first mandatory markets was the EU Emission Trading System, whose first phase ran from 2005-07. Unlike taxes, permits expose …

With the new rules of the EU ETS, involving cancellation of allowances, cumulative emissions are no longer fixed but …

We analyse the economic impact of using carbon pricing revenue to fund the EU budget. Such a reform would redistribute … implemented, the low carbon countries will prefer a lower carbon price, i.e. laxer climate policy at the EU level, than before the … reform. For high carbon countries the opposite is true. As a result, EU climate policy becomes less ambitious and less …