Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24394
Authors: 
Böhringer, Christoph
Year of Publication: 
2000
Series/Report no.: 
ZEW Discussion Papers 00-46
Abstract: 
In this paper we investigate how restrictions for emission trading to the energy-intensive power sector will affect the magnitude and distribution of abatement costs across EU countries vis-?-vis a comprehensive EU emission trading regime. We find that emission trading between European power sectors allows the harvest of a major part of the efficiency gains provided by full trade as compared to strictly domestic action. However, trade restrictions may create a more unequal distribution of abatement costs across member states than is the case for a comprehensive trade regime. The reason for this is that restricted permit trade enhances the secondary terms-of-trade benefits to EU member countries with low marginal abatement costs at the expense of the other EU member states.
Subjects: 
emission trading
computable general equilibrium
JEL: 
D58
Q43
Q58
Document Type: 
Working Paper

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