Journal
ENERGY POLICY
Volume 35, Issue 3, Pages 1718-1730Publisher
ELSEVIER SCI LTD
DOI: 10.1016/j.enpol.2006.04.007
Keywords
emission trading; closures; new entrants
Ask authors/readers for more resources
Member States in the European Union (EU) are responsible for National Allocation Plans governing the initial distribution of emission allowances in the CO2 Emission Trading System, including rules governing allocations to installations that close and to new entrants. The European Commission has provided guidelines to discourage the use of allocation methodologies that provide incentives affecting firms' compliance behavior, for example by rewarding one type of compliance investment over another. We find that the treatment of closures and new entrants by Member States is inconsistent with the general guidelines provided by the EU. We propose stronger EU guidance regarding closures and new entrants, a more precise compensation criterion on which to justify free allocations, and a Ten-Year Rule as a component of future EU policy that can guide a transition from current practice to an approach that places greater weight on efficiency. (c) 2006 Elsevier Ltd. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available