRE

    Aslanidis, Nektarios; Christiansen, Charlotte; Savva, Christos S.

    2015-01-01

    This paper adopts dynamic factor models with macro-finance predictors to revisit the intertemporal risk-return relation in five large European stock markets. We identify country specific, Euro area, and global factors to determine the conditional moments of returns considering the role of higher-order moments as additional measures of risk. The preferred combination of factors varies across countries. In the linear model, there is a strong but negative relation between conditional returns and...

  17. Study Trade-Offs on Future European Expendable Launchers

    OpenAIRE

    Sippel, Martin; van Foreest, Arnold; Philip, Peter; Jäger, Markus

    2009-01-01

    The paper describes latest results of recent activities in Germany in the technical assessment of future European launcher architecture. In a joint effort of DLR-SART with German launcher indus-try a next generation upper-medium class expendable TSTO and options for new liquid fuel upper stages for the small VEGA-launcher are addressed. The WOTAN study has investigated fully cryogenic launchers as well as those with a combination of solid and cryogenic stages, fulfilling a requirement of a...

  18. Mapping the Teaching of Laboratory Animal Science and Medicine in the European Union and European Free Trade Area.

    Science.gov (United States)

    Iatridou, Despoina; Nagy, Zsuzsanna; De Briyne, Nancy; Saunders, Jimmy; Bravo, Ana

    2018-06-13

    Developing a common market and allowing free movement of goods, services, and people is one of the main objectives of the European Union (EU) and the European Free Trade Area. In the field of scientific research, Directive 2010/63/EU on the protection of animals used for scientific purposes aims to improve the welfare of laboratory animals by following the principle of the 3Rs (replacement, reduction, and refinement). Each breeder, supplier, and user must appoint a designated veterinarian to advise on the well-being and treatment of the animals. In our report we investigate how the undergraduate veterinary curriculum prepares future veterinarians for the role of designated veterinarian, by analyzing data from 77 European veterinary education establishments. Over 80% of them provide training in laboratory animal science and medicine in their curriculum. All countries in the EU and the European Free Trade Area, having national veterinary schools, include such training in the curriculum of at least one of their establishments. Laboratory animal science and medicine courses can be obligatory or elective and are often part of more than one subject in the veterinary curricula. Post-graduate courses or programs are available at more than 50% of those veterinary schools. Most authorities in the European region consider graduate veterinarians ready to seek the role as designated veterinarian immediately after graduation.

  19. 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

  20. Trade and production fragmentation : Central European economies in European Union networks of production and marketing

    OpenAIRE

    Kaminski, Bartlomiej; Ng, Francis

    2001-01-01

    Developments driven by trade liberalization and tehcnological progress mean that old development strategies, based on state intervention and trade protection, no longer work. Global competition has brought a growing emphasis on product standards, rapid innovation, adaptability, and speedy response. Technology has made possible the fragmentation of production. Firms that become part of glob...

  1. European Trade – Where is Going? Retail Entertainment

    Directory of Open Access Journals (Sweden)

    Viorica JELEV

    2017-12-01

    Full Text Available As competition grows, brand manager imagination needs to work, and sales growth solutions need to focus on customer focus attention. It is a difficult task if all brands offer discounts in the malls they are in, and the announcement of differentiation is put to the attention of specialists who offer solutions for fun of any kind for the clients. The article aims to present the evolution of world trade in recent years and the various ways of diversion invented by retailers to keep customers in store chains longer for them to buy more. I will also present the off-line consumer profile, as found in the specialty studies and the adaptation of the entertainment methods according to these shoper typologies. The conclusion of this article will focus on what the link between entertaiment and retail is, the new concept of RETAILTAIMENT that leads to increased sales and profits of economic agents.

  2. European External Trade Policy: The Role of Ideas in German Preference Formation - www-publication

    NARCIS (Netherlands)

    Alons, G.C.

    2013-01-01

    In the literature examining European Union external trade policy, the relative influence of the Commission, the member states and interest groups are an issue of ongoing debate. This article will argue that member states can still play an important role and that a focus on member state preferences

  3. Development of a tool to model European biomass trade : Report for IEA Bioenergy Task 40

    NARCIS (Netherlands)

    Hoefnagels, E.T.A.; Junginger, H.M.; Resch, G.; Matzenberger, J.; Panzer, C.; Pelkmans, L.

    2011-01-01

    This report investigated the potential of future intra- and inter-European trade of solid biomass for bioenergy purposes taking country to country specific intermodal transport routes into account and matching supply and demand for energy crops, forestry products and residues and agricultural

  4. The World Trade Organization and the European Union

    DEFF Research Database (Denmark)

    Mortensen, Jens Ladefoged

    2008-01-01

    developments within foreign policy, this volume adopts a novel perspective on the EU as an international player. Seeking to move the focus of study beyond the European Union as itself an international organization, contributors set out to demonstrate EU aspirations to act within international organizations.......Analysing the way in which the EU engages in some of the most important international organizations, this book outlines a framework for analysis within this thriving subject of study. By demonstrating how the EU supports ‘effective multilateralism' and global governance, as well as furthering...

  5. Exchange Rate and Trade: J-curve in European Union

    Directory of Open Access Journals (Sweden)

    Dan Lupu

    2014-06-01

    Full Text Available The EU economy is experiencing a severe recession amid the global crisis, and although in other regions began to appear mild signs of recovery, in EU countries are recorded a continuously worsening. In many European states, the economic contraction is a consequence of the decrease in net exports component of GDP. The aim of the article is to analyze the situation in which the EU chooses to devalue its currency to increase exports. We found that, the depreciation of the Euro, has no influence on exports and that in EU, it is not expressed a J-curve effects.

  6. 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.

  7. 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

  8. 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.

  9. 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)

  10. 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.

  11. 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.

  12. 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.

  13. 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.

  14. 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)

  15. 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)

  16. New trends in emission control in the European Union

    CERN Document Server

    Merkisz, Jerzy; Radzimirski, Stanislaw

    2014-01-01

    This book discusses recent changes in the European legislation for exhaust emissions from motor vehicles. It starts with a comprehensive explanation of both the structure and range of applicability of new regulations, such as Euro 5 and Euro 6 for light-duty vehicles and Euro VI for heavy-duty vehicles. Then it introduces the most important issues in in-service conformity and conformity of production for vehicles, describing the latest procedures for performing exhaust emissions tests under both bench and operating conditions. Subsequently, it reports on portable emission measurement systems (PEMS) and their application for assessing the emissions of gaseous and particulate matter alike, under actual operating conditions and in all transport modes. Lastly, the book presents selected findings from exhaust emissions research on engines for a variety of transport vehicles, such as light-duty and heavy-duty vehicles, as well as non-road vehicles, which include farm tractors, groundwork and forest machinery, diese...

  17. Revision of the European trading scheme. Business views

    International Nuclear Information System (INIS)

    2007-06-01

    Created in 1992, Entreprises pour l'Environnement (EpE) is an association of large companies which have gathered to progress together in integrating environment in the strategy and daily management. Its members are companies from various sectors from industry and services, including energy intensive industries, energy producers, financial service providers, among others. EpE serves as a think tank for its members, whose experience is brought as the main feed for thoughts. Climate change has been one of the major topics for many years, and EpE has been the first circle where market-based solutions have been discussed in France. In 2002, EpE initiated the creation of AERES (www.aeres-asso.org), a group of industrial companies who made voluntary reduction commitments on the six greenhouse gases of the Kyoto protocol and have been since measuring, verifying and publishing how they stick to this commitment. In addition, many of the EpE members are directly active on the ETS carbon market, whether as financial actors or compliance users, power producer or energy-intensive industrial international groups, and the association has dedicated significant work to the analysis of the first years of operation of this market as well as discussion on future commitments and/or processes / approaches This document results from this work. It encompasses notes on: - predictability for regulators and clear visibility to industry's investments; - auctioning process; - the need for a market authority on the European carbon market; - allocation mechanisms. The document provides a summary of this material. In many instances it presents a choice that can only be made by political decision. Its purpose is to express views on such political choices stakes and consequences. These notes are based on the experience from the first period, as well as discussions among EpE members for future approaches. This contribution should be viewed as a contribution to the European dialogue on this

