Over-Allocation or Abatement? A Preliminary Analysis of the Eu Ets Based on the 2005 Emissions Data

Barbara Buchner and Denny Ellerman
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Barbara Buchner: Fondazione Eni Enrico Mattei
Denny Ellerman: Massachusetts Institute of Technology

No 2006.139, Working Papers from Fondazione Eni Enrico Mattei

Abstract: This paper provides an initial analysis of the EU ETS based on the installation-level data for verified emissions and allowance allocations in the first trading year. Those data, released on May 15, 2006, and subsequent updates revealed that CO2 emissions were about 4% lower than the allocated allowances. The main objective of the paper is to shed light on the extent to which over-allocation and abatement have taken place in 2005. We propose a measure by which over-allocation can be judged and provide estimates of abatement based on emissions data and indicators of economic activity as well as trends in energy and carbon intensity. Finally, we discuss the insights and implications that emerge from this tentative assessment.

Keywords: Climate Change; Emission Trading; Allocation; Environmental Effects (search for similar items in EconPapers)
JEL-codes: D61 O1 Q51 Q54 (search for similar items in EconPapers)
Date: 2006-11
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2006.139

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