Over-Allocation or Abatement? A Preliminary Analysis of the EU ETS Based on the 2005–06 Emissions Data

Abstract

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Options introduction and volatility in the EU ETS

“…The EU ETS is a compliance market, which means that each installation of the approximately 10,600 covered installations needs to surrender each year a number of allowances, fixed by each Member State in its National Allocation Plan (NAP), equal to its verified emissions (Ellerman and Buchner (2008), ). To comply with their emissions target, installations may exchange quotas either over-the-counter, or through brokers and market places.…”

Energy and climate policies to 2020: the impacts of the European “20/20/20” approach

“…The surplus of allowances was due to a combination of two factors: (1) generous national allocations and (2) effective internal reductions. The market analysts consider that the first factor was by far the most important (Point Carbon, 2007), but some economic studies show that both factors have occurred, the second one even greater than the first one (Ellerman and Buchner, 2006). In either case, the European authorities have retained the lessons from the first experimental phase; the Commission review process of the second round of NAPs for the 2008-2012 period turns out to be more vigorous, involving reductions of initial national quotas for almost every Member country.…”

Governance and Environmental Policy Integration in Europe: What Can We Learn from the EU Emission Trading Scheme?

“…For a preliminary analysis of this issue based on the 2005 data see Ellerman and Buchner (2006). 10 The Commission acted as agent for the whole in implementing a commonly agreed upon policy, and was as educator and facilitator of the decisions that Member States had to take.…”