  18. 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)

  19. 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

  20. Impact of renewables deployment on the CO2 price and the CO2 emissions in the European electricity sector

    International Nuclear Information System (INIS)

    Van den Bergh, Kenneth; Delarue, Erik; D'haeseleer, William

    2013-01-01

    As of 2005, electricity generators in Europe operate under the European Union Emission Trading System (EU ETS). At the same time, European Member States have launched support mechanisms to stimulate the deployment of renewable electricity sources (RES-E). RES-E injections displace CO 2 emissions within the sectors operating under the EU ETS and they reduce the demand for European Union Allowances (EUAs), thereby reducing the EUA price. This paper presents the results of an ex post analysis to quantify the impact of RES-E deployment on the EUA price and CO 2 emissions in the Western and Southern European electricity sector during the period from 2007 to 2010, following from an operational partial equilibrium model of the electricity sector. This study shows that the CO 2 displacement from the electricity sector to other ETS sectors due to RES-E deployment can be up to more than 10% of historical CO 2 emissions in the electricity sector. The EUA price decrease caused by RES-E deployment turns out to be likely significant. - Author-Highlights: • We assessed the impact of renewables deployment in the period 2007–2010. • Impact on CO 2 emissions in the electricity sector and the CO 2 price is considered. • CO 2 emissions decreased by up to 10% of historical emissions. • CO 2 price decrease due to renewables turns out to be likely significant

  1. 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.

  2. 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

  3. 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.

  4. 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

  5. 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

  6. North European Understanding of Zero Energy/Emission Buildings

    DEFF Research Database (Denmark)

    Marszal, Anna Joanna; Bourrelle, J. S.; Nieminen, J.

    2010-01-01

    countries are still to adopt a national definition for these types of buildings. This results often in more than one understanding of ZEBs in each country. This study provides a concise source of information on the north European understanding of zero energy/emission buildings. It puts forward a number......The worldwide CO2 emission mitigation efforts, the growing energy resource shortage and the fact that buildings are responsible for a large share of the world’s primary energy use drives research towards new building concepts, in particular Zero Energy/Emission Buildings (ZEBs). Unfortunately...... may observe a correlation between the zero energy/emission building approach adopted by a country and this particular country’s utility grid characteristics. Moreover, it is to be noted that the ZEB concept is not well defined at the national level in northern Europe and that all of the participating...

  7. A Dragon and a Dove? A Comparative Overview of Chinese and European Trade Relations with Sub-Saharan Africa

    Directory of Open Access Journals (Sweden)

    Bert Jacobs

    2011-01-01

    Full Text Available As China’s footprint in African trade grows larger by the day, the need to contextualize this rise through comparative analysis becomes ever more necessary. This paper contrasts the sub-Saharan trade relations of both China and Europe with their respective designated stereotypes: those of a dragon and a dove. The article compares the trade dynamics on four levels: the policies and institutional mechanisms that shape the relationship; the composition of the trade flows; the geographic distribution of trade dominance; and the influence of norms and values on the trade pattern. It concludes that although there are empirical grounds behind these stereotypes, Chinese and European trade relations with sub-Saharan Africa are becoming more similar, partly due to a more hawkish European stance.

  8. 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...

  9. 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 ...

  10. 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.

  11. 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.

  12. Muslim and European Perceptions of Oceanic "Trade" in the Fifteenth and Sixteenth Centuries and their Implications for International Politics

    Directory of Open Access Journals (Sweden)

    Abdullah al-Ahsan

    1999-12-01

    Full Text Available In the fifteenth and sixteenth centuries Muslim and European powers perceived the importance of oceanic trade routes differently. During this earliest phase of European colonial expansion, Muslim powers, particularly the Osmanlis who claimed to be the champion of Islam, did not consider the loss of oceanic trade routes to Europeans a serious threat to Muslim interests. However, this gradually led not only to the loss of trade which was once dominated by Mus1im merchants, but might have contributed to the total disappearance of Muslim powers from their supremacy of world politics later in history.

  13. 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.

  14. 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)

  15. 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)

  16. Prediction of Pig Trade Movements in Different European Production Systems Using Exponential Random Graph Models.

    Science.gov (United States)

    Relun, Anne; Grosbois, Vladimir; Alexandrov, Tsviatko; Sánchez-Vizcaíno, Jose M; Waret-Szkuta, Agnes; Molia, Sophie; Etter, Eric Marcel Charles; Martínez-López, Beatriz

    2017-01-01

    In most European countries, data regarding movements of live animals are routinely collected and can greatly aid predictive epidemic modeling. However, the use of complete movements' dataset to conduct policy-relevant predictions has been so far limited by the massive amount of data that have to be processed (e.g., in intensive commercial systems) or the restricted availability of timely and updated records on animal movements (e.g., in areas where small-scale or extensive production is predominant). The aim of this study was to use exponential random graph models (ERGMs) to reproduce, understand, and predict pig trade networks in different European production systems. Three trade networks were built by aggregating movements of pig batches among premises (farms and trade operators) over 2011 in Bulgaria, Extremadura (Spain), and Côtes-d'Armor (France), where small-scale, extensive, and intensive pig production are predominant, respectively. Three ERGMs were fitted to each network with various demographic and geographic attributes of the nodes as well as six internal network configurations. Several statistical and graphical diagnostic methods were applied to assess the goodness of fit of the models. For all systems, both exogenous (attribute-based) and endogenous (network-based) processes appeared to govern the structure of pig trade network, and neither alone were capable of capturing all aspects of the network structure. Geographic mixing patterns strongly structured pig trade organization in the small-scale production system, whereas belonging to the same company or keeping pigs in the same housing system appeared to be key drivers of pig trade, in intensive and extensive production systems, respectively. Heterogeneous mixing between types of production also explained a part of network structure, whichever production system considered. Limited information is thus needed to capture most of the global structure of pig trade networks. Such findings will be useful

  17. Agricultural Trade Restrictiveness in the European Union and the United States

    OpenAIRE

    Jean-Christophe Bureau; Luca Salvatici

    2001-01-01

    The paper provides a summary measure of the Uruguay Round tariff reduction commitments in the European Union and the United States, using the Mercantilistic Trade Restrictiveness Index (MTRI) as the tariff aggregator. We compute the index for agricultural commodity aggregates assuming a specific (Constant Elasticity of Substitution) functional form for import demand. The levels of the MTRI under the actual commitments of the Uruguay Round are computed and compared with two hypothetical cases,...

  18. Bank regulatory Capital Buffer and Liquidity: Evidence from US and European Publicly Traded Banks

    OpenAIRE

    Distinguin , Isabelle; Roulet , Caroline; Tarazi , Amine

    2012-01-01

    The theory of financial intermediation highlights various channels through which capital and liquidity are interrelated. Using a simultaneous equations framework, we investigate the relationship between bank regulatory capital buffer and liquidity for European and U.S. publicly traded commercial banks. Previous research studying the determinants of bank capital buffer has neglected the role of liquidity. On the whole, we find that banks do not strengthen their regulatory capital buffer when t...

  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. Wood energy and European trade patterns: why Sweden is the No. 1 biofuel importer in Europe

    International Nuclear Information System (INIS)

    Hillring, B.; Vinterbaeck, J.

