Brink, Corjan; Vollebergh, Herman R. J.; Van der Werf, Edwin - 2015 - This version: November 24, 2015
This paper studies various options to support allowance prices in the EU Emissions Trading System (ETS), such as … adjusting the cap, an auction reserve price, and fixed and variable carbon taxes in addition to EU ETS. We use a dynamic … at the EU Member State level. We find that both a variable carbon tax and an auction reserve price support effective …