Working paper by Geoffrey Barrows, Raphael Calel, Martin Jégard, Hélène Ollivier on 18 May 2023
This paper presents a new method for estimating the effects of regulations when treated and control firms compete on the output market.
Policy publication by Misato Sato, Luca Taschini, Josh Burke on 6 Sep 2022
This submission to the UK ETS Authority consultation on ‘Developing the UK Emissions Trading Scheme (ETS)’ provides evidence on implementing a net zero consistent ETS cap, Free Allocation policy, the expansion of the UK ETS to additional sectors, and incorporating greenhouse gas removal into the scheme.
Working paper by Marc Baudry, Anouk Faure, Simon Quemin on 25 Jun 2020
The authors of this paper develop a theoretical model of emissions trading in the presence of transaction costs, calibrating the model to annual transactions and compliance data in the European Union emissions trading scheme over its second phase.
Working paper by Simon Quemin on 10 Mar 2020
Following reform of the EU emissions trading system (ETS) in 2018 further regulatory amendments are on the horizon as part of the 2021 review. This paper evaluates and compares the impacts of realistic regulatory changes within the ETS to inform the 2021 review and raise ambition, examining two main policy levers: the linear reduction factor and the market stability reserve. read more »
Working paper by Simon Quemin, Raphaël Trotignon on 30 Aug 2019
The authors of this paper develop a model to evaluate first, the market developments in the European Union emissions trading scheme (EU ETS) over 2008–2017 ex-post and second, the performances of main features of the EU ETS reforms that took place in 2018, ex-ante. read more »
Working paper by Lutz Sager on 4 Apr 2019
This paper estimates the global distribution of the costs to consumers from carbon pricing, finding that some policies may be considered regressive for their burden on poorer consumers – but that the benefits from mitigating climate change may weaken or reverse the regressive effect. read more »
Working paper by Stefano Carattini, Eli Fenichel, Alexander Gordan, Patrick Gourley on 22 Mar 2019
This paper describes the benefits of a game created as an active learning method to teach current and future decision-makers about the ‘cap and trade’ system, one of the most innovative policy options developed by environmental economists. read more »
Working paper by Simon Quemin, Raphaël Trotignon on 15 Jan 2019
The authors of this paper develop a model to assess the market stability reserve, a key feature of reforming the European Union’s emissions trading system (EU ETS), concluding that it is successful in raising the allowance price, but is limited in its ability to improve the system’s resilience to allowance demand shocks. read more »
Working paper by Ara Jo on 12 Jun 2018
This paper uses data on the compliance of installations regulated under the EU Emissions Trading Scheme to investigate how the levels of trust in a country affect the compliance of firms with regulations on climate change. read more »
Working paper by Misato Sato, Karsten Neuhoff, Vera Zipperer on 20 Dec 2017
Benchmarks within emissions trading schemes are used to determine the level of free allocation of permits to sectors at the risk of carbon leakage. This paper analyses how the design of such benchmarks can impact on firms’ production decisions and create efficient incentives for production and technology choices. read more »