    1999-01-01

    A high tax on fossil fuels in Sweden and more extensive waste legislation in some densely populated European countries, e.g., Germany and the Netherlands, explain why the Swedish imports of wood-fuels and recycled wood-fuels have increased dramatically in the past few years. The industrial use of wood-fuels is strongly dependent on prices of competitive fuels, i.e., fossil fuels, but it is also affected by policy instruments. Energy policies have up to now mainly been national. The expected common energy policy of the European Union, stated in the EU white paper, will have important influences on biofuel trade. Sweden experienced a massive development of district heating systems during the last 20 years. Mainly due to the tax system's carbon dioxide tax, wood-fuels compete successfully on this market with fossil fuels and other untaxed biofuels. Imports help replace fossil fuels. This study, which is a follow-up of a 1993 trade study, examines the forces that drive the increasing biofuel trade in Europe and analyzes the Swedish trade in biofuels. In 1997 imports amounted to 15-24 PJ which is about one fourth of the total biofuel consumed by Swedish district heating and about three times that projected in earlier studies. Out of this, about half was classified as wood-fuels. (author)

  1. 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)

  2. 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.

  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. Unilateral regulation of bilateral trade in greenhouse gas emission permits

    NARCIS (Netherlands)

    Rehdanz, K.; Tol, R.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

  5. 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

  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. 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...

  8. 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)

  9. The ARTEMIS European driving cycles for measuring car pollutant emissions.

    Science.gov (United States)

    André, Michel

    2004-12-01

    In the past 10 years, various work has been undertaken to collect data on the actual driving of European cars and to derive representative real-world driving cycles. A compilation and synthesis of this work is provided in this paper. In the frame of the European research project: ARTEMIS, this work has been considered to derive a set of reference driving cycles. The main objectives were as follows: to derive a common set of reference real-world driving cycles to be used in the frame of the ARTEMIS project but also in the frame of on-going national campaigns of pollutant emission measurements, to ensure the compatibility and integration of all the resulting emission data in the European systems of emission inventory; to ensure and validate the representativity of the database and driving cycles by comparing and taking into account all the available data regarding driving conditions; to include in three real-world driving cycles (urban, rural road and motorway) the diversity of the observed driving conditions, within sub-cycles allowing a disaggregation of the emissions according to more specific driving conditions (congested and free-flow urban). Such driving cycles present a real advantage as they are derived from a large database, using a methodology that was widely discussed and approved. In the main, these ARTEMIS driving cycles were designed using the available data, and the method of analysis was based to some extent on previous work. Specific steps were implemented. The study includes characterisation of driving conditions and vehicle uses. Starting conditions and gearbox use are also taken into account.

  10. 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.

  11. 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

  12. 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

  13. 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

  14. 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.

  15. 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.

  16. 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

  17. 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.

  18. 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...

  19. 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

  20. 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

  1. 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

  2. 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.

  3. 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.

  4. 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

  5. Baltic Pathways from Liberal Trade Model to Neo-Mercantilism in the European Union

    Directory of Open Access Journals (Sweden)

    Viljar Veebel

    2015-09-01

    Full Text Available The economic progress of the Baltic States after the restoration of independence has been closely related to the liberal ideology and values of their economies: openness to investments, simple tax system and low tax burden, liberal trade policy, and flexible labour market. Unlike the Baltic States, some of their main partners in the European Union (EU have focused on promoting their economic growth by the neo-mercantilist way of expanding exports, supported by the economic structure of these countries exporting high technology and capital goods. As a result, when the Baltic States are expecting that in a broader context the other eu member states share the same vision of the liberal market economy, their motives have not been fully understood among their regional trade and cooperation partners. Current study will debate whether the practical implementation and needs of the European neo-mercantilism meet the economic and social needs of the Baltic States. Additionally, the study focuses on the question whether in practice the Baltic countries should be ready for the European neo-mercantilist project in upcoming years.

  6. Understanding the differing governance of EU emissions trading and renewable: feedback mechanisms and policy entrepreneurs

    Energy Technology Data Exchange (ETDEWEB)

    Boasson, Elin Lerum; Wettestad, Joergen

    2010-04-15

    This paper presents a comparative study of two central EU climate policies: the revised Emissions Trading System (ETS), and the revised Renewable Energy Directive (RES). Both were originally developed in the early 2000s and revised policies were adopted in December 2008. While the ETS from 2013 on will have a quite centralized and market-streamlined design, the revised RES stands forward as a more decentralized and technology-focused policy. Differing institutional feed-back mechanisms and related roles of policy entrepreneurs can shed considerable light on these policy differences. Due to member states' cautiousness and contrary to the preferences of the Commission, the initial ETS was designed as a rather decentralized and 'politicized' market system, creating a malfunctioning institutional dynamic. In the revision process, the Commission skillfully highlighted this ineffective dynamic to win support for a much more centralized and market-streamlined approach. In the case of RES, national technology-specific support schemes and the strong links between the renewable industry and member states promoted the converse outcome: decentralization and technology development. Members of the European Parliament utilized these mechanisms through policy networking, while the Commission successfully used developments within the global climate regime to induce some degree of centralization. (Author)

  7. Intra- and extra-union flexibility in meeting the European union's emission reduction targets

    NARCIS (Netherlands)

    Tol, R.S.J.

    2009-01-01

    The EU has proposed four flexibility mechanisms for the regulation of greenhouse gas emissions in the period 2013-2020: (1) the Emissions Trade Scheme (ETS), a permit market between selected companies; (2) trade in non-ETS allotments between Member States; (3) the Clean Development Mechanism (CDM)

  8. Intra- and Extra-Union Flexibility in Meeting the European Union's Emission Reduction Targets

    OpenAIRE

    Tol, Richard S. J.

    2009-01-01

    The EU has proposed four flexibility mechanisms for the regulation of greenhouse gas emissions in the period 2013-2020: (1) the Emissions Trade Scheme (ETS), a permit market between selected companies; (2) trade in non-ETS allotments between Member States; (3) the Clean Development Mechanism (CDM) to purchase offsets in developing countries; and (4) trade in CDM warrants between Member States. This paper shows that aggregate abatement costs fall as flexibility increases. However, limited flex...

  9. 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

  10. 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.

  11. 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

  12. 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)

  13. 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.

  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. Options of biofuel trade from Central and Eastern to Western European countries

    International Nuclear Information System (INIS)

    van Dam, J.; Faaij, A.P.C.; Lewandowski, I.; Van Zeebroeck, B.

    2009-01-01

    Central and Eastern European countries (CEEC) have a substantial biomass production and export potential. The objective of this study is to assess whether the market for biofuels and trade can be profitable enough to realize a supply of biofuels from the CEEC to the European market and to estimate the cost performance of the energy carriers delivered. Five NUTS-2 (Nomenclature d'Unites Territoriales Statistiques) regions with high biomass production potentials in Poland, Romania, Hungary and the Czech Republic were analysed for biofuel export options. From these regions pellets from willow can be provided to destination areas in Western European countries (WEC) at costs of 105.2-219.8 EUR t -1 . Ethanol can be provided at 11.95-20.89 EUR per GJ if the biomass conversion is performed at the destination areas in the WEC or at 14.84-17.83 EUR GJ -1 J if the biomass to ethanol conversion takes place (at small scale) at the CEEC region where the biomass is produced. Short sea shipping shows most cost advantages for longer distance international transport compared to inland waterway shipping and railway. Another reason for lower biofuel supply costs are shorter distances between the regions of biomass production and the destination areas. Therefore the Szczecin region in Poland, closely located to the Baltic Sea, shows a better economic performance for long distance trade of biomass production than the selected region in Hungary ('land-locked'). It is concluded that in future key CEEC regions can supply (pre-treated) biomass and biofuels to the European market at cost levels, which are sound and attractive to current and expected diesel and gasoline prices. (author)

  16. 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.

  17. 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.

  18. 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)

  19. 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

  20. CO2-emission trading and green markets for renewable electricity. WILMAR - deliverable 4.1

    International Nuclear Information System (INIS)

    Azuma-Dicke, N.; Weber, C.; Morthorst, P.E.; Ravn, H.F.; Schmidt, R.

