Grandfathering, auctioning and Carbon Leakage: Assessing the inconsistencies of the new ETS Directive

Clò, Stefano

doi:10.1016/j.enpol.2009.12.035

Cited by 75 publications

(43 citation statements)

References 12 publications

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“…Each method presents advantages and disadvantages as stated in Clò [57]. We found that fluctuations in the forecasted CO 2 emission allowance currency ratio in China for the second period were the smallest for Equation (15) as shown in [12,13] and Yu et al [28].…”

Section: Co 2 Emission Allowance Currency Ratio Forecasting Resumentioning

confidence: 71%

Forecasting the Allocation Ratio of Carbon Emission Allowance Currency for 2020 and 2030 in China

Zeng

Chen

2016

Sustainability

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Many countries and scholars have used various strategies to improve and optimize the allocation ratios for carbon emission allowances. This issue is more urgent for China due to the uneven development across the country. This paper proposes a new method that divides low-carbon economy development processes into two separate periods: from 2020 to 2029 and from 2030 to 2050. These two periods have unique requirements and emissions reduction potential; therefore, they must involve different allocation methods, so that reduction behaviors do not stall the development of regional low-carbon economies. During the first period, a more deterministic economic development approach for the carbon emission allowance allocation ratio should be used. During the second period, more adaptive and optimized policy guidance should be employed. We developed a low-carbon economy index evaluation system using the entropy weight method to measure information filtering levels. We conducted vector autoregressive correlation tests, consulted 60 experts for the fuzzy analytic hierarchy process, and we conducted max-min standardized data processing tests. This article presents first-and second-period carbon emission allowance models in combination with a low-carbon economy index evaluation system. Finally, we forecast reasonable carbon emission allowance allocation ratios for China for the periods starting in 2020 and 2030. A good allocation ratio for the carbon emission allowance can help boost China's economic development and help the country reach its energy conservation and emissions reduction goals.

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Section: Co 2 Emission Allowance Currency Ratio Forecasting Resumentioning

confidence: 71%

Forecasting the Allocation Ratio of Carbon Emission Allowance Currency for 2020 and 2030 in China

Zeng

Chen

2016

Sustainability

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“…This is crucial in the context of implementing the ambitious EU climate policy. Despite the provisions in new EU legislation providing special protection to "sectors exposed to the significant risk of carbon leakage", the risk of its escalation is high (2003( /87/EC 2009Clò 2010).…”

Section: Discussionmentioning

confidence: 99%

CO2 Embodied in Trade between Poland and Selected Countries

Mizgajski

2013

JEDEP

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Abstract. This study is aimed at analyzing the carbon embodied in trade flows between Poland and its major trade partners. Calculations are based on the data from the GTAP database for the year 2004. The study uses an input-output analysis, which allows responsibility to be assigned to individual flows for generating specific amounts of emissions in the economy. It is shown that Polish exports contain significantly more embodied carbon than Polish imports, despite the fact that the value of the imports is higher. Moreover, it is found that among the surveyed countries, only three were net importers of carbon emissions to Poland. Export to Germany is responsible for the most of emissions in Poland. In turn, Poland receives the most emissions from imports from Russia.

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“…A mapping from the European Union Transaction Log (EUTL, formerly known as CITL; EU Commission, 2005-2010 to ORBIS by Calel and Dechezleprêtre (forthcoming) allows us to match firms and countries that are not included in our interviews. 18 This results in a sample of 9061 installations (5037 firms) which account for 75% of EUTL installations and 76% of surrendered CO 2 allowances.…”

Section: Datamentioning

confidence: 99%

“…Operators in the power generation sector no longer receive any free allowances, although some exceptions to this apply in eight of the member states that have joined the EU since 2004. 8 Where deriving a product benchmark is not feasible, a hierarchy of fallback approaches is applied, as explained in detail by Sartor et al (forthcoming 12 Similar graphical representations have been used by Clò (2010) and Martin et al (2014b). The EUTL-ORBIS data used here are described in Subsection 3.1.…”

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confidence: 99%

On the Empirical Content of Carbon Leakage Criteria in the EU Emissions Trading Scheme

et al. 2013

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The EU Emissions Trading Scheme continues to exempt industries deemed at risk of carbon leakage from permit auctions. Carbon leakage risk is established based on the carbon intensity and trade exposure of each 4-digit industry. Using a novel measure of carbon leakage risk obtained in interviews with almost 400 managers at regulated firms in six countries, we show that carbon intensity is strongly correlated with leakage risk whereas overall trade exposure is not. In spite of this, most exemptions from auctioning are granted to industries with high trade exposure to developed and less developed countries. Our analysis suggests two ways of tightening the exemption criteria without increasing relocation risk among non-exempt industries. The first one is to exempt trade exposed industries only if they are also carbon intensive. The second one is to consider exposure to trade only with less developed countries. By modifying the carbon leakage criteria along these lines, European governments could raise additional revenue from permit auctions of up to €3 billion per year, based on a permit price of €30.

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Grandfathering, auctioning and Carbon Leakage: Assessing the inconsistencies of the new ETS Directive

Cited by 75 publications

References 12 publications

Forecasting the Allocation Ratio of Carbon Emission Allowance Currency for 2020 and 2030 in China

Forecasting the Allocation Ratio of Carbon Emission Allowance Currency for 2020 and 2030 in China

CO2 Embodied in Trade between Poland and Selected Countries

On the Empirical Content of Carbon Leakage Criteria in the EU Emissions Trading Scheme

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