 The role of the emissions trading scheme 2 in the policy mix to decarbonize road transport in the European UnionLuke Haywood and Michael Jakob Transport Policy, 2023, vol. 139, issue C, 99-108 Abstract: This article analyzes the recently decided EU-wide emission trading scheme for road transport and heating fuels. The so-called ETS2 is part of the ‘Fit for 55’ policy package, which also includes tighter vehicle emission standards, a reform of energy taxation, provisions to enhance advanced fuel infrastructure and a Social Climate Fund to alleviate financial pressure for low-income households. We argue that the ETS2 should be understood as an element of a broader policy mix, which considers multiple market failures, fairness both within and across EU member states within the institutional constraints of EU policy making. We conclude by discussing specific potential modifications to the design of the ETS2 that could help achieve the EU's climate target in an efficient and equitable way. These include linking ETS and ETS2, reducing price volatility, increasing the size of the Social Climate fund, and clarifying penalties for countries missing targets under the Effort Sharing Regulation. Keywords: Decarbonizing road transport; European Union; Carbon pricing; ETS2; Just Transition; European Green Deal (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:trapol:v:139:y:2023:i:c:p:99-108 Ordering information: This journal article can be ordered from DOI: 10.1016/j.tranpol.2023.06.003 Access Statistics for this article Transport Policy is currently edited by Y. Hayashi More articles in Transport Policy from Elsevier |
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