    2004-06-01

    This report is Deliverable 4.1 of the EU project 'Wind Power Integration in Liberalised Electricity Markets' (WILMAR) and de-scribes the application of two policy instruments, Tradable Emissions Permits (TEPs) and Tradable Green Certificates (TGCs) for electricity 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 prices at the electric-ity 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 the fossil-fuelled technologies significantly, and the associated increase in the spot price need not compensate for this. Therefore, a market of TEPs is expected to have a significant influence on the electricity spot price. However, the expected price level of TEPs are met with great uncertainty and a study of a number of economical studies shows a price span between zero and 270 USD per ton of CO 2 depending on the participation or non-participation of countries in the scheme. The price-determination at the TGC market is expected to be closely related to the price at the power spot market as the RE-producers of electricity will have expectations to the total price paid for the energy produced, i.e., for the price of electricity at the spot market plus the price per kWh obtained at the green certificate mar-ket. In the Wilmar model, the TGC market can either be handled exogenously, i.e., the increase in renewable capacity and an average annual TGC price are determined outside the model, or a simple TGC module is developed, including the long-term supply functions for the most relevant renewable technologies and an overall TGC quota. Both solutions are rather simple, but to develop a more advanced model for the TGC market seems to be

  1. Carbon, land, and water footprint accounts for the European Union: consumption, production, and displacements through international trade.

    Science.gov (United States)

    Steen-Olsen, Kjartan; Weinzettel, Jan; Cranston, Gemma; Ercin, A Ertug; Hertwich, Edgar G

    2012-10-16

    A nation's consumption of goods and services causes various environmental pressures all over the world due to international trade. We use a multiregional input-output model to assess three kinds of environmental footprints for the member states of the European Union. Footprints are indicators that take the consumer responsibility approach to account for the total direct and indirect effects of a product or consumption activity. We quantify the total environmental pressures (greenhouse gas emissions: carbon footprint; appropriation of biologically productive land and water area: land footprint; and freshwater consumption: water footprint) caused by consumption in the EU. We find that the consumption activities by an average EU citizen in 2004 led to 13.3 tCO(2)e of induced greenhouse gas emissions, appropriation of 2.53 gha (hectares of land with global-average biological productivity), and consumption of 179 m(3) of blue water (ground and surface water). By comparison, the global averages were 5.7 tCO(2)e, 1.23 gha, and 163 m(3) blue water, respectively. Overall, the EU displaced all three types of environmental pressures to the rest of the world, through imports of products with embodied pressures. Looking at intra-EU displacements only, the UK was the most important displacer overall, while the largest net exporters of embodied environmental pressures were Poland (greenhouse gases), France (land), and Spain (freshwater).

  2. 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.

  3. 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)

  4. 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

  5. How to include farmers in the emission trading system?

    DEFF Research Database (Denmark)

    Svendsen, Gert Tinggaard

    2011-01-01

    The EU has committed itself to an ambitious 20 % reduction of greenhouse gases (GHG) by 2020 compared to the 1990 emissions level. Moreover, the EU goal beyond 2012 is to strengthen, expand and improve climate change initiatives. Therefore, there is a strong need to consider more carefully how...

  6. 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

  7. 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.

  8. 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.

  9. 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

  10. Have Sanctions Modified Iran’s Trade Policy? An Evidence of Asianization and De-Europeanization through the Gravity Model

    Directory of Open Access Journals (Sweden)

    Liudmila Popova

    2016-10-01

    Full Text Available This study is an empirical attempt to find out whether under sanctions Iran’s trade direction has shifted away from Europe (trade policy of de-Europeanization towards Asia (trade policy of Asianization. The analysis is conducted using a panel-gravity trade model to analyze bilateral trade pattern between Iran and 50 countries from the EU and Asia during the period 2006–2013. To this end, the authors use an extended gravity model by adding new variables, including the index of Chinn–Ito (KAOPEN as an indicator of financial openness, and the composite trade intensity (CTI as an indicator of trade openness. Our findings reveal that the gravity equation fits the data reasonably well. The empirical evidence indicates a significant negative effect of sanctions on Iran–EU bilateral trade (by an average of 46.9%, while it has a positive impact on trade between Iran and the Asian countries (by an average of 85.2%. Overall, these findings confirm that the imposition of various sanctions related to Iran’s nuclear program has pushed the country’s foreign trade to reorient away from Europe towards Asia.

  11. 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.

  12. Important aspects of sinks for linking emission trading systems

    Energy Technology Data Exchange (ETDEWEB)

    Hirsbrunner, Simon; Taenzler, Dennis; Reuster, Lena [Adelphi Research gGmbH, Berlin (Germany)

    2011-06-15

    The discussion on how to design policy instruments to reduce emissions and enhance removals from land use, land use change, and forestry is likely to be a key feature of a future global climate protection framework and will also influence the design of an emerging global carbon market. By analyzing different ETSs it turns out that very specific provisions are in place to deal with carbon sinks. Different instruments, eligible activities and standards reflect the prevailing emissions profile and cultural preferences of a geographic area. The inclusion of forestry in a cap, for instance, makes provisions on additionality and non-permanence obsolete, but increases the relevance of other issues such as accounting and enforcement. (orig.)

  13. Greenhouse gas emissions trading - implications for the coal industry

    Energy Technology Data Exchange (ETDEWEB)

    Joshua, F. [Arthur Andersen, London (United Kingdom). Greenhouse Gas Emissions Trading Services

    2000-07-01

    The Kyoto Protocol has initiated a process whereby greenhouse gas emissions markets are beginning to emerge and risks can be assessed at the corporate level. The talk discussed the three flexible market mechanisms to be available to companies for the management of carbon risk. It explained how a carbon-constrained environment will increase the emphasis on an efficient risk management strategy and infrastructure. The 'Clean Development Mechanism market place' may provide business opportunities. Recent increases in energy use and emissions, and forecasts to 2020, were discussed. Issues to be tackled at the next conference of the parties, COP6, in finalising the Kyoto Protocol are outlined. The proceedings contain only overheads/viewgraphs presented at the conference.

  14. 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

  15. Reduction of electricity use in Swedish industry and its impact on national power supply and European CO2 emissions

    International Nuclear Information System (INIS)

    Henning, Dag; Trygg, Louise

    2008-01-01

    Decreased energy use is crucial for achieving sustainable energy solutions. This paper presents current and possible future electricity use in Swedish industry. Non-heavy lines of business (e.g. food, vehicles) that use one-third of the electricity in Swedish industry are analysed in detail. Most electricity is used in the support processes pumping and ventilation, and manufacturing by decomposition. Energy conservation can take place through e.g. more efficient light fittings and switching off ventilation during night and weekends. By energy-carrier switching, electricity used for heat production is replaced by e.g. fuel. Taking technically possible demand-side measures in the whole lines of business, according to energy audits in a set of factories, means a 35% demand reduction. A systems analysis of power production, trade, demand and conservation was made using the MODEST energy system optimisation model, which uses linear programming and considers the time-dependent impact on demand for days, weeks and seasons. Electricity that is replaced by district heating from a combined heat and power (CHP) plant has a dual impact on the electricity system through reduced demand and increased electricity generation. Reduced electricity consumption and enhanced cogeneration in Sweden enables increased electricity export, which displaces coal-fired condensing plants in the European electricity market and helps to reduce European CO 2 emissions. Within the European emission trading system, those electricity conservation measures should be taken that are more cost-efficient than other ways of reducing CO 2 emissions. The demand-side measures turn net electricity imports into net export and reduce annual operation costs and net CO 2 emissions due to covering Swedish electricity demand by 200 million euros and 6 Mtonne, respectively. With estimated electricity conservation in the whole of Swedish industry, net electricity exports would be larger and net CO 2 emissions would be

  16. Climate change and energy - 2004. European carbon factor. Comparison of CO2 emissions of the main European electric utilities

    International Nuclear Information System (INIS)

    2004-01-01

    This joint PWC/Enerpresse brochure publishes the 2003 results of a study about the greenhouse gas (GHG) emissions of the 23 main European electric power producers. The study shows an increase by 5% of the cumulated emissions of power companies with respect to 2002. These 23 companies represent 55% of the emissions of the power/heat sector in Europe (25 countries). The first 10 companies are responsible of 43% of the GHG emissions of this sector in Europe. Among those, 2 show stable emissions while 3 have reduced their emissions. (J.S.)

