 Ways to improve the design of the EU emissions trading scheme: key issues and answersMPRA Paper from University Library of Munich, Germany Abstract: The Europe Union is about to lunch the world’s first greenhouse gas emissions trading scheme in history. This represents an enormous challenge because there is no previous experience with such an unprecedented scheme, and because its final outcome might shape the design of future environmental market-based policies as well as the political viability of future efforts towards emissions reductions. There are five basic issues that not only will shape the final design of the scheme but also might hinder the performance of such a scheme, if not effectively addressed. They include universal vs. reduced scope, member country vs. European-wide sector objectives and allocations, allocation methodology and base year choice, energy mix and national security, and incentives for technological innovation. This paper aims to address these key issues to help to shape the final design of the scheme in a positive manner. Keywords: EU emissions trading scheme; Allowance allocations; Carbon price; Energy mix; Technological innovation; Competitiveness concerns (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:pra:mprapa:14668 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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