Please use this identifier to cite or link to this item: 
Year of Publication: 
Series/Report no.: 
Ilmenau Economics Discussion Papers No. 169
Technische Universität Ilmenau, Institut für Volkswirtschaftslehre, Ilmenau
Since its introduction, the European Emissions Trading Scheme (EU ETS) has been struggling with an oversupply of emission allowances and a highly volatile allowance price. One reason for the price decline is technological progress and ist demand-reducing effect, which is only partially taken into account in the system. We propose a simple benchmark approach to endogenously adjust the supply of allowances to technical progress. Using a non-parametric benchmark approach, we measure the required adjustment of the allowance supply to avoid a technologyinduced price decline and to maintain the incentive to invest in low-carbon technologies.
emission allowances
Data Envelopment Analysis
endogenous adjustment of supply
technological change
yardstick competition
Document Type: 
Working Paper

Files in This Item:
374.42 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.