  17. Climate change and electricity - 2008. European carbon factor. Comparison of CO2 emissions of the main European electric utilities

    International Nuclear Information System (INIS)

    2008-01-01

    This joint PWC/Enerpresse brochure publishes the 2007 results of a study about the greenhouse gas (GHG) emissions of the 22 main European electric power producers. The study shows an increase by 3% of the cumulated emissions of power companies with respect to 2006. These 22 companies represent 59% of the emissions of the power/heat sector in Europe (27 countries). The first 10 companies are responsible of 50% of the GHG emissions of this sector in Europe. Among those, 7 show stable emissions while the others have increased their emissions. (J.S.)

  18. Climate change and electricity - 2006. European carbon factor. Comparison of CO2 emissions of the main European electric utilities

    International Nuclear Information System (INIS)

    2006-01-01

    This joint PWC/Enerpresse brochure publishes the 2005 results of a study about the greenhouse gas (GHG) emissions of the 23 main European electric power producers. The study shows an increase by 1.7% of the cumulated emissions of power companies with respect to 2001. These 23 companies represent 55% of the emissions of the power/heat sector in Europe (25 countries). The first 10 companies are responsible of 45% of the GHG emissions of this sector in Europe. Among those, 7 show stable emissions while 3 have reduced their emissions. (J.S.)

  19. 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.

  20. 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)

  1. Interaction of the EU emissions Trading Directive with climate policy instrument in the Netherlands. Policy Brief

    International Nuclear Information System (INIS)

    Sijm, J.P.M.

    2003-11-01

    This policy brief presents an overview of the implications of the proposed EU Emissions Trading Scheme (EU ETS) for some selected energy and climate policy instruments in the Netherlands. It summarises the results of research that has been conducted by the Energy research Centre of the Netherlands (ECN) as part of the EU-funded project Interaction in EU Climate Policy

  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. 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.

  4. The European Union’s Trade Strategy and Its Reflections on Turkey: an Evaluation from the Perspective of Free Trade Agreements

    Directory of Open Access Journals (Sweden)

    Sait AKMAN

    2010-04-01

    Full Text Available This study attempts to assess implications, of European Union’s (EU new trade strategy and its Free Trade Agreements (FTAs with third countries, on Turkey-EU relations. It analyses critics raised in the context of FTAs and puts forward that the sustainability of the relations is contingent to the satisfaction of a set of criteria.The EU shifted its trade policy from sole reliance on multilateral trade negotiations towards initiatives for bilateral and preferential agreements (PTAs under its ‘Global Europe’ strategy which was adopted in 2006, to propose its trade policy agenda and priorities in accordance with its Lisbon Strategy. WTO Doha Round is currently in deadlock and it is improbable that it will be concluded in the near future. Partly for this reason, the EU tends to implement its policy objectives constantly through a set of FTAs. Turkey has to align its trade policy to the EU’s preferential regimes, pursuant to its obligations arising from the Customs Union (CU. Hence, it has concluded so far sixteen FTAs with relevant countries. On the other hand, the intensification of critics about the FTAs process and the CU brings impediments for Turkey to commit itself to its CU obligations in the next period. Two main motives can be cited as a reason: First, the EU trade strategy obviously considers the global context within which the EU rests; and the Member States’ interests, which are subsequently reflected into its FTAs. Nevertheless, a harmonious action by Turkey becomes onerous as long as EU trade priorities diverge from Turkey’s long term trade strategy. Second reason, aside from technical aspects of the CU, can be attributed to the ‘political uncertainty’ converged around the ‘open-endedness’ of the membership process, which in turn affects the CU, Turkey’s most vital linkage to the EU, and the commitments there from.

  5. The fundamentals of the future international emissions trading system

    International Nuclear Information System (INIS)

    Stankeviciute, Loreta; Kitous, Alban; Criqui, Patrick

    2008-01-01

    The study aims to analyze the sectoral marginal abatements cost curves for a number of EU countries as well as to examine the efficiency aspects and the economic impacts for the major sectors of the ETS under different carbon market configurations in 2010 and 2020. To produce a consistent and realistic assessment, we employ sources such as GHG National Inventories, NAPs and POLES world energy model to constitute the sectoral base year and 2010, 2020 emission levels in different countries and regions. We then use the market analysis tool ASPEN, which enables to derive supply and demand from sectoral MACCs produced with the POLES model, and to evaluate the economic impacts on the carbon market participants. The paper shows that, in compliance with the Kyoto targets, the benefits of an enlarged carbon market are significant, since more than 50% of the abatement in the short term have to be achieved in ETS sectors, which may indeed use CDM or JI credits. A second major conclusion is that in 2020 the new flexibility margins provided by the adjustment of investments in new capacities compensate for the increase in pressure towards stronger emission reductions. This reduces the relative importance of the enlarged carbon market

  6. 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.

  7. 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)

  8. 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

  9. 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

  10. Condition-Dependent Trade-Off Between Weapon Size and Immunity in Males of the European Earwig.

    Science.gov (United States)

    Körner, Maximilian; Vogelweith, Fanny; Foitzik, Susanne; Meunier, Joël

    2017-08-11

    Investigating the expression of trade-offs between key life-history functions is central to our understanding of how these functions evolved and are maintained. However, detecting trade-offs can be challenging due to variation in resource availability, which masks trade-offs at the population level. Here, we investigated in the European earwig Forficula auricularia whether (1) weapon size trades off with three key immune parameters - hemocyte concentration, phenoloxidase and prophenoloxidase activity - and whether (2) expression and strength of these trade-offs depend on male body condition (body size) and/or change after an immune challenge. Our results partially confirmed condition dependent trade-offs between weapon size and immunity in male earwigs. Specifically, we found that after an immune challenge, weapon size trades off with hemocyte concentrations in low-condition, but not in good-condition males. Contrastingly, weapon size was independent of pre-challenge hemocyte concentration. We also found no trade-off between weapon size and phenoloxidase activity, independent of body condition and immune challenge. Overall, our study reveals that trade-offs with sexual traits may weaken or disappear in good-condition individuals. Given the importance of weapon size for male reproductive success, our results highlight how low-condition individuals may employ alternative life-history investment strategies to cope with resource limitation.

  11. 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

  12. Climate change and electricity - 2003. European carbon factor. Comparison of CO2 emissions of the main European electric utilities

    International Nuclear Information System (INIS)

    2003-01-01

    This joint PWC/Enerpresse brochure publishes the 2002 results of a study about the greenhouse gas (GHG) emissions of the 21 main European electric power producers. The study shows an increase by 0.8% of the cumulated emissions of power companies with respect to 2001. These 21 companies represent 75% of the emissions of the power/heat sector in Europe (25 countries). The first 10 companies are responsible of 60% of the GHG emissions of this sector in Europe. Among those, 7 have increased their emissions while 3 have reduced them. (J.S.)

  13. The impact of TTIP agreement on the European Union-United States coal trade potential

    Directory of Open Access Journals (Sweden)

    Olkuski Tadeusz

    2016-01-01

    Full Text Available The main aim of the paper is to assess the impact of currently negotiated TTIP agreement (Transatlantic Trade and Investment Partnership on the use of hard coal in the EU and the US. Hard coal is the most important fuel in global electricity generation. This also applies to the United States, a leading manufacturer and exporter of this energy source. The US coal is exported to the EU market. The article presents the estimated exports of hard coal from the US to the EU. Due to the fact that price has a major impact on the size of exports, the paper presents the estimated prices, including freight costs, of power coal for the analyzed scenarios. According to one scenario, the US and European prices will be equalized (including freight costs by 2020, while from 2025 on the comparative advantage and competitiveness of the US hard coal will decrease. Taking into account the fact that the export of coal from the United States is free from customs duties, the acceptance of TIPP should not affect the currently existing trade between the two continents and the amount of exported coal. Nevertheless, the question of hard coal economy cannot be separated from other sectors of the energy market, which can be significantly affected by the future agreement.

