Karpestam, Peter; Andersson, Fredrik NG - In: Economics Bulletin 31 (2011) 1, pp. 297-308
According to EU regulations, CO2 emissions capped by the EU emission trading system must decline by 1.74 percent per year from 2013 and onwards. This paper argues that it is necessary to allow short term fluctuations in emissions in order to avoid unnecessary volatility in the real economy. An...