@techreport{Anger2006Emission,
abstract = {This paper assesses the economic impacts of linking the EU Emission Trading Scheme (ETS) to emerging schemes beyond Europe, in the presence of a post-Kyoto agreement in 2020. Simulations with a numerical multi-country model of the world carbon market show that linking the European ETS induces only marginal economic benefits: As trading is restricted to energy-intensive industries that are assigned generous initial emissions, the major compliance burden is carried by non-trading industries excluded from the linked ETS. In the presence of parallel government trading under a post-Kyoto Protocol, excluded sectors can however be substantially compensated by international trading at the country level, thus increasing the political attractiveness of the linking process. From an efficiency perspective, a desirable future climate policy regime represents a joint trading system that enables international emission trading between ETS companies and governments. While the Clean Development Mechanism (CDM) cannot alleviate the inefficiencies of linked ETS, in a parallel or joint trading regime the access to abatement options of developing countries induces large additional cost savings. Restricting CDM access via a supplementarity criterion does not significantly decrease the economic benefits from project-based emission crediting.},
address = {Mannheim},
author = {Niels Anger},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H22; H21; Q58; D61; 330; EU ETS; Emission Trading; Kyoto Protocol; Clean Development Mechanism},
language = {eng},
number = {06-58},
publisher = {Zentrum f\"{u}r Europ\"{a}ische Wirtschaftsforschung (ZEW)},
title = {Emission trading beyond Europe: linking schemes in a post-Kyoto world},
type = {ZEW Discussion Papers},
url = {http://hdl.handle.net/10419/24513},
year = {2006}
}