  14. Jack-of-all-trades effects drive biodiversity–ecosystem multifunctionality relationships in European forests

    Science.gov (United States)

    van der Plas, Fons; Manning, Peter; Allan, Eric; Scherer-Lorenzen, Michael; Verheyen, Kris; Wirth, Christian; Zavala, Miguel A.; Hector, Andy; Ampoorter, Evy; Baeten, Lander; Barbaro, Luc; Bauhus, Jürgen; Benavides, Raquel; Benneter, Adam; Berthold, Felix; Bonal, Damien; Bouriaud, Olivier; Bruelheide, Helge; Bussotti, Filippo; Carnol, Monique; Castagneyrol, Bastien; Charbonnier, Yohan; Coomes, David; Coppi, Andrea; Bastias, Cristina C.; Muhie Dawud, Seid; De Wandeler, Hans; Domisch, Timo; Finér, Leena; Gessler, Arthur; Granier, André; Grossiord, Charlotte; Guyot, Virginie; Hättenschwiler, Stephan; Jactel, Hervé; Jaroszewicz, Bogdan; Joly, François-Xavier; Jucker, Tommaso; Koricheva, Julia; Milligan, Harriet; Müller, Sandra; Muys, Bart; Nguyen, Diem; Pollastrini, Martina; Raulund-Rasmussen, Karsten; Selvi, Federico; Stenlid, Jan; Valladares, Fernando; Vesterdal, Lars; Zielínski, Dawid; Fischer, Markus

    2016-01-01

    There is considerable evidence that biodiversity promotes multiple ecosystem functions (multifunctionality), thus ensuring the delivery of ecosystem services important for human well-being. However, the mechanisms underlying this relationship are poorly understood, especially in natural ecosystems. We develop a novel approach to partition biodiversity effects on multifunctionality into three mechanisms and apply this to European forest data. We show that throughout Europe, tree diversity is positively related with multifunctionality when moderate levels of functioning are required, but negatively when very high function levels are desired. For two well-known mechanisms, ‘complementarity' and ‘selection', we detect only minor effects on multifunctionality. Instead a third, so far overlooked mechanism, the ‘jack-of-all-trades' effect, caused by the averaging of individual species effects on function, drives observed patterns. Simulations demonstrate that jack-of-all-trades effects occur whenever species effects on different functions are not perfectly correlated, meaning they may contribute to diversity–multifunctionality relationships in many of the world's ecosystems. PMID:27010076

  15. The EU Seal Products Ban – Why Ineffective Animal Welfare Protection Cannot Justify Trade Restrictions under European and International Trade Law

    Directory of Open Access Journals (Sweden)

    Martin Hennig

    2015-03-01

    Full Text Available In this article, the author questions the legitimacy of the general ban on trade in seal products adopted by the European Union. It is submitted that the EU Seal Regime, which permits the marketing of Greenlandic seal products derived from Inuit hunts, but excludes Canadian and Norwegian seal products from the European market, does not ensure a satisfactory degree of animal welfare protection in order to justify the comprehensive trade restriction in place. It is argued that the current ineffective EU ban on seal products, which according to the WTO Appellate Body cannot be reconciled with the objective of protecting animal welfare, has no legal basis in EU Treaties and should be annulled.

  16. Source Classification Framework for an optimized European wide Emission Control Strategy

    DEFF Research Database (Denmark)

    Lützhøft, Hans-Christian Holten; Donner, Erica; Ledin, Anna

    2011-01-01

    of the PS environmental emission. The SCF also provides a well structured approach for European pollutant source and release classification and management. With further European wide implementation, the SCF has the potential or an optimized ECS in order to obtain good chemical status of European water...

  17. 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.

  18. 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

  19. 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

  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. 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

  2. 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)

  3. 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.

  4. Economic Analysis of the European Climate Policy: the European emissions trading scheme

    NARCIS (Netherlands)

    S. Clò (Stefano)

    2010-01-01

    textabstractThe last two decades have experienced an increasing awareness about global warming, its causes, and potential effects on the ecosystem, in general, and on humankind, in particular. Global warming is nowadays recognized as one of the most impressive global negative externalities and

  5. EUROPEAN UNION PARTICIPATION IN NEGOTIATIONS ON TRANSATLANTIC TRADE AND INVESTMENT PARTNERSHIP

    Directory of Open Access Journals (Sweden)

    D. E. Rudenkova

    2016-01-01

    Full Text Available This article contributes to the discussion surrounding involvement of interest groups in the political process on the European and global level. My purpose here is to examine how groups of interest can affect EU’s role as a global actor and find out which mode of lobbying regulation could strengthen Europe’s position in global governance. In this article, I am trying to bind concepts which at first glance might seem quite remote: groups of interests and global governance. By analyzing Europe’s position on the Transatlantic Trade and Investment Partnership (TTIP and the Trans-Pacifi c Partnership (TPP, I argue that European ambitions on international arena are undermined by innertensions. These tensions are mainly caused by discrepancy in positions of different groups of interest who try to infl uence the outcome of the political process and, thus, make it less stable and predictable. At the same time, adequate lobbying regulation could increase accountability and transparency and, therefore, help to overcome inconsistencies in EU’s position in global governance system. The results suggest that without proper backing from inside actors like business groups and civil society associations the EU will constantly wobble and will not be able to fully achieve its global goals.

  6. Agricultural protectionism of the European union in the conditions of international trade liberalization

    Directory of Open Access Journals (Sweden)

    Marković Ivan

    2014-01-01

    Full Text Available The key objective of agricultural protectionism is reflected in the protection and developing of agriculture sector. Integrated parts of this policy in the European Union are the initial model of agricultural protectionism and a new strategy of agricultural policy, which emerged as a response to the shortcomings of previously existing model. The paper presents the key reforms of agricultural policy, conditioned to internal problems and pressures in the negotiations of trade liberalization of agricultural and food products. Reform solutions for the period of 2014 to the 2020 will have similar goals. The priority will be to develop sustainable food production and sustainable management of natural resources. There is a widespread awareness of sustainable development that includes not only the economic component (which is reflected in the increase in productivity and production efficiency, but also an environmental component (the need to preserve the environment, as well as the social component of sustainable development (integrated rural development. Conducting negotiations in the framework of liberalization of agricultural and food products, there was a gradual reduction of restrictive measures in the field of domestic agriculture protection. However, the European food market is still highly protected from foreign competition because of the many features of the agricultural production sector and the importance of agriculture for the entire society. It is certain that the CAP will lose its narrow agricultural character.

  7. Demand, supply, and trade analysis for the fifth ECE/FAO European timber trends study

    International Nuclear Information System (INIS)

    Baudin, A.

