Leaving an emissions trading scheme – insights from the United Kingdom

Richard Tol

Working Paper Series from Department of Economics, University of Sussex Business School

Abstract: The United Kingdom may opt to leave the EU Emissions Trading System (ETS) for greenhouse gases. If so, a central plank of UK climate policy will need to be replaced at short notice. The UK is a large importer of emission permits, and meeting its climate policy targets would be much harder and dearer without the EU ETS. The impact on the EU would be limited, although UK permits circulating in the rest of the EU would lose their legal standing between Brexit and 2021. Non-EU countries take part in the EU ETS, and this appears to be the best option for the UK post-Brexit.

Keywords: climate policy; tradable permits; Brexit; EU ETS (search for similar items in EconPapers)
JEL-codes: Q54 (search for similar items in EconPapers)
Date: 2017-06
New Economics Papers: this item is included in nep-ene, nep-env, nep-eur and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:sus:susewp:1017

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