Research article by Misato Sato, Raphael Calel on 1 Aug 2022
This paper analyses the evolution of the EU ETS from a political economy perspective, emphasizing the interaction of economic principles and political interests at pivotal moments, and showing how each compromise changed the scope for future design choices.
Research article by Antoine Dechezleprêtre, Caterina Gennaioli, Ralf Martin, Mirabelle Muûls, Thomas Stoerk on 1 Feb 2022
This paper examines whether the European Union Emissions Trading System (EU ETS) has led companies to shift the location of production, thereby creating carbon leakage.
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 »
Policy publication by Josh Burke, Rebecca Byrnes, Sam Fankhauser on 2 Aug 2019
This policy brief analyses global trends in carbon taxation and differences in tax design around the world to draw out lessons for the design of a possible new carbon tax for the UK, as the country plans how to meet its ambitious new net-zero emissions target and how it prices carbon after Brexit. 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 Baran Doda, Simon Quemin, Luca Taschini on 27 Feb 2019
A patchwork of emissions trading systems (ETSs) currently operate in several jurisdictions, including the EU, Switzerland, South Korea and several US states and Canadian provinces. China has also been experimenting with emissions trading in seven provinces and cities and is setting up a national system that will be much larger than the current largest system, […]
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 »