    1996-01-01

    For this study, supply is explained using prices and costs; separate supply models are estimated for export supply, and supply to domestic markets. Using this approach, elasticities can vary by market (for supply equations) and by source of supply (for demand equations). In addition, substitution behaviour in both consumption and production can be examined. For the 9 countries that are smaller markets for forest products in Europe, a model of total demand (apparent consumption) was estimated using gross domestic product and price as explanatory factors. For these countries, a time-series, cross-section approach was used to estimate elasticities; countries were grouped by per capita income. For all countries, estimated elasticities are generally consistent with those reported in previous TTS, and those reported in the scientific literature. Because trade is modeled, additional information is available regarding the outlook for European forest products consumption, and demand on European forests. Where complete data sets were available, results generally indicate that there is substitution in consumption between imports and domestic production, for most products, in most countries. In addition, import elasticities often are higher than elasticities estimated for consumption from domestic sources. Substitution between exports and domestic markets is also evident in export supply equations. 10 refs, 21 tabs

  8. Quantifying the trade in marine ornamental fishes into Switzerland and an estimation of imports from the European Union

    Directory of Open Access Journals (Sweden)

    Monica V. Biondo

    2017-07-01

    Full Text Available Millions of marine ornamental fishes are traded every year. Today, over half of the known nearly 4000 coral reef fish species are in trade with poor or no monitoring and demand is increasing. This study investigates their trade into and through Switzerland by analyzing import documents for live animals. In 2009, 151 import declarations with attached species lists for marine ornamental fishes from non-EU countries totaled 28 356 specimens. The 62% of the fishes remaining in Switzerland, comprised 440 marine species from 45 families, the rest transited to EU and non-EU countries. Despite the recognized large trade volume for the European region, due to bilateral agreements, no data is collected for imports from the EU. However, inferred data shows that more than 200 000 marine ornamental fishes could be imported into Switzerland every year and an unknown quantity re-exported. As biggest import region, it is therefore safe to assume, that the European region is importing at least as many marine ornamental fishes as the US. There is no adequate data-collecting system known to be in place in any country for monitoring this trade. The EU Trade Control and Expert System (TRACES to monitor animal diseases could be adjusted to gather compulsory information for the EU and Switzerland. More than half of the species imported into Switzerland are not assessed by the IUCN and therefore marked as ‘not evaluated’ on the Red List. Overall, 70% of all known coral reef fish species have not been evaluated. If coral reef fishes are threatened or endangered due to large, possibly unsustainable numbers traded, it may be rational to monitor the trade in these species through the Convention on International Trade of Endangered Species (CITES.

  9. 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.

  10. Income, Economic Structure and Trade: Impacts on Recent Water Use Trends in the European Union

    Directory of Open Access Journals (Sweden)

    Rosa Duarte

    2018-01-01

    Full Text Available From the mid-1990s to the recent international economic crisis, the European Union (EU27 experienced a significant economic growth and a flat population increase. During these years, the water resources directly used by the EU countries displayed a growing but smooth trend. However, European activities intensively demanded water resources throughout the whole global supply chain. The growth rate of embodied water use was three times higher than the growth in water directly used by these economies. This was mainly due to the large upsurge of virtual water imports in the EU (e.g., about 25% of the change in water imports in the world was directly linked to the increasing imports in the EU27 countries. In this context, we analyze water use changes in the EU27 from 1995 to 2009, combining the production and consumption perspectives. To that aim, we use the environmentally extended input-output approach to obtain the volume of water embodied in domestic production and in trade flows at the sector and country levels. In the empirical analysis, we utilize multi-regional input-output data from the World Input Output Database. In addition, by means of a structural decomposition analysis we identify and quantify the factors explaining changes in these trends. We focus both on the role of domestic production and trade and estimate the associated intensity, technology and scale effects. This analysis is done for different clusters, identifying singular patterns depending on income criteria. Our results confirm the boost of demand growth in that period, the positive but negligible effect of structural change, and the decline in water intensity which, however, was not enough to compensate the effects on water associated to the economic expansion in the period. These findings also point at a gradual substitution of domestic water use for virtual water imports. More concretely, in most countries the food industry tended to reduce its backward linkages with the

  11. 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)

  12. Quotum for CO2. Trading system in preparation

    International Nuclear Information System (INIS)

    Van der Weijden, C.; Dingenen, S.

    2002-01-01

    CO2 emission rights trading is one of the most promising tools for limiting the release of CO2 in the short term. While development of a trading system continues at the European Union level, the Netherlands is working on a system of its own, which will differ from its European counterpart in various critical respects. Although the Netherlands is likely to be one of the main beneficiaries of emission trading, the nation nevertheless has an obligation to pursue technical innovation [nl

  13. Influences from the European Parliament on EU emissions prices

    International Nuclear Information System (INIS)

    Deeney, Peter; Cummins, Mark; Dowling, Michael; Smeaton, Alan F.

    2016-01-01

    The decisions of the European Parliament (EP) are shown to influence both EU emission allowance (EUA) prices and volatility. Reductions in price and increases in volatility are observed when EP decisions are (i) not “party-political” in origin, (ii) made during times of low market sentiment, or (iii) made during times of low market attention. Daily EUA prices from 2007 to 2014 are used in the study, with decisions analysed using an event study approach for price impact, and a GARCH specification for volatility impact. Our findings suggest the need for policymakers to improve communication of long-term strategies for the EUA market. This aims to reduce the evident ongoing uncertainty experienced by traders around each decision made by the EP. The finding that sentiment and market attention at the time of an EP decision influences the market's reaction indicates a need to consider market dynamics in terms of decision timing, so that market turbulence is not an unintended by-product of an EP decision. Some form of medium term forward guidance may be called for. - Highlights: • Specific types of EP decisions lead to reduced carbon prices and increased volatility. • Decisions proposed by non-party-political groups have a significant effect. • There is a similar impact when market sentiment or news exposure is low. • Recommendation for some form of forward guidance.

  14. Optimal policy for mitigating emissions in the European transport sector

    Science.gov (United States)

    Leduc, Sylvain; Piera, Patrizio; Sennai, Mesfun; Igor, Staritsky; Berien, Elbersen; Tijs, Lammens; Florian, Kraxner

    2017-04-01

    A geographic explicit techno-economic model, BeWhere (www.iiasa.ac.at/bewhere), has been developed at the European scale (Europe 28, the Balkans countries, Turkey, Moldavia and Ukraine) at a 40km grid size, to assess the potential of bioenergy from non-food feedstock. Based on the minimization of the supply chain from feedstock collection to the final energy product distribution, the model identifies the optimal bioenergy production plants in terms of spatial location, technology and capacity. The feedstock of interests are woody biomass (divided into eight types from conifers and non-conifers) and five different crop residuals. For each type of feedstock, one or multiple technologies can be applied for either heat, electricity or biofuel production. The model is run for different policy tools such as carbon cost, biofuel support, or subsidies, and the optimal mix of technologies and biomass needed is optimized to reach a production cost competitive against the actual reference system which is fossil fuel based. From this approach, the optimal mix of policy tools that can be applied country wide in Europe will be identified. The preliminary results show that high carbon tax and biofuel support contribute to the development of large scale biofuel production based on woody biomass plants mainly located in the northern part of Europe. Finally the highest emission reduction is reached with low biofuel support and high carbon tax evenly distributed in Europe.

  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 - 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

  17. 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

  18. 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.

  19. 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)

  20. 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...

  1. 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)

  2. 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.

  3. 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.

  4. 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.

  5. European Community Can Reduce CO2 Emissions by Sixty Percent : A Feasibility Study

    NARCIS (Netherlands)

    Mot, E.; Bartelds, H.; Esser, P.M.; Huurdeman, A.J.M.; Laak, P.J.A. van de; Michon, S.G.L.; Nielen, R.J.; Baar, H.J.W. de

    1993-01-01

    Carbon dioxide (CO2) emissions in the European Community (EC) can be reduced by roughly 60 percent. A great many measures need to be taken to reach this reduction, with a total annual cost of ECU 55 milliard. Fossil fuel use is the main cause of CO2 emissions into the atmosphere; CO2 emissions are

  6. The CO2 emissions of the European power sector: economic drivers and the climate-energy policies' contribution. Working Paper No. 2014 - 17

    International Nuclear Information System (INIS)

    Berghmans, Nicolas; Cheze, Benoit; Alberola, Emilie; Chevallier, Julien

    2014-10-01

    In the frame of the ongoing debate on the 2030 energy and climate policies in the European Union, this article provides the first assessment of the effectiveness of European energy and climate policies on the CO 2 emissions reductions. This ex-post analysis deals with the CO 2 emissions of the electricity sector covered by the European Union Emission Trading Scheme (EU ETS) during its phases I and II (2005-2012). We analyze the contribution of different variables (including climate and energy policies, energy prices, economic activity and technical features of plants) in the evolution of CO 2 emissions from electricity production plants in Europe. The empirical results allow drawing a number of conclusions regarding the causes of the downward trend in the carbon emissions generated by power production covered by the EU ETS between 2005 and 2012. First, we show that the increased use of renewable energy in electricity production has played a dominant role in the fall in CO 2 emissions in the power sector. Second, the analysis confirms that the economic downturn has played a significant role, although not a dominant one. Third, price substitution effects between coal and gas also seem to have affected carbon emissions. Last but not least, we identify that the price of carbon has also pushed down power CO 2 emissions. (authors)

  7. GASTALE. An oligopolistic model of production and trade in the European gas market

    International Nuclear Information System (INIS)

    Boots, M.G.; Rijkers, F.A.M.; Hobbs, B.F.

