Tradable Carbon Permits in Europe: Feasibility and Comparison with Taxes

Abstract

In the European Union (EU) the discussions on climate policy have focused on the instrument of taxation. However, there has been considerable opposition from both Member States and industry against the combined carbodenergy tax proposals. In this article, an alternative market-oriented instrument for controlling CO 2 emissions is discussed which overcomes some of the disadvantages of the tax: tradable emission permits. Special regard is given to the functional design and practical implementation of a system of tradable carbon permits for the European Union. Furthermore, tradable carbon permits are compared with a carbon tax. Copyright 1995 BPL.

The governance of rent‐seeking behavior in carbon asset pledge financing: An evolutionary game perspective

“…As an emerging asset with environmental protection properties and huge potential value, carbon asset has received great attention from scholars and business communities, and many researchers have studied the operation of carbon asset management (Akimoto et al, 2015; Koutsal & Nentjes, 2010). According to Marland et al (2001), carbon emission rights is the main form of carbon assets, they are the same expression of corporate assets, and their value is reflected through transactions.…”

Coase Theorem and its implication for environmental policy

“…The representatives of the industrialized nations of the globe signed the climate convention at the 1992 United Nations Conference on the Environment and Development in Rio de Janeiro. Stabilization of emissions is cited as the first goal of sustainable development due to the recognition that emissions of so-known greenhouse gases arising from human activities are the main source of an increase in the global temperature and climate change (Koutstall & Nentjes, 1995). Emissions, by its definition, are a byproduct of the manufacturing process, which are viewed as negative externalities to the whole society and needed to be controlled through policies.…”

The Legacy of Andries Nentjes

“…Nentjes performed numerous studies on emissions trading design, applied to the European legal context. An early example of this is his paper with Paul Koutstaal (1995) on tradable carbon permits in Europe, which includes a comparison with carbon taxes. Next to that, Nentjes also contributed to analyses of policies on acid rain, environmental innovation and water management, just to name a few examples.…”