The Market Stability Reserve in the EU Emissions Trading System: A Critical Review

Simone Borghesi (), Michael Pahle, Grischa Perino, Simon Quemin and Maximilian Willner
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Simone Borghesi: Florence School of Regulation, European University Institute
Michael Pahle: PIK - Potsdam Institute for Climate Impact Research
Simon Quemin: EDF R&D SYSTEME - EDF R&D - EDF R&D - EDF - EDF
Maximilian Willner: UHH - Universität Hamburg = University of Hamburg

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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; stability mechanism; overlapping policies (search for similar items in EconPapers)
Date: 2023-10-05
New Economics Papers: this item is included in nep-eec and nep-env
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Citations: View citations in EconPapers (2)

Published in Annual Review of Resource Economics, 2023, 15 (1), pp.131-152. ⟨10.1146/annurev-resource-111820-030145⟩

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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:hal:journl:hal-04551558

DOI: 10.1146/annurev-resource-111820-030145

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