    2003-08-01

    The empirical model GASTALE is described and used to analyse the European natural gas market. These analyses focus primarily on the role of the downstream trading companies and their interaction with gas producers. By default, producers of natural gas are assumed to form an oligopoly in the paper. Meanwhile, downstream within-country traders of gas are represented in different versions of the model as local oligopolists or perfect competitors. The model therefore has a two-level structure, in which producers engage in competition a la Cournot, and each producer is a Stackelberg leader with respect to traders, who may be Cournot oligopolists or perfect competitors. The case of Cournot traders results in a new form of energy model, that of successive oligopoly. The model is formulated as a complementarity problem, and is solved by nonlinear programming. Considering this oligopolistic market structure, several tentative conclusions emerge. First, our model results show that successive oligopoly (so-called 'double marginalisation') yields significantly higher prices and lower consumer welfare than if oligopoly exists only on one level. Second, oligopoly in the trading market (because of the high concentration of traders) results in more distortion than oligopoly in production. Third, the level of traders' profits depends on the possibilities of discrimination on the border prices. If price discrimination by producers is allowed, these producers collect a greater share of the margins on end-use prices. Fourth, when the number of traders increases and assuming an oligopolistic downstream structure, end-use prices converge to prices corresponding with perfect competition. Thus, it is important to prevent (or abolish) monopolistic structures in the downstream gas market. In the case where oligopolistic competition among downstream gas companies cannot be prevented, vertical integration should be supported (or at least not be discouraged), especially if it would result in a

  8. The innovation impact of the EU Emission Trading System. Findings of company case studies in the German power sector

    International Nuclear Information System (INIS)

    Rogge, Karoline S.; Schneider, Malte; Hoffmann, Volker H.

    2011-01-01

    This paper provides a detailed analysis of how the European Emission Trading System (EU ETS) as the core climate policy instrument of the European Union has impacted innovation. Towards this end, we investigate the impact of the EU ETS on research, development and demonstration (RD and D), adoption, and organizational change. In doing so, we pay particular attention to the relative influences of context factors (policy mix, market factors and public acceptance) and firm characteristics (value chain position, technology portfolio, size and vision). Empirically, our qualitative analysis is based on multiple case studies with 19 power generators, technology providers and project developers in the German power sector which were conducted in 2008/09. We find that the innovation impact of the EU ETS has remained limited so far because of the scheme's initial lack of stringency and predictability and the relatively greater importance of context factors. Additionally, the impact varies significantly across technologies, firms, and innovation dimensions and is most pronounced for RD and D on carbon capture technologies and organizational changes. Our analysis suggests that the EU ETS on its own may not provide sufficient incentives for fundamental changes in corporate innovation activities at a level which ensures political long-term targets can be achieved. (author)

  9. The innovation impact of EU emission trading. Findings of company case studies in the German power sector

    Energy Technology Data Exchange (ETDEWEB)

    Rogge, Karoline S. [Fraunhofer-Institut fuer Systemtechnik und Innovationsforschung (ISI), Karlsruhe (Germany); Swiss Federal Inst. of Technology Zurich (ETH Zurich) (Switzerland). Dept. of Management, Technology, and Economics; Schneider, Malte; Hoffmann, Volker H. [Swiss Federal Inst. of Technology Zurich (ETH Zurich) (Switzerland). Dept. of Management, Technology, and Economics

    2010-05-01

    This paper provides a comprehensive analysis of how the European Emission Trading System (EU ETS) as the core climate policy instrument of the European Union has impacted innovation. Towards this end, we investigate the impact of the EU ETS on research, development, and demonstration (RD and D), adoption, and organizational change. In doing so, we pay particular attention to the rela-tive influences of context factors (policy mix, market factors, public acceptance) as well as firm characteristics (value chain position, technology portfolio, size, vision). Empirically, our analysis is based on multiple case studies with 19 power generators, technology providers, and project developers in the German power sector which we conducted from June 2008 until June 2009. We find that the innovation impact of the EU ETS has remained limited so far because of the scheme's initial lack in stringency and predictability and the relatively greater importance of context factors. Additionally, the impact varies tremendously across technologies, firms, and innovation dimensions, and is most pronounced for RD and D on carbon capture technologies and corporate procedural change. Our analysis suggests that the EU ETS by itself may not provide sufficient incentives for fundamental changes in corporate climate innovation activities at a level adequate for reaching political long-term targets. Based on the study's findings, we derive a set of policy and research recommendations. (orig.)

  10. A public choice view on the climate and energy policy mix in the EU — How do the emissions trading scheme and support for renewable energies interact?

    International Nuclear Information System (INIS)

    Gawel, Erik; Strunz, Sebastian; Lehmann, Paul

    2014-01-01

    In this paper, we analyze the rationale for an energy policy mix when the European Emissions Trading Scheme (ETS) is considered from a public choice perspective. That is, we argue that the economic textbook model of the ETS implausibly assumes (1) efficient policy design and (2) climate protection as the single objective of policy intervention. Contrary to these assumptions, we propose that the ETS originates from a political bargaining game within a context of multiple policy objectives. In particular, the emissions cap is negotiated between regulators and emitters with the emitters' abatement costs as crucial bargaining variable. This public choice view yields striking implications for an optimal policy mix comprising RES supporting policies. Whereas the textbook model implies that the ETS alone provides sufficient climate protection, our analysis suggests that support for renewable energies (1) contributes to a more effective ETS-design and (2) may even increase the overall efficiency of climate and energy policy if other externalities and policy objectives besides climate protection are considered. Thus, our analysis also shows that a public choice view not necessarily entails negative evaluations concerning efficiency and effectiveness of a policy mix. - Highlights: • We analyze the interaction of the EU Emissions Trading Scheme and support policies for RES. • Stylized framework with emission cap as variable to be negotiated between regulators and emitters. • RES-support contributes to a more stringent emission cap and may even increase overall efficiency

  11. 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

  12. 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.

  13. Rapid turns in European renewable energy policy: advocacy and framing of the proposed trading of guarantees of origin

    Energy Technology Data Exchange (ETDEWEB)

    Nilsson, Maans; Nilsson, Lars J.; Ericsson, Karin

    2008-10-15

    The EU has assumed ambitious targets and strategies for the promotion of renewable sources of energy (RES) binding to all its member states. This report sets out to examine the proposed EU-wide policy instrument designed to help achieve the targets on renewable electricity and heat - the trading of Guarantees of Origin (GO). It analyses the fate of the GO trading proposal in the European policy-making machinery during 2007 and 2008. It first discusses its origins, key components and points of contention, and then examines key factors behind the policy development leading first to its development and subsequently to its abandonment in 2008. Addressing these factors, the report explores first the near-term policy-making process before and after the proposal on GO trading was tabled in January 2008, focusing on processes in the European bureaucracy and how they were influenced by different interest groups and member state governments. It then takes a step back and looks at how competing policy frames over time have shaped the GO instrument debate. Results show how a strong internal market frame acted as a primary driving force in the Commission throughout the 2000s to promote the GO trading instrument. The subsequent collapse of the GO trading proposal can be largely attributed to a) the lack of a strong lobby in favour of GO, b) the accumulated experience with and institutionalisation of national RES support policy, and c) growing general political concerns for supply security, innovation and competitiveness. In the end, the fall of the GO trading instrument is indicative of how the underlying political battle line between advocates of the European internal market and guardians of national interests has moved in favour of the latter in recent years. (author). refs

  14. 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.

  15. 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