The market stability reserve in the EU emissions trading system: a critical review

Simone Borghesi, Michael Pahle, Grischa Perino, Simon Quemin and Maximilian Willner

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Having experienced low prices for about a decade, the European Union Emissions Trading System has been supplemented with the market stability reserve (MSR) that adjusts the supply of allowances to market outcomes. We critically review the literature assessing the performance of the MSR against several policy objectives. In doing so, we cover both conceptual aspects and quantitative assessments. We conclude by pointing out important policy implications and open issues for further research.

Keywords: climate policy; emissions trading; EU ETS; overlapping policies; stability mechanism (search for similar items in EconPapers)
JEL-codes: J1 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2023-10-01
New Economics Papers: this item is included in nep-ene and nep-env
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Citations: View citations in EconPapers (2)

Published in Annual Review of Resource Economics, 1, October, 2023, 15, pp. 131-152. ISSN: 1941-1340

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http://eprints.lse.ac.uk/120548/ Open access version. (application/pdf)

Related works:
Journal Article: The Market Stability Reserve in the EU Emissions Trading System: A Critical Review (2023)
Working Paper: The Market Stability Reserve in the EU Emissions Trading System: A Critical Review (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:120548

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